12 THE NAVHIND TIMESTHurSDAY, AprIl 16, 2015

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BY TENSING RODRIGUESIn his recent budg-

et, the Finance Minister has proposed an addi-tional tax deduction for contributions to NPS up to ` 50,000. Is it ad-visable to invest in NPS now?

Jaime FernandesFirst let us place this

additional tax saving opportunity in proper context. Under the ex-isting tax provisions in-vestments and payments become eligible for de-duction from the taxable income under three sec-tions: 80C, 80CCC and 80CCD. Section 80C cov-ers deduction in respect of life insurance premia, deferred annuity, con-tributions 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 cov-ers deduction in respect of contribution to pen-sion 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 com-ment 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 govern-ment 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 sec-tions 80C or 80CCC; the contributions made by the employer to life in-surance, provident fund, or other pension funds, are not eligible for de-duction; why such a ben-efit to NPS only? Now the government has given

additional deduction for contributions to NPS. This makes it amply clear that the government is giving special treatment to NPS, and veer-ing away from creating a level playing field for all similar prod-ucts. This is a patently wrong policy.

Now, let me answer your query Is it advisable to invest in NPS now?. NPS is Exempt-Exempt-Tax product. What it means is that when you contribute to it, you get a tax benefit if you con-tribute ` 2,00,000, that much of your current in-come becomes tax-free. When you earn interest on the contribution (as long as it remains there), you pay no tax on that income (on the interest). But when you withdraw from the accumulated balance, as pension, you pay tax. If you with-draw as a commutation too, you pay tax on the amount withdrawn; it gets added to your taxable income for that year. So the tax that you had saved paying, you pay then. So NPS offers you an oppor-

tunity to postpone tax, rather than save tax. One

argument that is usually ad-vanced in case of E-E-T is that when you start receiving pen-sion, your in-come is likely to be low, possibly below the taxa-ble limit. That is a very untenable assumption; in

most of the cases, it will not hold good. In the case of commutation it could be really a problem, as suddenly a big sum would get added to your taxable income for that year; so it would be like getting caught in a cloudburst.

Now what is the situ-ation in case of 80C prod-ucts? PPF is Exempt-Exempt-Exempt product that you pay tax at no stage. ELSS too is E-E-E. NSC too is E-E-E, taking into account the fact that the interest from NSC is taxable but also eligible under 80C. Insurance premium I would not consider as a tax saving alternative (you should buy insurance for protec-tion of your dependents, not to save tax), but even that is E-E-E, subject to certain conditions.

New pension scheme

Electricians from the Manila Electric Railroad and Light Company (MERALCO) maintain a secondary trans-mission line in Manila on Wednesday. MERALCO is the largest electric distribution utility in the Philippines, a 111-year-old company that serves more than five million customers. AFP

India Inc seeks further cut in interest rates UNI

NEW DELHI: Encouraged by drop in inflation, indus-try chambers on Wednes-day 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 in-flation falling significantly, the countries macro-economic 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 Whole-sale 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 revi-sion in the repo rate in June 2015 or perhaps ear-lier, Jyotsna Suri, presi-dent, FICCI said.

in shortHonda unveils four new bike modelsPANAJI: 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.

Knight Frank collaborates with Rolls-Royce, Anmol JewellersMUMBAI: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 GJFMUMBAI: 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 brandMUMBAI: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.

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.

Audi launches updated Q5PANAJI: 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 four-wheelers is estimated at 350 cars annually. NT

Sensex plunges 245 pts, ends below 29K markPTI

MUMBAI: The benchmark BSE Sensex on Wednesday fell 245 points to end be-low 29,000-mark, mainly bogged down by last-hour selling in healthcare, capi-tal 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, continu-ing the deflationary trend for fifth month in a row, inflation touched a record low of (-)2.33 per cent in March on cheaper manu-factured goods and food items, prompting industry

to renew its demand for further rate cut by the Re-serve 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 be-tween 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 big-gest losers included, Tata Motors, Infosys, Axis Bank, Sun Pharma, M&M, HDFC Bank and BHEL.

-244.75

KBK graphicsInfo

Intra-day on April 15 Change -244.75 (-0.84%)

-3.43

-2.65

-3.26

-2.70

BHEL

M&M

TataMotors

Wipro

AxisBank

9 12 13 1610 11 14 15

-2.81

March 2015

TopGainers %

TopLosers

%

2 4 9 11 13 17 19 23 25

28,000

28,500

29,000

29,500

30,000

27,000

27,500

27 31

BSE SENSEX

April1

29,459.14

7 9 13

Open:29,087.25

Close:28,799.69

Previous close:29,044.44

28,700

28,800

28,900

29,000

29,100

15

28,799.69

3.32

1.19

1.76

1.23

SSLT

ONGC

SBI

ITC

TataPower

1.59

Top PSUs sign tech pacts with global firmsNEW DELHI: Leading pub-lic sector firms, including BHEL, Instrumentation Ltd and HMT have firmed up as many as six MoUs with top global companies from Germany, Switzerland, Rus-sia and Bulgaria for scaling up Indian manufacturing in high-tech areas such as pre-cision 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 In-dia, the countrys apex en-gineering organisation.

The MoUs included tie-ups between BHEL and Russian Joint Stock Company, INTMA for up-

coming projects in Russia and Kazakhstan, REIL and Milkotronics Ltd, Bulgaria for manufacturing milk analyzers in India, Instru-mentations Ltd and KE Kauer Engineering, Ger-many 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 En-itGmbH, Germany for total engineering solutions.

Secretary in the De-partment of Heavy In-dustry Rajan Katoch an-nounced 250 million dollar R & D project to develop Advanced Ultra Super Critical Technology for power generation. UNI

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, presi-dent 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 rev-enue 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 en-trepreneurship in Israel we need to be here.

Under the strategic

relationship, Tech Mahi-ndra will be responsible for R&D and customer services while Com-verse 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 con-glomerate, is the latest sign of booming ties be-tween the countries since Indian Prime Minister Narendra Modi came to power last year.

Tech Mahindra executive vice chairman Vineet Nayyar said the companys global activi-ties will be concentrated in three countries - India, the United States and Israel.

Tech Mahindra, which employees over 98,000 people in 51 coun-tries, 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 ac-

cess to world class talent, Vyas said. We have a big presence in Europe, India and the US. (But) Is-rael 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 par-ent Lightbridge Commu-nications 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 busi-nesses with equity from Tech Mahindra.

Tech Mahindra teams up with Comverse

AFP

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 op-erating system.

On the first count, the Commission said it had sent a formal State-ment of Objections to Google, charging it with systematically favouring its own comparison shop-ping 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 state-ment said. If found at fault under EU anti-trust rules, a company faces a fine of up to 10 per cent of its an-nual sales -- in Googles case, $66 billion in 2014.

The Commission said it would continue to ex-amine three other areas of concern -- copying of ri-vals web content, exclu-sive 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 Goog-les conduct as regards the mobile operating system Android.

The investigation will focus on whether Google has entered into anti-competitive agree-ments 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, tab-lets 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 anti-competitive 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 re-mained open to an amicable settlement and she called on Google to take every op-portunity to discuss the is-sues with Brussels.

EU charges Google with market abuse, to probe Android

Cap on withdrawals through ATM is policy decision: RBIPTI

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 bank-ing customers using their ATM cards without being charged, is a policy deci-sion taken in public inter-est.

A bench of Chief Jus-tice G Rohini and Justice Rajiv Sahai was also in-formed by RBI that the ATM facility was made available with a view to reduce cash usage and in-crease electronic transac-tions in the country.

The court was hear-ing a public interest litiga-tion (PIL) filed by advocate Swati Aggarwal, seeking directions to allow bank-ing customers to make an unlimited number of transactions free of any charge on their own bank ATMs.

Indias Central Bank-ing Institution, which con-trols the Monetary Policy of the Rupee, however, opposed the PIL, saying the petition is not main-tainable and is liable to be dismissed, as RBI has not violated any laws of the land.