Starting next month, Microsoft Office 2007 suite will be available on rent for $70 per year. Called Microsoft Equipt, this consists of Office Word, Excel, PowerPoint, OneNote and Live OneCare.

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1. Interest on RBI 8% Savings Bonds, 2003 though taxable was till now exempted from TDS since they are Govt. securities. Effective 1.7.2007, any interest over Rs 10,000 in a financial year from such bonds would be subject to  TDS @ 10%.

2. The threshold limit for deduction of TDS by banks and cooperative banks in respect of ‘interest other than interest on securities’ paid to the depositors has been raised from Rs.5000 to Rs.10000 w.e.f. 1.06.07. The amendment applies only where the payer is a banking company or a co-operative society engaged in carrying on the business of banking or a post office in respect of notified schemes. In other cases, the threshold limit shall be retained at Rs. 5,000. Similarly in such cases, the returns, Form 15G/15H shall be filed in accordance with the increased limit.

3. W.e.f. 1.06.07, the payment by individual/HUF having turnover exceeding the limit prescribed in Section 44AB in respect of payment to contractors shall be subject to TDS.

4. TDS shall be deducted at the following rates w.e.f. 1.04.07:

(a) Payment to Contractors @ 2.266% if surcharge is applicable, otherwise the rate will be 2.06%.

(b) Payment to Sub-Contractor @ 1.133% if surcharge is applicable, otherwise it will be 1.03%.

(c) Payment of Interest -In case of non-corporate payee @ 11.33% if surcharge is applicable and otherwise 10.30%. In case of corporate payee @ 22.66% if surcharge is applicable and otherwise 20.60%.

(d) Payment for Professional/Technical Services/Commission/ Brokerage - From 01.04.2007 to 31.05.2007 @ 5.665% if surcharge is applicable otherwise 5.15%. From 01.06.2007 onwards @ 11.33% if surcharge is applicable, otherwise 10.30%.

(e) Payment of Rent for Land and Building - If paid to an individual or HUF @ 16.995% if surcharge is applicable otherwise 15.45%. If paid to a person other than individual or HUF @ 22.66% if surcharge is applicable otherwise 20.60%.

After being the leader in Indian apparel industry, Raymond has ventured into the women western wear market by launching a collection under its flagship ColorPlus brand.

With the proportion of working women increasing, especially in metros, the Indian western womenwear market is growing at 20% and is worth Rs. 800 crore. 

Raymond expects to open 175 Colorplus stores in next 3 years and expect Rs.150 crore revenue from womenwear segment. It will also launch a kids wear segment under ColorPlus Kids soon.

The share of apparel in overall business of Raymond is still just 6% and as such the company is diversifying into new categories and revamping existing ones.

Meanwhile, its joint ventures with foreign companies are not doing that well. Three of the total five are loss making putting strain on company’s bottomline. Also, it has to deal with reducing margins and high rental costs which may affect the growth of its retail stores.

While SEBI is busy framing rules and laws for streamlining the investment in shares, the smart investors manage to find out some or the other way to outdo the norms.

Since PAN has been made compulsory for opening of demat account, the opportunistic investors have been deprived of the benefit of opening multiple accounts to corner more shares in IPO. But the sharp-witted have come out with a new way to address the situation. They have resorted to hiring of demat accounts from those not applying for a particular IPO.

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Estimates show that India’s old age population will increase to 113 million by 2016, 179 million by 2026, and 218 million by 2030. Life expectancy, currently at 77 years could increase to around 80 years by 2020. With the increasing old age population and life expectancy, Reverse Mortgage introduced by Budget 2007, seems to have a potential market in India. This concept, although new in India is very popular in countries like United States, Canada and Australia, while it is in infancy in Europe and Singapore.

Reverse mortgage is a loan given to senior citizens by converting the equity in a house property into an income stream. The scheme involves the borrowers (senior citizens) pledging their house property to a lender (scheduled bank or HFC) in return for a lump sum or periodic payments spread over the borrower’s lifetime. The home owner is not obliged to repay the loan during his lifetime. On his death or leaving the house permanently, the loan is repaid along with accumulated interest, through sale of the house property. Any excess amount will be remitted to the borrower or his heirs. The lumpsum or periodic payments can be utilized by the borrower as per his needs but not for speculative purposes.

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With India having a rich tradition of respect and care for the elders, there is little need to diligently plan for the retirement. It is generally presumed that the extended family would take care of the financial responsibility for the older generation. But now with globalization (new opportunities around the world) and breaking apart of the joint family system, suddenly older Indians have become more responsible for their individual retirement security.

The main criterions to bear in mind while planning for the twilight phase of one’s life are security and stability of returns, liquidity, capital preservation and lower risks. One needs to plan for every need and contingency. Liquidity assumes great significance. With no salary or business income to fall back upon, the portfolio should be designed in such a manner that it provides a cushion for the regular expenses. Bank saving accounts give a nominal interest of 3.5% but they offer great liquidity as money can be withdrawn at any time.

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With the imposition of service tax on commercial rentals by the government, your hopes of opening up a new commercial project on rent will surely burn a finger in the pocket. The additional burden would certainly be passed to tenants as the landlord will not be ready to absorb it. Small traders, businessmen and professionals will feel the pinch as their expenditure will increase thereby decreasing the margins.

Budget 2007 seeks to levy service tax (@ 12.36%) on renting of immovable property for business and commerce. Residential properties including hotels, hostels, boarding houses, vacant land, and land used for educational, sports, entertainment and parking purposes have been excluded.  Similarly, service tax is not applicable on renting to or by religious body and to educational body, other than commercial training and coaching centres. Also, where the rent contract is partly used for commercial and partly for residential purpose, the service tax would be levied on the total value of the contract.

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The Indian Real Estate sector is facing a downturn at the moment, after most analysts comparing the rise in property prices to the dotcom boom of 2000, the question now on everyone’s mind is what next lies ahead? With the coming IPO of Dehi based real estate king DLF, the sector is once again in the news.

But India’s real estate market is certainly not in good shape - business is drying, supply is increasing, increasing interest rates and prices have affected plans for middle class to take a property, developers are facing concern due to RBI and SEBI measures preventing them from raising and deploying funds in their projects. Moreover, supply is increasing, as is evident from the huge number of flats and malls being built, and the view echoed by everyone is that property prices are set to fall.

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