Celebrations cut short, extra 1% EPF interest to be taxed THE government’s surprise gift for workers isn’t much of a gift after all. The labour ministry has hiked the employees’ provident fund, or EPF, rate to 9.5%, but a finance ministry notification says that anything in excess of 8.5% will be taxed. Labour Minister MallikarjunKharge had declared a 9.5% bonanza on provident fund deposits on September 15 .
But the Central Board of Direct Taxes had notified a tax-free PF rate of 8.5% for 2010-11 — effective from September 1. This means that the 1% extra income (or Rs 1,700 crore) that the labour ministry has projected as a gift to the workforce, would be fully taxable. Even if EPFO could deduct tax at source ,it would also have to give workers aForm 16 statement and acute problem will be faced by the Employees’ Provident Fund Organisation – which manages 5 crore PF accounts.
EPFO board members, however, are confident that the Income tax department would reconsider its decision.
Don’t quit mining, give options to tribals.
FINANCE minsiterPranabMukherjee has favoured a balanced approach on the issue of displacement of tribals due to mining projects.
He said that “Answer does not lie in the companies stopping mining activities. Answer lies in providing alternatives to those displaced... in what form we can compensate them and make them beneficiary of economic development,”
A Group of Ministers (GoM), headed by the finance minister, is deliberating a proposal to give tribals a part of profits in mining projects.
The GoM has proposed that 26% of the net profit of mining projects should go to the displaced tribals and other affected locals but differences in the government remain. Coal Minister SriprakashJaiswal on Friday said that the proposal on 26% profit sharing by mining companies should be applied to all public and private companies.
Indian retailers chase global footprint
COO — watches at Titan Industries, Harish Bhat, says “ We intend to be one among the top three watch brands across these countries by 2015,” . Titan has grown more than 75% in Vietnam, where it is now chasing Seiko and Casio as the third largest watch brand by market share.
VLCC has set up 18 centres predominantly in the UAE. It intends to boost this with 10 centres this fiscal year across Qatar, Bangladesh, Sri Lanka, Malaysia and Singapore, among others.
Pranab launches pension scheme for unorganised sector.