ECONOMY AFFAIRS DECEMBER 2009

ECONOMY AFFAIRS DECEMBER 2009

• The Central Board of Direct Taxes (CBDT) has notified the new rules, called the ‘Income-tax (13th Amendment) Rules, 2009’ will come into force on April 1, 2009 which shall replace the already abolished Fringe Benefit Tax (FBT). Apart from conventional perks such as accommodation and conveyance, other benefits such as holiday/vacation travelling, free food and non-alcoholic beverages provided by the employer, gift or vouchers received by the employee on ceremonial occasions, reimbursements for club membership and tour allowances would also come under the ambit of the new income tax valuation norms.
  
• The Harvard Business Reviewrecently ranked CEOs of large public traded companies in a study conducted over 2000 CEOs worldwide. Mukesh Ambani, who heads Reliance Industries Limited, is the only Indian to be ranked among the 100 best performing CEOs in the world. He was ranked 5 in the world. Apple Inc’s CEO Steve Jobs was ranked 1 and Yun Jong-Yong, CEO, Samsung was ranked 2nd. Mukesh was ranked 2nd top Emerging Market CEO in the world and K.V. Kamath of ICICI Bank was ranked 9th Emerging Market CEOs.
  
• The Board of Approval for Special Economic Zones (SEZs) gave formal approvals to six new SEZs: a solar PV (photovoltaic) SEZ of Lanco Solar Pvt. Ltd. at Ramdaspur in Cuttack district (Orissa); three information technology (IT) SEZs by the Delhi State Industrial and Infrastructure Development Corporation at Baprola village (Delhi); the Uralungal Labour Contract Cooperative Society Limited at Nellikode village in Kozhikode (Kerala) and Empire Industries at Ambernath in Thane district (Maharashtra). Similarly, a bio-tech SEZ by Veritas Infrastructure Development at Alibaug in Raigad district (Maharashtra), and a gems and jewellery SEZ by the Delhi State Industrial and Infrastructure Development Corporation at Baprola village in Delhi were approved.
  
• The Central Government is implementing the generation-based incentive (GBI) scheme for grid-interactive wind powerproducers and gives incentives worth Rs.380 crore to promote wind power generation. The government has launched a special programme to generate more wind power and attract investments, domestically as well as globally, to give boost to cleaner and renewable energy sector.
  
  The scheme would be scaled up after a review of its performance in the remaining period of the XI Plan (2007-12).
  
• Of 18 Navaratna mega public sector undertakings, ONGC, SAIL and NTPC got greater financial and operational autonomy after the government accorded the Maharatna status to these firms to help them emerge as global giants. The company has to get a three-year track record of annual net profit of over Rs 5,000 crore, net worth of Rs 15,000 crore and turnover of Rs 25,000 crore to get Maharatna status.
  
• Vijay Kelkar, Chairman of the 13th Finance Commission submitted its report to President Pratibha Patil on sharing of Central taxes between the Union and State governments.