• CENTRAL BOARD OF DIRECT TAXES

Clarification from file No. 275/192/2009-IT (B) Dated 09.02.2010 - Clarification regarding deduction in respect of contribution to pension scheme under Section 80 CCD - matter reg

The Central Board of Direct Taxes has clarified that in accordance with the provisions of Section 80 CCD, deduction in respect of contribution made by an individual in the previous year to his account under a pension scheme notified, is allowed in computation of his total income - (a) in the case of an employee, ten per cent of his salary in the previous year; and (b) in any other case, ten per cent of his gross total income in the previous year. It is also clarified that where the Central Government or any other employer makes any contribution to the account of employee for the pension scheme, the assessee shall also be allowed a deduction in the computation of his total income of the whole of the amount contributed by the Central Govt. or any other employer as does not exceed 10% of his salary in the previous year. Salary for the purpose of above section (80 CCD) includes dearness allowance if the terms of employment so provide, but excludes all other allowances and perquisites. However, aggregate limit of deduction under this section (80 CCD) along with Sections 80 C, 80 CCC shall not in any case exceed Rs. one lakh.

• INDIRECT TAXATION

CBEC Excise

Notification No. 01/ 2010 Dated 06.02.2010 - Exemption of Goods specified in the First Schedule and Second Schedule to the Central Excise Tariff Act from excise duty or additional duty of excise

The Central Government has notified that it exempts the goods specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985, other than specified goods, and cleared from a unit located in the state of Jammu and Kashmir from levy of excise duty or additional excise duty as is equivalent to the duty payable on value addition undertaken in the manufacture of the said goods by the said unit.

Circular No. 914/04/2010-CX Dated 16.02.2010 - Regarding leviability of Beedi Cess under the Provisions of Section 3 of Beedi Workmen Welfare Cess Act

The Excise Board has clarified, with regard to the leviability of cess on beedis, that if the beedis are otherwise exempted from payment of Central Excise duty, they are also exempted from payment of beedi cess and if cess has been collected on unlabelled beedis, no further cess is required to be collected, if they are subsequently labelled. This is in accordance with the notification issued by the Ministry of Labour that when cess has been collected on unlabelled beedis, no further cess shall be collected when they are subsequently labelled

CBEC Customs

Circular No. 04/2010 Dated 15.02.2010 - Carriage of Domestic Cargo on International Flights - Regarding

Initially, the facility of carriage of domestic cargo between domestic airports on international flights was extended only to M/s. Air India. Vide present, the Board has decided to allow the facility of carriage of domestic cargo in international flights between two domestic airports to other private airlines as well, subject to fulfillment of certain safeguards so as to prevent any misuse.

Circular No. 02/2010 Dated 09.02.2010 - Import of Frozen Green Peas - Regarding

The Customs Board has directed that all import consignments of frozen green peas should be referred to Plant Quarantine authorities for proper inspection, and clearance should be permitted only after necessary no objection certificate/ phytosanitary clearance etc., has been given by the Plant Quarantine authorities. The same is in accordance with the implementation of the provisions of Phytosanitary requirements under the Plant Quarantine (Regulation of Import into India) Order, 2003.

• RESERVE BANK OF INDIA

RBI DBOD

Circular No. DBOD. No. BP. BC. 74/21.04.172/ 2009-10 Dated 12.02.2010 - Risk weights and exposure norms in respect of bank exposure to NBFCs categorised as 'Infrastructure Finance Companies'

The Reserve Bank of India has clarified banks' exposures to NBFC-IFCs (Non-Banking Financial Companies categorised as Infrastructure Finance Companies) will henceforth be risk weighted as per the credit ratings assigned to these NBFCs by the rating agencies registered with the SEBI and accredited by the Reserve Bank of India.

Press Release No. 2009-20010/1112 Dated 10.02.2010 - RBI Releases Draft Circular on Base Rate for Banks

The Reserve Bank of India has released the Draft Circular on the Base Rate system. Earlier, the Reserve Bank had constituted a Working Group on Benchmark Prime Lending Rate (BPLR). The draft circular is based on the recommendations of the Group as well as suggestions received from various stakeholders to bring changes in the present lending rate system

• TELECOM REGULATORY AUTHORITY OF INDIA

Press Release No. 09/2010 Dated 15.02.2010 - Tariff issues for Cable TV Services in Non CAS Areas - TRAI issues a simplified format in different Indian languages for cable operators having less than 500 subscribers

In pursuance of the Hon'ble Supreme Court order dated 13th May 2009, TRAI has undertaken the exercise relating to tariff for Cable TV Services in Non-CAS areas. Accordingly, TRAI has received representations from some quarters indicating that some small cable operators may not have access to computers and they may be unable to understand the format fully. To facilitate the small cable operators, having less than 500 subscribers, TRAI has issued a simplified version of the format in different Indian languages for small cable operators. All cable operators who have less than 500 subscribers are requested to fill up this format and submit the same.