Enter Keyword and Search





Tuesday, November 11, 2008

Raksha Udyog Ratnas (RUR)

with 2 comments
(RUR) - 12 leading private sector companies:
Private sector companies engaged in the production of military hardware would no longer get the promised defence Raksha Udyog Ratnas (RUR) status.
In a move that has rendered the RUR redundant, the defence ministry announced the removal of the licence system, necessary for the production of military products. The move is expected to create a ‘level playing field’ between the privatedefence companies and the defence public sector units. The government had chosen around 12 players from its original list of over 40 applicants. According to industry sources, the 12 included,
1. Ashok Leyland
2. Bharat Forge
3. Bharat Heavy Electricals
4. Godrej and Boyce
5. HCL Technologies
6. Infosys Technologies,
7. Kirloskar
8. Larsen and Toubro
9. Mahindra and Mahindra
10. Tata Consultancy
11. Tata Motors and
12. Tata Power
However, the government decided to shelve an official announcement on the conferment of RUR status to 12 leading private sector companies. The defence acquisition council, headed by defence minister AK Antony, was to formally clear and make public their names. A move to give grant RUR status to 12 private sector companies would have made them eligible, along with blue chip defence PSUs, to receive technology transfer and part of expected defence off sets from foreign companies, as part of the deals which India would sign with other countries. It would also include a substantial government investment of up to 80% for design, development and manufacture of defence products, including fighter aircraft, tanks and warships. These companies would have also been treated on a par with defence public sector enterprises such as
Hindustan Aeronautics Ltd,
Bharat Electronics, Bharat Earth Movers Ltd,
Bharat Dynamics,
Goa Shipyard,
Mazagon Docks and the ordinance factories and they could bid for defence contracts. In May 2001, the government had permitted a 100% private participation in defence production, as also foreign direct investment of up to 26% of the host company’s equity. However, private firms could produce defence equipment only after obtaining a licence from the defence ministry. Now, under the new policy, the companies need only one licence.

INCOME TAX 2008-09

with 0 Comment
INCOME TAX CALCULATION FOR THIS YEAR 2008-2009:
Taxable Income Slab (Rs.)Rate (%)
Up to 1,50,000Nil
Up to 1,80,000 (for Women)Nil
Up to 2,25,000 (for RI of 65 years or above)Nil
1,50,001 - 3,00,00010
3,00,001 - 5,00,00020
5,00,000 upwards30*
*A surcharge of 10 per cent of the total tax liability is applicable where the total income exceeds Rs 1,000,000 Note :Education cess is applicable @ 3 per cent on income tax, inclusive of surcharge if there is any. The aggregate amount of deduction under sections 80C, 80CCC and 80CCD shall not exceed Rs. 1,00,000 (Section 80CCE)
House rent paid for own residence: (Section 80GG)
That will be entitled to a deduction in respect of house rent paid
by an employee in excess of 10 per cent of his total income,
subject to a ceiling of 25 Per cent thereof or Rs. 2000 per month,
whichever is less. The total income for working out these percentages
will be computed before making any deduction under section 80GG.

Tax concessions make home loans more attractive:
Repayment of the principal amount of a home loan, maximum deduction of
Rs.1 lakh (Rs 1,00,000) is allowed per year.
The entire amount of interest paid is allowed as deduction of
Rs.1.5 lakh (Rs 1,50,000) is allowed. 

Below the simple calculation of Annual Payment for those employees
having Basic Pay from Rs.9,840 to Rs.18,000 and
their approximate taxable amount even if they saved Rs one lakh,
additionally not to taken any extra income sources for claculating...
Basic PayGrade PayIncome P.M.*Income P.Y.*Tax - 1,50,000.*Tax - 2,50,000.*
744024001622219466944669NIL
774024001666119993749937NIL
804024001710020520555205NIL
834024001753921047360473NIL
864024001797821574165741NIL
894024001841722100971009NIL
924024001885622627776277NIL
954024001929523154581545NIL
837028001817221806668066NIL
871028001867022403574035NIL
905028001916723000480004NIL
939028001966423597385973NIL
973028002016224194291942NIL
1007028002065924791097910NIL
104102800211572538791038793879
93004200215812589721089728972
971042002218126616711616716167
1012042002278027336212336222362
1053042002338028055813055830558
1094042002397928775313775337753
1135042002457929494814494844948
1176042002517930214315214352143
1217042002577830933815933859338
1258042002637831653416653466534
1299042002697732372917372973729
1340042002757733092418092480924
1381042002817733811918811988119
* approximately 
Monthly Payment = Basic Pay + Grade Pay + D A + H R A + T A

Yearly Payment = 12 x Monthly Payment
(Additional Income to be added : SPL allowances, Over time allowance, PWS profit, NDA, NSB, Incentive etc.)

Housing Loan is only the source to reduce 
the taxable amount,
eventhough the interest of housing loan is flucuated.


SECTION – 80C
The single most important provisions for investers.
The governement in order to encourage savings, gives tax deduction
to particualr financial invetments as decided in section 80C of the Income Tax. 
These investments are often referred to as 80C investments.One can invest 
up to Rs 1 lakh in approved schemes and save taxes up to Rs 30,000.
That is, in all instruments put together and the entire amount of 
Rs one lakh will be deducted from your taxable income.
SectionInvestmentsAmountParticulars
80CNSC, Notified Bank Deposits, Post Office Time Deposits,EPF, PPF, ELSS, LICCannot exceed Rs.1 lakhPayment has to be made before 31 March 2008
80CCCPension Plans of life insureresCannot exceed Rs.1 lakhPayment has to be made before 31 March 2008
80DMedical Insurance Policy-Any member of Family (HUF)For Senior Citizens up to 20,000 Others Rs.15,000Paymet should be made through a Cheque
80DDMedical Treatment for Disability DependantRs 50,000 for a person with disability Rs 75,000 for severe disabilityMedical Certificate should be made
80DDBMedical Treatment for Specified Diseases (Cancer,AIDS,Neurological etc.)Rs.40,000(Age of below 65) Rs.60,000(Age of 65 and above)Certificate in Form No.10-I to be submitted
80EPayment of Interest on Loan for Higher StudiesDeduction available on the total interest amount of Education LoanOnly for Eight Immedaitely Succeeding assessment years
80GDonations to certain funds and charity50 or 100 percent deduction on the entire donated amountNil
80GGRent paid for Residential purposeExcess of actual rent paid over 10 percent of GTI or 25 percent of GTI or Rs.2,000 per month, whichever is the lowestShould not be getting House Rent Allowance
80UExpenses incurred on self, if disabledRs 50,000 for a person with disability Rs 75,000 for severe disabilityMedical Certificate should be made




Disclaimer:As and when orders amending the rules are published by the Government, the amendment orders will be published in our blog immediately. Readers are requested to refer to the source link is given at the end of the post. All efforts have been made to ensure accuracy of the content on this blog, the same should not be construed as a statement of law or used for any legal purposes. 90paisa accepts no responsibility in relation to the accuracy, completeness, usefulness or otherwise, of the contents. Users are advised to verify/check any information with the relevant department(s) and/or other source(s), and to obtain any appropriate professional advice before acting on the information provided in the blog. Links to other websites that have been included on this blog are provided for public convenience only. 90paisa is not responsible for the contents or reliability of linked websites and does not necessarily endorse the view expressed within them. We cannot guarantee the availability of such linked pages at all times.