BoB, Andhra Bank and Legal & General infuses additional Rs125 crore in IndiaFirst

IndiaFirst Life Insurance, a joint venture between state-run Bank of Baroda (BoB), Andhra Bank and UK-based Legal & General, said the three partners have infused additional Rs125 crore in the company.

With the Rs125 crore infusions, the total paid up capital of the insurer now stands at Rs 455 crore, IndiaFirst said in a release.

The capital has been infused according to the insurer's business plan for launching new products, expanding new distribution channels and continuing to develop the IndiaFirst brand in the market, it added.

IndiaFirst plans to further strengthen its distribution reach by launching its alternate channel of distribution.

On Wednesday, BoB shares ended 0.8% up at Rs291 while Andhra Bank shares closed 1.8% down on the Bombay Stock Exchange, while the benchmark Sensex declined 0.7% to 19,956 points.


Areva T&D wins order worth Rs150 crore from Indiabulls

Power transmission and distribution company Areva T&D India Ltd said it won a contract, worth about Rs150 crore, from Indiabulls for supplying generator transformers.

Areva T&D will supply generator transformers to Indiabulls for its upcoming power projects at Nandgaonpeth near Amravati (5x270 MW) and at Sinnar near Nasik (5x270 MW) in Maharashtra, the company said in a regulatory filing.

The generator transformers will be delivered by the second quarter of 2012, it added.

On Wednesday, Areva T&D shares ended 0.1% down at Rs291 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.7% to 19,956 points.


Finmin set to announce tax exemption on 9.5% PF returns

New Delhi: The finance ministry is believed to have agreed to modify its notification for exempting from tax the entire 9.5% interest on provident fund (PF) deposits for 2010-11, and will soon announce the good news for Employees Provident Fund Organisation’s (EPFO) six crore depositors, reports PTI.

"The finance ministry will soon revise the notification brought out on 26th August, for giving exemption on returns on provident fund deposits up to 9.5% (rate of return) for this fiscal", an official source said.

The new notification would be out in next 10 days as the ministry has already initiated the process of revising the earlier notification, the source said.

The finance ministry had on 26th August — before the Central Board of Trustees of the EPFO recommended the interest rate hike to 9.5% for the current fiscal — came out with a notification that said the returns of up to 8.5% on provident fund deposits would enjoy tax exemption.

The notification became effective from 1 September 2010.

Unless the notification is amended, the additional 1% interest on provident fund would be subjected to income tax affecting 80% of subscribers who otherwise do not pay taxes.

Earlier EPFO's Central Provident Fund Commissioner Samirendra Chatterjee had indicated that he would take up this matter with the finance minister through the labour ministry to get the issue resolved.

Under Schedule IV of the Income Tax Act, 1961, there is provision for exempting returns on retirement fund from taxes.

EPFO's apex decision making body Central Board of Trustees (CBT) headed by labour minister Mallikarjun Kharge on 15th September decided to give a return of 9.5% on the provident fund deposits, up from 8.5% during the last five years.

Earlier, the exemption was provided on interest income of provident fund up to 12%, though only 8.5% was paid to the subscribers.

"This had never happened in the history of the EPFO. The rate announced by the EPFO has been the benchmark rate for exemption. The finance ministry will have to revise its notification", A D Nagpal, secretary Hind Mazdoor Sabha and member of the CBT had said.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)