Sunday, December 13, 2009

An excellent and Great Love Story of Narayana Murthy (Infosys Founder) and Sudha (From Sudha's Autobiography)





An Inspiring Love story,, its worth, Read it !!


Love Story of Narayana Murthy (Infosys Founder) and Sudha (From Sudha's Autobiography)


It was in Pune that I met Narayan Murty through my friend Prasanna who is now the Wipro chief, who was also training in Telco(TataMotors). Most of the books that Prasanna lent me had Murty's name on them which meant that I had a preconceived image of the man. Contrary to expectation, Murty was shy,bespectacled and an introvert. When he invited us for dinner. I was a bit taken aback as I thought the young man was making a very fast move. I refused since I was the only girl in the group. But Murty was relentless and we all decided to meet for dinner the next day at 7.30 p.m .. at Green Fields hotel on the Main Road ,Pune.


The next day I went there at 7' o ! clock since I had to go to the tailor near the hotel. And what do I see? Mr. Murty waiting in front of the hotel and it was only seven. Till today, Murty maintains that I had mentioned (consciously!) that I would be going to the tailor at 7 so that I could meet him... And I maintain that I did not say any such thing consciously or unconsciously because I did not think of Murty as anything other than a friend at that stage. We have agreed to disagree on this matter.


Soon, we became friends. Our conversations were filled with Murty's experiences abroad and the books that he has read. My friends insisted that Murty as trying to impress me because he was interested in me. I kept denying it till one fine day, after dinner Murty said, I want to tell you something. I knew this   as it. It was coming. He said, I am 5'4" tall. I come from a lower middle class family. I can never become rich in my life an! d I can never give you any riches. You are beautiful, bright, and intelligent and you can get anyone you want. But will you marry me? I asked Murty to give me some time for an answer. My father didn't want me to marry a wannabe politician, (a communist at that) who didn't have a steady job and wanted to build an orphanage...


When I went to Hubli I told my parents about Murty and his proposal. My mother was positive since Murty was also from Karnataka, seemed intelligent and comes from a good family. But my father asked: What's his job, his salary, his qualifications etc? Murty was working as a research assistant and was earning less than me. He was willing to go dutch with me on our outings. My parents agreed to meet Murty in Pune on a particular day at10 a. m sharp. Murty did not turn up. How can I trust a man to take care of my daughter if he cannot keep an appointment, asked my father.


At 12noon Murty turned up in a bright red shirt! He had gone on work to Bombay , was stuck in a traffic jam on the ghats, so he hired a taxi(though it was very expensive for him) to meet his would-be father-in-law. Father was unimpressed. My father asked him what he wanted to become in life.


Mur thy said he wanted to become a politician in the communist party and wanted to open an orphanage. My father gave his verdict. NO. I don't want my daughter to marry somebody who wants to become a communist and then open an orphanage when he himself didn't have money to support his family.


Ironically, today, I have opened many orphanages   something, which Murty wanted to do 25 years ago. By this time I realized I had developed a liking towards Murty which could only be termed as love. I wanted to marry Murty because he is an honest man. He proposed to me highlighting the negatives in his life.. I promised my father that I will not marry Murty without his blessings though at the same time, I cannot marry anybody else. My father said he would agree if Murty promised to take up a steady job. But Murty refused saying he will not do things in life because somebody wanted him to. So, I was caught between the two most important people in my life.


The stalemate continued for three years during which our courtship took us to every restaurant and cinema hall in Pune. In those days, Murty was always broke. Moreover, he didn't earn much to manage. Ironically today, he manages Infosys Technologies Ltd., one of the world's most reputed companies. He always owed me money. We used to go for dinner and he would say, I don't have money with me, you pay my share, I will return it to you later. For three years I maintained a book on Murty's debt to me.. No, he never returned the money and I finally tore it up after my wedding.


The amount was a little over Rs 4000. During this interim period Murty quit his job as research assistant and started his own software business. Now, I had to pay his salary too! Towards the late 70s computers were entering India in a big way.


During the fag end of 1977 Murty decided to take up a job as General Manager at Patni computers in Bombay .. But before he joined the company he wanted to marry me since he was to go on training to the US after joining. My father gave in as he was happy Murty had a decent job, now.


WE WERE MARRIED IN MURTY'S HOUSE IN BANGALORE ON FEBRUARY 10, 1978 WITH ONLY OUR TWO FAMILIES PRESENT.I GOT MY FIRST SILK SARI. THE WEDDING EXPENSES CAME TO ONLY RS 800 (US $17) WITH MURTY AND I POOLING IN RS 400 EACH..


I went to the US with Murty after marriage. Murty encouraged me to see America on my own because I loved travelling. I toured America for three months on backpack and had interesting experiences which will remain fresh in my mind forever. Like the time when the New York police took me into custody because they thought I was an Italian trafficking drugs in Harlem . Or the time when I spent the night at the bottom of the Grand Canyon with an old couple. Murty panicked because he couldn't get a response from my hotel room even at midnight. He thought I was either killed or kidnapped.


IN 1981 MURTY WANTED TO START INFOSYS. HE HAD A VISION AND ZERO CAPITAL...initially I was very apprehensive about Murty getting into business. We did not have any business background ... Moreover we were living a comfortable life in Bombay with a regular pay check and I didn't want to rock the boat. But Murty was passionate about creating good quality software. I decided to support him. Typical of Murty, he just had a dream and no money. So I gave him Rs 10,000 which I had saved for a rainy day, without his knowledge and told him, This is all I have. Take it. I give you three years sabbatical leave. I will take care of the
financial needs of our house. You go and chase your dreams without any worry. But you
have only three years!


Murty and his six colleagues started Infosys in 1981,with enormous interest and hard work. In 1982 I left Telco and moved to Pune with Murty. We bought a small house on loan which also became the Infosys office. I was a clerk-cum-cook-cum-programmer. I also took up a job as Senior Systems Analyst with Walchand group of Industries to support the house.


In 1983 Infosys got their first client, MICO, in Bangalore . Murty moved to Bangalore and stayed with his mother while I went to Hubli to deliver my second child, Rohan. Ten days after my son was born, Murty left for the US on project work. I saw him only after a year, as I was unable to join Murty in the US because my son had infantile eczema, an allergy to vaccinations. So for more than a year I did not step outside our home for fear of my son contracting an infection. It was only after Rohan got all his vaccinations that I came to Bangalore where we rented a small house in Jayanagar and rented another house as Infosys headquarters. My father
presented Murty a scooter to commute. I once again became a cook, programmer, clerk,
secretary, office assistant et al. Nandan Nilekani (MD of Infosys) and his wife Rohini stayed with us. While Rohini babysat my son, I wrote programs for Infosys. There was no car, no phone, and just two kids and a bunch of us working hard, juggling our lives and having fun while Infosys was taking shape. It was not only me but also the wives of other partners too who gave their unstinted support. We all knew that our men were trying to build something good.


It was like a big joint family,taking care and looking out for one another. I still remember Sudha Gopalakrishna looking after my daughter Akshata with all care and love while Kumari Shibulal cooked for all of us. Murty made it very clear that it would either be me or him working at Infosys. Never the two of us together... I was involved with Infosys initially.


Nandan Nilekani suggested I should be on the Board but Murty said he did not want a husband and wife team at Infosys. I was shocked since I had the relevant experience and technical qualifications. He said, Sudha if you want to work with Infosys, I will withdraw, happily. I was pained to know that I will not be involved in the company my husband was building and that I would have to give up a job that I am qualified to do and love doing.


It took me a couple of days to grasp the reason behind Murty's request..I realized that to make Infosys a success one had to give one's 100 percent. One had to be focussed on it alone with no other distractions. If the two of us had to give 100 percent to Infosys then what would happen to our home and our children? One of us had to take care of our home while the other took care of Infosys.


I opted to be a homemaker, after all Infosys was Murty's dream. It was a big sacrifice but it was one that had to be made. Even today, Murty says, Sudha, I stepped on your career to make mine. You are responsible for my success.


That's the Power of Love.


Every man needs a woman to motivate him and to give him a reason to live....   

Monday, November 30, 2009

Cheques can be written in Regional language now...


BANKS ARE INSTRUCTED TO ACCEPT CHEQUES WRITTEN IN REGIONAL LANGUAGES


This information was given by Minister of State for Finance, Shri Namo Narain Meena in written reply to a question raised in Rajya Sabha today.

Wednesday, November 25, 2009

E-mails not private any more


Mumbai -- The police can now read your e-mails without prior permission from the home department. The Parliament recently cleared an amendment to the Information Technology (IT) Act, allowing the police to intercept or decrypt online information without seeking the home department's nod.

Rising instances of cyber crime have prompted the move aimed at cutting red tape. The amendment empowers the inspector general of police to permit interception or decoding information in cyber space in an emergency. This will help speedy detection of cyber crimes like phishing or sending offensive messages and in tracking terrorists who operate using the Internet.

Advocate I.P. Bagaria said the amendment was necessary. "Every citizen has a right to privacy. However, this cannot be at the cost of the state or country," he said. The secretary in-charge of the state home department should be informed about the interception within three days of tracking.

The secretary - the final sanctioning authority - has to grant permission within seven days. Once the sanction has been obtained, it has to be placed before the Review Committee within two months. Senior advocate Amit Desai said this period should be reduced. "Otherwise there are chances of misuse of these powers."

The police had to earlier take permission from the additional chief secretary, home or, in an emergency, the joint secretary. "Liberalisation of interception is required when the world is dealing with terrorism," said senior police officer-turned-lawyer Y.P. Singh.

Cyber expert Vijay Mukhi said there should be a mechanism to check misuse.

Sunday, November 22, 2009

Pre- conditions for using the designation Chartered Accountant


Pre- conditions for using the designation Chartered Accountant




Section 7 of the Chartered Accountants Act 1949 empowers only a person who has been enrolled as a member of the Institute of Chartered Accountants of India to use the designation of Chartered Accountant along with his name.



In other words, it is clarified that a person who has passed the Final Examination completed the prescribed period of Articleship and a course on General Management and Communication Skills and has enrolled himself as an Associate member of the ICAI and continues to keep the membership alive through yearly payment of prescribed fees in only entitled to use the designation of Chartered Accountant along his name and also use the desinatory letters as CA. as prefix to his name.

A person who has passed the Final Examination of the Institute and complied with other requirements or not but has enrolled himself as a member of the Institute is not entitled to use the designation of Chartered Accountant nor the designatory letters as CA. as a prefix to his name.

Non members of ICAI who are using the designation as Charted Accountant or designatory letters as CA. as a prefix to their names are advised, in their own interest to desist from using these designatory letters failing which suitable steps against them in accordance with the provisions of the Chartered Accountants Act, 1949 and Regulations framed there under will be initiated without prejudice to any other penal action under the law in force for the time being

Song from the heart of Chartered Accountant

Song by the heart of all CAs



Saari Umar Hum
Mar Mar ke jee liye
Ek pal to ab humein
Jeene Do Jeene do

Saari Umr Hum
Mar Mar ke jee liye
Ek pal to ab humein
Jeene Do Jeene do
Saari Umr Hum
Mar Mar ke jee liye
Ek pal to ab humein
Jeene Do Jeene do

Na Na NA
Na Na NA

Na Na NA
Na Na NA


Give me some Sunshine
give me some rain
Give me another chance
wana grow up once again

Give me some Sunshine
give me some rain
Give me another chance
wana grow up once again


Kandhon ko kitabon
Ke bojh ne jhukaya
Rishvat dena to khud
Papa ne sikhya
99% marks laaoge to
ghadi varna chadi

Likh likh pada
hatheli par

Alpha beta gamma ka chaala
Concentrated H2so4
Ne Poora Poora bachpan jala daala


Bachpan to gaya
Jawani bhi gayi
Ek pal To ab humein
Jeen Do jeene do
Bachpan to gaya
Jawani bhi gayi
Ek pal To ab humein
Jeen Do jeene do

Saari Umr Hum
Mar Mar ke jee liye
Ek pal to ab humein
Jeene Do Jeene do
Na Na NA
Na Na NA

Na Na NA
Na Na NA


Give me some Sunshine
give me some rain
Give me another chance
wana grow up once again

Give me some Sunshine
give me some rain
Give me another chance
wana grow up once again


Na Na NA
Na Na NA
Na Na NA

Friday, November 13, 2009

Real Estate Investment TRust

Concept of REIT
A real estate investment trust (REIT) is a company that buys, develops, manages, and/or sells real estate such as skyscrapers, shopping malls, apartment complexes, office buildings, or housing developments. Rather than investing directly in real estate, investors of REITs invest in a professionally managed portfolio of real estate. REITs trade on the major exchanges, just like stocks. REITs make money from rental income, profits from the sale of the property, and other services provided to tenants. REITs also receive special tax considerations; they do not pay taxes as long as they pay out at least 90 percent of their net income to their investors..
Basic REIT Structure



How does a company qualify as a REIT
In order for a company to qualify as a REIT, it must comply with certain provisions within the Internal Revenue Code. As required by the Tax Code, a REIT must:
  • Be structured as corporation, trust, or association
  • Be managed by a board of directors or trustees
  • Have the shares that are fully transferable
  • Be taxable as a domestic corporation
  • Not be a financial institution or an insurance company
  • Be jointly owned by 100 persons or more
  • Pay dividends of at least 90% of the REIT's taxable income
  • No more than 50% of the shares can be held by five or fewer individuals during the last half of each taxable year
  • At least 75% of total assets must be invested in real estate
  • Derive at least 75% of gross income from rents or mortgage interest
  • No more than 20% of its assets may consist of stocks in taxable REIT subsidiaries.
Terms used in the context of REIT
  1. Adjusted Funds From Operations (AFFO) - It is a computation made by analysts and investors to measure a real estate company's cash flow generated by operations. It is calculated by subtracting from Funds from Operations (FFO) both recurring expenditures that are capitalized by the REIT and then amortized, but which are necessary to maintain a REIT's properties and its revenue stream (e.g., new carpeting and drapes in apartment units, leasing expenses and tenant improvement allowances) and "straight-lining" of rents. This calculation also is called Cash Available for Distribution (CAD) or Funds Available for Distribution (FAD).
     
  2. Capitalization Rate - The capitalization rate (or "cap" rate) for a property is determined by dividing the property's net operating income by its purchase price. Generally, high cap rates indicate higher returns and greater perceived risk.
     
  3. Cash (or Funds) Available for Distribution - Cash (or Funds) available for distribution (CAD or FAD) is a measure of a REIT's ability to generate cash and to distribute dividends to its shareholders.
     
  4. Cost of Capital - The cost to a company of raising capital in the form of equity or debt. The cost of equity capital generally is considered to include both the dividend rate as well as the expected equity growth either by higher dividends or growth in stock prices. The cost of debt capital is merely the interest expense on the debt incurred.
     
  5. EBITDA - Earnings before interest, taxes, depreciation and amortization. This measure is sometimes referred to as Net Operating Income (NOI).
     
  6. Equity Market Cap - The market value of all outstanding common stock of a company.
     
  7. Funds From Operations (FFO) - The most commonly accepted and reported measure of REIT operating performance. Equal to a REIT's net income, excluding gains or losses from sales of property, and adding back real estate depreciation.
     
  8. Leverage - The amount of debt in relation to either equity capital or total capital.
     
  9. Net Asset Value (NAV) - The net "market value" of all a company's assets, including but not limited to its properties, after subtracting all its liabilities and obligations.
     
  10. Positive Spread Investing (PSI) - The ability to raise funds (both equity and debt) at a cost significantly less than the initial returns that can be obtained on real estate transactions.
     
  11. Securitization - Securitization is the process of financing a pool of similar but unrelated financial assets (usually loans or o

Wednesday, November 11, 2009

Review on APKGK

Ajab Prem Ki Corny Kahani!

Movie: Ajab Prem Ki Ghazab Kahani
Cast: Ranbir Kapoor, Katrina Kaif, Upen Patel
Director: Rajkumar Santoshi Pick any love triangle, toss it with hackneyed humour and garnish with hip-shaking music. Voila! You have a masala potboiler. Rajkumar Santoshi seems to have used the same recipe for Ajab Prem Ki Ghazab Kahani. Only, his rendition causes serious indigestion!
The script is ridiculous and its probably for the best. Our popcorn-loving audience has gotten used to funny no-brainers. No wonder movies like All the Best and Wanted max the box office, so does Ajab Prem…
The movie has been shot in the picturesque hill-station Ooty. Prem (Ranbir Kapoor) along with his quirky bunch of friends runs a certain ‘happy club’ which aims at uniting lovers. When a new girl Jenny (Katrina Kaif) moves into the small town, Prem instantly falls in love with her but can’t get himself to express it. As Prem and Jenny become friends, he tries his level best to prove his love without actually spelling it out. While he’s at it, Jenny’s foster-parents want her to get married to a wealthy Christian boy. Much against her will, they take her to Goa for the marriage.
When Prem learns about this, he rushes to rescue his lady love. A teary-eyed Jenny is relieved to see Prem, who must bail her out of the forced marriage and reunite her with her actual loverboy, Rahul! In true ‘happy club’ spirit, a heart-broken Ranbir agrees. All this, and we’ve only cruised the first half of the film. The second half introduces many new characters including Rahul (Upen Patel), his father - a politician contesting the elections, and an underworld don. Several confusing events thrown in, the maze ends with Jenny developing love for Prem and waving goodbye to Rahul. Ajab, indeed!
Katrina is meant to play eye-candy and she does it with ease. Her stammering act in the film hams. Watching Upen and Katrina struggle with Hindi together is hilarious! Clearly, Ranbir Kapoor is the saving grace of the film. His work is fresh and energetic. The little jig he does in a party scene, is super cute! Bachna Ae Haseeno may have bombed but his rocking performances in Wake Up Sid and APKGK have made him the new king of Bollywood. The supporting cast of APKGK also deserves applause. Darshan Jariwala (Prem’s dad), Smita Jaykar (Prem’s mom), Navneet Nishan (Jenny’s mom), and Govind Namdeo (Rahul’s dad) are a laugh riot!
The movie has some entertaining moments and a special appearance, I’m not going to tell :) It is very funny - in parts. APKGK is for you only if you enjoy corny comedy or have a crush on Ranbir Kapoor.

Wednesday, November 4, 2009

Satyam case: Clean chit to PwC

Accountancy regulator Institute of Chartered Accountants of India (ICAI has withdrawn disciplinary proceeding against auditing firm PricewaterhouseCoopers, allegedly involved in the Satyam [ Get Quote ] scam.
Earlier on Wednesday, the Delhi [ Images ]-based franchise of PwC had approached the Delhi high court seeking quashing of proceedings initiated against it by the government in the aftermath of Satyam scam.
It pleaded before the court that the government proceedings were illegal as they have no connection with the Bangalore-based franchise which had audited Satyam accounts.
"There are six franchises of the international audit firm in the country and they are not related to each other in any way. We have nothing to do with the Bangalore firm which had audited Satyam accounts.
"So there doesn't arise any cause of action against us in the aftermath of the Satyam scam," senior advocate Mukul Rohatgi, appearing for the Delhi-firm, pleaded.
He submitted that the proceeding against it should be quashed immediately. Justice Sanjeev Khanna after hearing his arguments asked the government counsel to take instructions from the Centre and inform the court.


Source: Rediff Business

Monday, November 2, 2009

online registration of TIN


October 30, 2009
Dear Members,
We have been informed by National Securities Depository Ltd. (NSDL) that they have introduced two new features in TIN this week.
1.      Online registration of TAN
A facility to register TAN online is available on the TIN website (www.tin-nsdl.com). The Income Tax Department requires all deductors to register their TANs online. Authenticated access (through user ID and password) will be provided to registered deductors. Registration is free.  
An acknowledgment number will be displayed on successful registration. This acknowledgment number is to be kept securely. In future user id / password will be provided to the deductors who have successfully registered.
On login, the following will be available to the deductors-
                    i.            view of the status of all statements filed;
                  ii.           download of consolidated quarterly e-TDS / TCS statement for  preparation of correction statement; and
                iii.           other functionalities related to quarterly TDS /TCS statement.
 Guidelines for TAN Registration
General
  1. TAN registration should be done online at the website of the Tax Information Network www.tin-nsdl.com.
  2. Fields marked with (*) are mandatory.
  3. Select the values from the drop down wherever provided.
  4. Register all active TANs.
Details of Deductor
  1. Mention details of deductor (TAN).
  2. Select appropriate deductor category from the dropdown.
  3. Mention PAN of deductor. Mention “PANNOTREQD”, in case PAN is not available i.e. deductor is not required to have PAN as per the statute.
  4. PAO Code and DDO Code are mandatory for deductor category “Central Government”.
  5. If PAO Code is not available then mention value “PAOCDNOTAVBL”.
  6. If DDO Code is not available then mention value “DDOCDNOTAVBL”.
  7. For PAO Registration number, mention registration number allotted, if any, by Central Record Keeping Agency (CRA) under New Pension Scheme (NPS).
  8. For DDO Registration number, mention registration number allotted, if any, by Central Record Keeping Agency (CRA) under New Pension Scheme (NPS).
Contact Details of Deductor
  1. Mention demographic details of deductor (TAN) i.e. complete address and contact details.
  2. Provide valid email id and telephone no. / mobile no.
  3. Provide details of responsible person and designation.
Statement Details
  1. Mention details of any regular e-TDS / TCS quarterly statement accepted in TIN on or after April 01, 2008.
  2. Check the status of e-TDS / TCS statement at the Quarterly Statement Status available at the TIN website by entering the TAN and Provisional Receipt Number of the statement before providing statement details.
  3. For entering statement details you may refer the Provisional Receipt issued at the time of acceptance of the e-TDS / TCS statement.
Generation of Acknowledgement
  1. After filling up the information, click “submit”. On submission of details if system shows any errors, rectify and re-submit the form.
  2. A confirmation screen with all the data filled by the user will be displayed. The same can be either confirmed or edited.
  3. On confirmation, an acknowledgement number will be displayed.
  4. Print the acknowledgment and preserve the same for future use.
  5. For future correspondence mention the TAN registration number provided by TIN along with the TAN.
  6. You can re-generate the “Acknowledgement for TAN Registration” by registering again
Taxpayers who have registered to view Form 26AS online can view details of paid refund in their Form 26AS from F.Y. 2009-10 (A.Y. 2010-11) onwards. Refunds received during the selected A.Y. will be displayed in Form 26AS. For instance, refunds pertaining to A.Y. 2005-06 which are received in F.Y. 2009-10 (A.Y. 2010-11) will be displayed in Form 26AS for F.Y. 2009-10 (A.Y. 2010-11).
The following details related to refund will be displayed:
  • A.Y. for which refund is paid
  • Mode of payment i.e. ECS, paper (refund cheque), etc.
  • Amount of refund
  • Date of payment
Taxpayers can register online at the TIN website to view Form 26AS.

Sunday, November 1, 2009

Section 66A not a Charging Section – Tax paid by reverse charge eligible as input credit if service is an input service


COMMISSIONER (LTU), Mumbai raised an issue with the Ministry that the list of duties/taxes mentioned under Rule 3 of the CENVAT Credit Rules, 2004 covers only section 66 of the Finance Act, 1994 and does not mention section 66A of the Finance Act, 1994. Since Section 66A refers to payment by recipient of service imported from abroad, under reverse charge mechanism, in the absence of a specific mention of this Section in Rule 3, any credit of such tax paid would be illegal.
It was further mentioned that CERA has objected to the clarification issued by the Board vide letter F.No.BI/4/2006-TRU dated 19th April, 2006 wherein it was clarified that if such imported service is used as input for providing any taxable output service, the service tax paid thereon can be taken as input credit, in the absence of a specific mention of section 66A in Rule 3.
The Ministry examined this matter and it is clarified that the provisions under section 66A state that in case service is provided from abroad and received in India such taxable service shall be treated as if the recipient had himself provided the service in India, and accordingly all the provisions of Chapter V of the Finance Act, 1994 would apply. Therefore, it is clear that section 66A is not a charging section by itself. It only creates a legal fiction to deem import of service as provision of service within India so that the provisions of Chapter V of the Finance Act, 1994 can be applied. Section 66 remains the charging section even for import of services.
In view of this, it is clear that there is no mistake or omission in the relevant provisions of the CENVAT Credit Rules, 2004 and credit of service tax paid on imported services should be allowed if they are in the nature of input services. It is further advised that the CERA objection on the subject should be replied accordingly.
Such an important clarification explaining the clear position of law by the Ministry/Board is indeed commendable. But why is it that the Ministry/Board does not give up the habit of hiding such important clarifications from the stakeholders. Is it not incumbent on the Ministry/Board to make this clarification public?
Further, does the Ministry/Board think that this issue is only confined to Mumbai and has no relevance for the service recipients in the rest of the country? While a copy of this clarification is marked to the Director General, Service Tax for informing the field formations, what about the service recipients who are at the receiving end across the country?

Wednesday, October 28, 2009

An Important Announcement for Students of Final (Old) Examination – Extension by two more attempts i.e. May, 2010 and November, 2010


An Important Announcement for Students of Final (Old) Examination – Extension by two more attempts i.e. May, 2010 and November, 2010
Students are hereby informed that the Council of the Institute of Chartered Accountants of India, having due regard to the concerns of students belonging to Final (Old) stream, has decided to extend the Final (Old) Examination by two more attempts namely May, 2010 and November, 2010



Students concerned may note that the Council has made it clear that no further extension will be granted under any circumstances.

Tuesday, October 27, 2009

Affidavit must for gift in kind, over Rs. 50,000, from kind

t must affirm that donor is related to donee

New Delhi: From now on, when you get a gift in kind, valued at more than Rs. 50,000, from your parents or other relatives, make sure you have a sworn affidavit declaring the donor your kin.

The Central Board of Direct Taxes has ruled that any such gift will be taxable for the donee unless it is from relatives or given during occasions such as marriage or by way of inheritance.

On-the-spot verification

“The donee has to get an affidavit affirming the donor to be his mother, father, brother, sister or any other relative so that at the time of claiming exemption under the new arrangement, the income tax assessment officer can have an on-the-spot verification,” a senior IT official said.

An individual could preferably get one affidavit listing all gifts taken in the entire assessment year from different relatives or the same kin. The affidavit would save IT assessees the hassle of proving that the gifts, movable and immovable, were received or inherited from a relative residing in any part of the world. It would also establish the donee’s relationship with the donor, the official said.

The CBDT on September 30 notified that “with effect from October 1.... any gift in kind, being an immovable property or any other property, the value of which exceeds Rs. 50,000, will become taxable in the hands of the donee, being an individual or a Hindu Undivided Family (HUF), as income from other sources...”

The department will not tax gifts received from a relative on the occasion of marriage of the donee, under a will or by way of inheritance, in contemplation of the death of the donor, from any local authority as defined in Section 10(20) of the Act, from any fund or trust established under Section 10(23C) and from any trust or institution registered under Section 12AA.

Assesses will have to file income tax dues on the value of the gift and disclose its taxable value in the returns for the assessment year 2010-11.

Under the IT Act 1961, a relative is defined as a spouse, brother or sister, brother or sister of the spouse, brother or sister of either of the parents, any lineal ascendant or descendant and spouse of any of the relatives.

Tuesday, October 20, 2009

Monday, October 12, 2009

Free access to ATMs of other banks closes on Thursday

MUMBAI: There would be limits to one's freedom to walk into any bank's automated teller machine from Thursday as third-party ATM usage would carry a cap on the withdrawal amount and the number of transactions each month. From October 15, a customer can take out a maximum of Rs 10,000 per withdrawal from ATMs not owned by the bank in which he has an account, and the number of such transactions would be limited to five a month. In August, the Reserve Bank of India (RBI) had asked banks to impose the restrictions on third-party ATM usage from mid-October. The step followed recommendations by Indian Banks' Association (IBA), an industry lobby. IBA had submitted its recommendations to the central bank last July citing financial burden on banks due to a large number of third party usage and small-ticket withdrawals, resulting in high interchange expenses for banks. Going by the IBA guidelines, a savings account holder may get five free third-party transactions a month and could be charged from sixth onwards. However, current account holders might not get any free third-party usage. The short-lived freedom of using ATMs of other banks, for services like cashwithdrawals and account enquiries, without being charged for the same, was brought in force by the RBI on April 1, just over six months back.