Tata Balanced Fund announces dividend

Record date for dividend is 04 September 2013 

Tata Mutual Fund has announced 04 September 2013 as the record date for declaration of dividend under the monthly dividend option of Plan A and Direct Plan under Tata Balanced Fund. The dividend amount on the face value of Rs 10 per unit will be Rs 0.25 per unit under each plan.

Evening Bells: Bond yield eases

10-year benchmark federal paper yield closes at 8.60% 

The yield on 10-year benchmark federal paper, 7.16% GS 2023, closed 17 bps down at 8.60% compared with 8.77% at the close in the previous trading session. The total trading volume on central bank's gilts trading platform stood at Rs 19760 crore. 

The bond yields eased tracking improvement in rupee for the second day, witnessing signs of stability. 

The scheduled commercial banks borrowed Rs 39984 crore from RBI against 65 bids submitted at repo window under LAF operation held today. 

The weighted average rate in the overnight call money increased to 10.35% compared to 10.26% on previous session. The call money rate hovered in the broad range of 10.20% to 10.45% with the trading volume of Rs 13823.64 crore. 

The Reserve Bank of India has announced the auction of 364-days Government of India Treasury Bills for notified amount of Rs 5000 crore and the auction of 91-days Government of India Treasury Bills for notified amount of Rs 7000 crore. The auctions will be conducted on 04 September 2013. 

The RBI accepted securities amounting to Rs 6,230.31 crore in OMO purchases held today, against notified amount of Rs 8000 crore. The total offerings by market participants were placed at Rs 21222.50 crore. The cut-off yield for accepted securities was set at 9.09% for 8.20% GS 2025, 9.08% for 8.33% GS 2026, 9.08% for 8.32% GS 2032 and 9.10% for 8.30% GS 2042. 

The G-Sec auction held today saw devolvement on primary dealers under three out of four securities. The cut-off for 7.28% GS 2019 was placed at Rs 90.71, implying a yield of 9.40%. The amount devolved under this security was Rs 688.10 crore. The cut-off for 7.16% GS 2023 was placed at Rs 89.21, implying a yield of 8.83%. This security was fully subscribed. 

The cut-off for 8.28% GS 2032 was placed at Rs 90.77, implying a yield of 9.34%. The amount devolved under this security was Rs 440.35 crore. The cut-off for 8.83% GS 2041 was placed at Rs 94.83, implying a yield of 9.35%. The amount devolved under this security was Rs 1376.49 crore.

Section 194-IA – TDS on Purchase of Immovable Property

Section 194-IA – TDS on Purchase of Immovable Property

1. Person responsible for tax deduction :-

Any person responsible for paying any sum to a resident transferor by way of consideration for transfer of an immovable property (other than agricultural land in rural area) is liable to deduct tax at source u/s 194-IA.

2. Time of deduction :-

At the time of payment or credit, whichever is earlier.

3. Rate of TDS :-

TDS to be deducted @ 1% of the sum paid. However, TDS needs to be deducted @ 20%, if the deductee does not furnish PAN.

4. Threshold Limit :-

No tax is deductible where the consideration paid or payable for the transfer of an immovable property is less than Rs. 50,00,000/-.

5. Other points:-

Provisions of TAN as prescribed u/s 203A shall not apply in respect of tax deducted u/s 194-IA.
Immovable property means any land, building or part of building. Such property may be situated in India or outside India.

TDS provisions of section 194-IA shall apply only if the transferor is resident in India.

 TDS provisions of section 194-IA shall not apply if a person acquires rural agricultural land in India.

6. Online Payment of TDS through challan cum statement on Form 26QB through NSDL Website:-

Tax so deducted should be deposited to the Government Account through any of the authorized bank branches using the e-Tax payment option available at NSDL E-payment within a period of seven days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QB.

                                                                             Steps to Pay Tax Online

Log on to NSDL-TIN website (www.tin-nsdl.com) or Alternatively person seeking payment of TDS on sale of Property can also use the following link - https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp
Under TDS on sale of property, click on the option “Online form for furnishing TDS on property”.

1. Select Form for Payment of TDS on purchase of Property- Click on the option “TDS on sale of property’.
2. Select Financial Year from the drop down for which payment is to be done.
3. Select Tax applicable for which payment is to be done.
4. Mention PAN of Transferee/Buyer
5. Mention PAN of Transferor/Seller
6. Re-enter PAN of Transferee/Buyer
7. Re-enter PAN of Transferor/Seller
8. Provide Complete address of Transferee/Buyer
9. Provide Complete address of Transferor/Seller
10. Provide Complete address of Property transferred
11. Mention the date of Agreement/Booking of property
12. Mention the Total value of consideration (Property Value)
13. Mention if the above payment is done in Lump sum or in Installments
14. Please select the amount paid/credited (Enter the amount paid to the Transferor/Seller)
15. Please enter the TDS rate (Tax rate at which the TDS was deducted by the purchaser at the time of purchase of the property)
16. Please enter the TDS amount to be paid (amount deducted by the purchaser at the time of purchase of the property)
17. On proceed, confirmation page is displayed to verify the details entered
18. If all the above detail including the name displayed (as per ITD) is correct then, click on “SUBMIT” button
19. In case you have made a mistake in data entry, click on “EDIT” to correct the same.
20. On confirmation, nine digit alpha numeric Acknowledgment number would be generated
21. To do the required TDS payment, please click on ‘Submit to the Bank’ button
22. On clicking on Submit to the Bank, deductor will have to login to the net-banking site with the user ID/ password provided by the bank for net-banking purpose.
23. On successful login, enter payment details at the bank site.
24. On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.

Disclaimer: The views expressed in this lesson are for information purposes only and do not construe to be any investment, legal or taxation advice. The lesson is a conceptual representation and may not include several nuances that are associated and vital. The purpose of this lesson is to clarify the basics of the concept so that readers at large can relate and thereby take more interest in the product / concept. In a nutshell, these learnings should be seen from the perspective of it being a primer on financial concepts. The contents are topical in nature and held true at the time of creation of the lesson. This is not indicative of future market trends, nor is Master Mind Financial Advisory attempting to predict the same. Reprinting any part of this material will be at your own risk. Master Mind Financial Advisory will not be liable for the consequences of such action.

Insurers in ops for 3 years can set up foreign branches

Setting up foreign branches is set to become less strenuous for Indian insurers with the Insurance Regulatory and Development Authority (Irda) enabling companies in operation for a minimum three years to set up international branches. Insurance companies said this would offer them a platform to set up offices abroad.

Till now, Irda took decisions on setting up foreign branches on a case- to- case basis. In a set of guidelines, Irda said life insurance, non- life insurance and reinsurance companies should have a net worth of ₹ 500 crore, ₹ 250 crore and ₹ 750 crore, respectively, to be eligible to open branches abroad. The new guidelines have provided a platform to insurers to expand operations abroad, says Amitabh Chaudhry, managing director and chief executive officer (CEO) of HDFC Life. “While insurers would also need approvals in those jurisdictions where they desired to open offices, it is an enabling provision.”

Chaudhry, however, adds companies would not take any immediate decision to open foreign offices. HDFC Life, which has a liaison office in Dubai, is in the process of exploring other markets to expand, he says. Sector experts say developing nations in Asia and Latin America would be the areas insurance companies would look at for expansion. According to Roopam Asthana, CEO and whole time director of Liberty Videocon General Insurance, it is an interesting option for companies. “Countries like Sri Lanka, Bangladesh, Bhutan and Nepal have a synergy of operations in insurance, with that of India. This would present a good opportunity, when, coupled with local regulations, governing insurance in those nations.”

Life insurers see marginal rise in new business premium

Life insurance industry has seen a marginal increase in new premium collection for the month and period ended April 2013. As per the monthly data from Insurance Regulatory and Development Authority ( Irda), life insurers collected total premiums of ₹ 4965.37 crore for April, seeing a 0.57 per cent rise over same period last year. Interestingly, while private insurers saw a 18.5 per cent rise in overall new premium collection, Life Insurance Corporation of India ( LIC) saw a 4.7 per cent fall.

Private life insurance industry collected new premiums of ₹ 1333.67 crore for the period in individual and group segments. LIC on the other hand, collected new premiums of ₹ 3,631.72 crore for April 2013 as compared to ₹ 3,811.72 crore in April 2012. On the general insurance side, non- life insurance companies saw a 22.01 per cent rise in premium collection for April 2013. General insurance companies collected premiums of ₹ 7,890.40 crore for the period, as against ₹ 6,467 crore in April 2012.

Public general insurers contributed ₹ 4245.52 crore to the kitty, seeing a 15.1 per cent rise over same period previous year. Private general insurers contributed ₹ 3644.89 crore and saw a 31.1 per cent rise in premium collection over same period last year. 

source: BS