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IRDA suspends sale of universal life policies

October 22nd, 2010

The Insurance Regulatory and Development Authority (Irda) has suspended sale of universal life policies, which were being promoted as an alternative to unit-linked insurance plans, from October 23.

Sales have been suspended until the final guidelines for ULPs are issued. Irda said it had received several complaints on the sale practices of the insurers regarding ULP. “After examining the complaints, the authority is satisfied that the universal life products need a better regulatory framework for protecting policyholders’ interests,” Irda said.

In a draft issued late evening, the regulator defined the Variable Insurance Product, widely known as universal life policies, as life insurance products that provide death and maturity benefits equivalent to the

RBI Reference Rate for US $ and Euro – 22nd October 2010

October 22nd, 2010

The Reserve Bank of India’s Reference Rate on October 22, 2010

for the US Dollar is Rs. 44.46

for Euro is Rs. 62.07

The corresponding rates for the previous day (October 21, 2010) were Rs. 44.36 and Rs. 61.95 respectively.

Kaun Banega Crorepati winners does not take the entire winnings home

October 21st, 2010

Guidelines for valuing prizes are hazy, read the terms and conditions carefully

With Kaun Banega Crorepati 4 going on air last week, diehard fans of Amitabh Bachchan have yet another opportunity to meet him. In addition, many stand a chance of becoming millionaires overnight. The only glitch is that the winner does not take the entire winnings home.

Under Section 194B of the Income Tax Act, 30 per cent tax is deducted on any prize money in excess of Rs 10,000 and other winnings from games, lotteries etc. This is deducted at source (TDS). Surcharge at the rate of 10 per cent is also payable. A two per cent education cess is payable on the tax plus surcharge amount.

The good news is that you are not responsible for managing the liability. “The onus of depositing TDS is on the payer (the channel). It will deduct TDS and pay the winner the net amount. It will also issue the winner a TDS certificate,”

Infrastructure bonds an attractive option for tax gains

October 21st, 2010

Infrastructure bonds are an attractive option for those in the high tax bracket.

Infrastructure bonds are the latest avenue for investors looking to park funds in debt instruments. A number of companies have announced plans to raise money through this route. While IFCI has already raised Rs 100 crore, this is the first time after additional tax breaks for investments in infrastructure bonds were announced that an amount over Rs 4,000 crore is being raised.

While IDFC and L&T Infrastructure issues are open for subscription, PFC and LIC are the next in line. Here’s a snapshot of what these issues have in store for investors.

Nine IT firms shortlists for UIDAI project worth Rs 2,000-cr deal

October 21st, 2010

The Unique Identification Authority of India (UIDAI) has shortlisted nine information technology service companies for the managed services provider (MSP) contract. The contract is estimated to be worth around Rs 2,000 crore.

Tata Consultancy Services, IBM, Wipro, HCL Technologies, Mahindra Satyam and Tech Mahindra are some of these. These companies will first give their proposals for implementing and managing the central information data repository of UIDAI. The bidding process will start soon thereafter.

The selection of the services provider will be crucial, as the firm will be responsible for the roll out of the 600-million Aadhaar numbers by 2014. More, the MSP vendor will have to provide a system and be involved in the de-duplication

GST still a distant dream

October 21st, 2010

It appears there is no end in sight to the differences between the Centre and the states over the model required for introduction of the Goods and Services Tax (GST). The next meeting of the Empowered Committee of the State Finance Ministers in Goa may not give any impetus to the talks on GST, which suffered a setback in June when the Centre came out with a Constitutional Amendment draft for GST.

The contentious issue of Constitutional Amendment is again on the agenda for the meeting on October 29, but the states opposing the draft Bill have not softened their stance since the last meeting in Delhi on September 20. There is no consensus even among the states on all three areas – Gujarat GST model, Article 279A and 279B of the Constitution, and entry tax – which will be discussed in the next meeting.

West Bengal, Madhya Pradesh and Gujarat have given three different models of GST, but the Centre has found that

IRDA suspends sale of universal life policies

RBI Reference Rate for US $ and Euro – 22nd October 2010

The Reserve Bank of India’s Reference Rate on October 22, 2010

for the US Dollar is Rs. 44.46

for Euro is Rs. 62.07

Kaun Banega Crorepati winners does not take the entire winnings home

Infrastructure bonds an attractive option for tax gains

Nine IT firms shortlists for UIDAI project worth Rs 2,000-cr deal

GST still a distant dream

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