FM hints at more tax reliefs

Although the finance minister said that "hours and hours of my time has been taken to convince me why neither sweets nor salted products could be taxed. Similarly why some products could not be subjected to excise and some other to customs duty." But he appeared to be in a mood to yield on the issue of taxing sweets and namkeens by pointing out that the makers have drawn wide support from the MPs.

The other important issues which the minister was likely toaddress while replaying to the debate were with regard to withholding tax on external commercial borrowings, taxing of gifts as income, exemption of income of infrastructure capital funds, determination of capital gains on the basis of circle rates for stamp duty and valuation of inventory.

The minister would also clarify on the issues relating to the status of the "not ordinarily resident" and exemption of income of educational and medical institutions.

The finance minister has also stated that he had received a number of suggestions from MPs, the standing committee of Parliament, trade associations, various chambers of commerce, individual tax payers and media on the taxation proposals and promised to respond to them at the time of the replying to the debate on finance bill.

The finance minister had earlier rolled back the hike in petrol prices and urea prices.

FM clarifies confusion on permanent account number
NEW DELHI: Finance minister Yashwant Sinha has said that those not havingPermanent Account Number (PAN) cards would "not be stopped from doing anything". Talking to newsmen he said not having a PAN did not mean that one would not be able to open a bank account or apply for a telephone connection.

He added that "we only want that all the income tax payers should quote their PAN numbers in transactions" mentioned in the budget. "Those who have not been allotted PAN numbers can quote General Index Register (GIR) number which is given to all tax payers," he said.

The minister admitted than many PAN applications were pending with the income tax department as there was heavy rush for getting the cards. He hoped that a large number of applications would be cleared before September 30. The provisions relating to quoting of PAN or GIR numbers for transactions, as mentioned by Sinha in his budget speech would come into force from August 1, 1998. He had mentioned it would be obligatory for assessees to quote their PAN or GIR numbers in respect of certain high value transactions such aspurchase and sale of immovable property, motor vehicles, transactions in shares exceeding Rs 50,000, opening new bank accounts, fixed deposits of more than Rs 50,000, applications of allotment of telephone connection and payment to hotels exceeding Rs 25,000.