Govt spells out measures to retrieve black money

The government also informed the Supreme Court that it has completed negotiations for Tax Information Exchange Agreement (TIEA) with 10 countries where the money is believed to have been stashed

New Delhi: Black money parked in tax havens abroad will be taxable income under the Direct Taxes Code (DTC) Bill, the Centre told the Supreme Court today, spelling out a host of measures to retrieve it.

The government also informed the apex court that it has completed negotiations for Tax Information Exchange Agreement (TIEA) with 10 countries where the money is believed to have been stashed, reports PTI.

The ten countries are Bahamas, Bermuda, British Virgin Island, Isle of Man, Cayman Island, British island of Jersey, Monaco, St Kitts and Nevis, Argentina and Marshall Island.

It said Cabinet approval has been granted in relation to eight of these agreements.

"It is submitted that the central government has proposed new provisions for unearthing black money in the DTC Bill by defining taxable assets as inclusive of the deposits in banks located outside India in case of individuals and such bank deposits not recorded in the books of account in case of others," an additional affidavit filed by the ministry of finance said.

The affidavit comes in the wake of searching questions posed by a bench of justices B Sudershan Reddy and  S Nijjar on a public interest litigation (PIL) filed by eminent jurist Ram Jethmalani and others, seeking retrieval of black money stashed in banks abroad.

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Strong sales boost M&M Q3 net profit 78% to Rs734.68 crore

The significant growth in the profit, despite the relentless increase in material costs is due to a good volume performance by both vehicles and tractors, tight control on expenses and prudent financial management

New Delhi: Tractor and utility vehicles major Mahindra & Mahindra (M&M) on Wednesday reported a splendid 77.59% increase in its net profit for the quarter ended 31 December 2010, at Rs734.68 crore from Rs413.70 crore in the corresponding previous period. Robust demand and a host of cost saving initiatives helped the company achieve the performance, reports PTI.

The total income during the third quarter of this fiscal surged by 36.11% to Rs6,121.09 crore from Rs4,497.12 crore in the year-ago period, the company stated in its filing with the stock exchanges.

"The significant growth in the profit of the company, despite the relentless increase in material costs is due to a good volume performance by both vehicles and tractors, tight control on expenses and prudent financial management resulting in lower interest costs," M&M said.

The company's operating profit margin for the December 2010 quarter was 15.09%, up from 14.90% in the December 2009 quarter.

During the quarter, the company sold 56,211 units of utility vehicles in the domestic market, enjoying 62.2% share in the segment.

The domestic sales of 'Mahindra Swaraj' tractors grew to 55,649 units from 41,074 units in the same quarter last fiscal, the company said.

While vehicle exports jumped by 50.71% to 5,020 units, tractors exports climbed by 10.09% to 3,120 units, it added.

Commenting on the outlook, M&M said, "While the demand for the company's products remains robust, the recent hardening in the prices of commodities and oil causes a degree of concern".

"The measures adopted by the Reserve Bank of India to combat inflation will necessarily result in tighter liquidity and further possibility of interest costs moving upwards."

The company, however, said the overall outlook for the future remains positive.

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HDFC invests Rs50 crore in Career Launcher’s Indus World Schools

HDFC has agreed to pick up a stake, worth Rs50 crore, in Indus World Schools

Mortgage provider Housing Development Finance Corp (HDFC) has agreed to pick up a stake in Indus World Schools for Rs50 crore, a chain promoted and run by Career Launcher (CL), a diversified education company in India. Gaja Capital Partners, a private equity firm, is an existing investor and is co-investing in this round.

Gopal Jain, managing partner, Gaja said, "Education and housing are core needs of India's emerging consumers. This partnership between two sector leaders will leverage complementary strengths to help address the huge and immediate unmet demand for K12 education from India's quality seeking consumers."

On Wednesday, HDFC ended 3.16% up at Rs609.55 on the Bombay Stock Exchange, while the benchmark Sensex declined 1.03% to 17,592.77 points.

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