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How the proposal to tax interest income will affect NRI?

By Jose Chacko*

MUSCAT - August 22 2004 The latest Finance Bill(now before the parliament) has done away with the exemption available to NRI's in respect of interest on NRE deposits and FCNR deposits with banks with effect from 1st September,2004. Which means the interest accrued after September 1st 2004 will be included in the taxable income. Banks are required to deduct income tax on NRE and FCNR deposits of NRIs at the rate of 20 % + applicable surcharge and 2% Education cess on this tax payable. If it is a foreign bank the rate will be 30% plus.

An NRI is not required to pay any income tax if his taxable income is not more than 50,000/-. In this case an NRI has to file his return of tax for getting the refund of tax deducted by banks. Since the requirement of issuing the TDS certificates by the deductor is abolished (w.e f. 01.04.2005), deductee will get the credit on the basis of the annual statement issued by the prescribed income tax authority or the agencies authorized by that authority. This annual statement will be prepared on the basis of quarterly statement sent by the tax deductors.

It is obvious that such consolidation will be done on the basis of PAN(Permanent Account Number) . Even though the non-residents are exempt from obtaining the P.A.N under section 139A(8)(d) of the Income-tax Act, procedurally the Income-tax department will not accept the Returns of Income from any person who has not obtained or applied for P.A.N. All these make it compulsory to get a PAN by every person who want to claim refund. In effect if any person wants a refund of tax deducted by banks, where the tax deducted at source is more than the tax payable, he has to

1. Compulsorily get a PAN number
2. Get the annual statement of tax deducted and paid
3. File the return of income every year.
4. Appear before Tax Authorities in India, if summoned.

For NRIs residing far away and visiting India not very often, compliance of all these requirements will create unwarranted difficulties. In my view, NRIs may not have any objection in paying marginal tax and thereby contribute to the economic development of the nation , but the hardship of preparing accounts, appointing consultants, filing tax return ,await assessment, getting the refund etc are unpleasant surprises for NRIs.

NRIs can ask for a lower percentage of tax deduction or complete exemption of tax , if he is able to get a certificate from the Assessing Officer of his area of residence in India, by satisfying him about source of income and the need to deduct tax at a lower rate or exempt the same totally.

Banks are required to deduct income tax if the interest credited or paid in excess of Rs.5,000/- This makes it compulsory for an NRI to file the Return of Income even though he has no taxable income. TDS collection by banks will be shown in Table A and the tax implications of various levels of income will be illustrated in Table B, assuming that the only source of income is the bank interest.

* Author is a Muscat based Chartered Accountant who is also the Honorary financial advisor to NRI Federation". He can be contacted through E mail:contact Jose

Telemedicine The Electronic Umbilical Chord

DUBAI - June 12, 2004 Your eyes are scrolled up to a scene where, no matter who you are or where you are, you get the health care you need, when you need it. The electronic umbilical chord which connects the entire healthcare system, come to stay as Telemedicine. The method of distance management in medical and health care not only benefit patients but also medical practioners. With the advancement in information technology, telemedicine has become an integral part of health practice. As a medical approach in its own rights, telemedicine suggests technology based health care delivery across distances.

Telemedicine has been defined as the use of telecommunication to provide medical information and services. It may be as simple as two health professionals discussing a case over the telephone or as sophisticated as using satellite technology to broadcast a consultation between providers in two destinations. Telemedicine generally referred to patient care, while tele-health incorporates variety of health related activities.

Broadly tele-health can be divided into three, some what overlapping categories: telemedicine, education and information. Telemedicine is perhaps the most readily identified and refers to technology mediated patient care at a distance. Providing health care services via telemedicine offers many advantages, mainly in the rural sector. The process of Telemedicine works in two stages, one the primary and next the follow ups. The doctor in the primary telemedicine clinic checks the primary cases and if a follow up needed then refers to the local Telemedicine hub, where specialists are working for the entire territory. Also follow up cases are directly managed by the specialists from the hub itself.

It can make specialty care more accessible to underserved rural and urban population. Video consultation from a rural clinic to a specialist can alleviate prohibitive travel and associated cost for patients. Conferencing also open up new possibilities for continuing education or training for the isolated and the rural health practitioners, who may not be able to leave a rural practice to take part in professional meetings and educational opportunities. The use of tele medicine can cut the cost of health care for those in rural and urban area.

There are two ends in telemedicine, viz, the delivering end and receiving end. The delivering end is called Tele-Referral Centre (TRC) and the receiving end is called Remote Tele-Consultation Centre (RTC). Both the TRC and RTC will be equipped with minimum requirements for the tele-consultation process. In this competitive world of digitization, health care is perhaps the fastest growing area in terms of the exploitation of new technologies. The technological, sociological, cultural and legal issues surrounding telemedicine are waiting to be resolved. One of the great challenges facing telemedicine and tele-health is the global digital divide. Also the available infrastructure is different from one country to another.

There are at rest numerous barriers to the practice of telemedicine. Most of the patient satisfaction studies marks up that the 'hands on interaction 'with patients may become a problem in the doctor-patient relationship. Once the current barriers are maintained telemedicine will likely undergo a sweeping change and transition from its current position. The clinical care through telemedicine- diagnosing, treating and following up with the patient at a distance will likely change as fast as the digit used to perform it.

Telemedicine as a broad umbrella term for the delivery of medical care has reached around the world and now health professionals can communicate faster, wider and directly with clients and colleagues, no matter where they are. It is many times interpreted as an alternative to the present healthcare practice and a solution to various problems faced by the health scenario. It endeavors to keep the patient home, in the family comfort. There is no doubt that the field of new medical care has undergone progressive levels of maturation as technology re-warms.

About the Columnist

Mr. Ginu George, Journalist and Media Researcher is currently based in the Dubai. His focus is Technology, Advertising and Business. He prepared many exclusive stories for Media One, a media Research organization based in Cochin, Kerala, India. George has worked with leading Dailies and News Channels and was the Technical Editor for New Media Journal. He writes columns on Business, Science and Technology, Automotive, Health and New Media. The founder Editor and Publisher of magazines Ezhuthu and Ulsaram from Kerala. He has also been the founder of Chalana, a social organization for contemporary thinking youngsters which tries to resolve social problems in Kerala Community.

Ginu George finished his MPhil in Futures Studies with specialization in Media Consultancy from Kerala University, Trivandrum. He has also obtained a Master of Journalism and Communication (MJC) degree from Mahatma Gandhi University, Kottayam. His opinion columns are published in leading Indian and foreign newspapers . His research papers include Family and Love in Indian Cinema, Agenda Setting in the Changing Global Media - A Middle East Perspective, Media Convergence and many topics related to Health and IT. Currently he works as a Creative Copy Editor and Media Researcher for a leading MNC in Dubai.

Her Majesty U.S.President Could Probably Feel the Pulse of Developing World

Sennie Varghese Chennai

"Only an American lady can understand the sorrow of a mom who lost her son or daughter in a bombing"

Mothers Day, International Women's Day, Nurses Day, Flowers Day, Pet Animals day. I think Americans are a society, who celebrates everything. Tomorrow they may celebrate a day for ants too. Their celebration is in words. In reality nothing they will show. I think as a society it still stands far behind from even the Asian and African societies.

Why didn't America select a woman as President or Vice President? To be frank many of the Americans hadn't any answer to this question. They have many women in their credit for the first position in various fields. But none came in the list of power politics. They have 'number first' woman who have gone to International Space Station and also to the Himalayas. One went deep in the sea.

Americans are very progressive in nature. They always help women to come up in various fields with the help of institutions and not that of support from society. You may criticise third world countries and Saudi Arabia for their attitudes to various issues, especially about women freedom. But compared to Americans these countries have a difference. They have elected at least once a women to head their countries. Whether it is in the Philippines, Sri Lanka, India, Israel or Brazil - they all have a tradition to consider and if possible say yes to their sisters to Govern the country. Their list includes Indira Gandhi in India, Benazir Bhutto in Pakistan, Chandrika Kumaratunga in Sri Lanka, Gloria Arroyo in Philippines and many more.

Why American's are hated all over the World? The question demands a serious study. I asked the same question to my friend Dan who, works with the Postal service office in California. I asked him what he thought about the abuse of prisoners in Iraq. I asked the same question to many other Americans. None of them showed a courtesy to discuss. But Dan has told me his views. He realised that Americans are the most hated people in the World especially in the Middle East. He was worried about the few US Army men who lost their lives in Iraq. He is also happy to say that his relatives are working in Iraq. But still he doesn't know why people hate them so much. I asked him after the election of the President of your Country did any of you tried to see what your leaders are doing. To be frank none of them have the time to look all these things.

Result of this attitude or this absent mindedness put Americans, as the most hated community in the world. Once they elect their leader people forget about their leadership for the next four years. The leaders tried their best to put the whole world under their boots. Many people thought that it was a good thing, because World will be governed by the Americans. Whether they kill thousands or they destroy a city, which has 2000 years old with Laser Bombs Americans never worried. Because Uncle Sam has told his people that they are trying hard to protect the people of America. During the war in Afghanistan and Iraq American leaders announced that they have destroyed the city's power stations and water pump houses with small bombs. They were happy in announcing that the city may be a hell for its people within hours. America needs a backlash from the city residents to the rulers of those poor countries. All American were happy to hear that the poor men in the third world country will fall soon. They don't understand till then the importance of water, electricity and hospitals.

One evening, fortunately or unfortunately, many of the American states lost power supply. First it was thought that the black out was due to a terrorist attack. President George Bush himself and various State Governors came online in various channels and said, "no it was not an act of terrorists." What happened?

Americans could not sleep in their homes. They don't have power to keep Air Conditioners and lights on. They don't have water to take bath and to use in toilets. What a hell this is? They themselves asked. No body knows whether any of them remembered the plight of lakhs of people who, lives in the cities in which laser bombs played their roles. No - none. Even the media did not say a word .It is the land of Christianity. Billi Graham, Joyce Meymer, number of missionaries goes up. But none of these God fearing men shown the courtesy to compare the city of New York with Karbala in Iraq or with Kabul in Afghanistan.

At this point every one will agree with Osama Bin Laden. He asked in a statement - Which religion considers your killed ones innocent and our killed ones worthless? And which principle considers your blood real blood and our blood water?

Any of the Americans have the answer?

Unless the American people realise the matter fully and involve in the decision making process I don't see any change of attitude to their people from Arabian Peninsula. Whether it is Father George Bush or Son George Bush none of them understand paining of people who lost every thing in an unwanted war. I think only a lady can understand this. Stop talking Americans. Select a lady as your President. A lady who knows the prices of precious lives - love of mom and son, love between Dad and daughter.

Only a lady can understand the sorrow of a mom who lost her son or daughter in a bombing. None of your politicians have this experience. We know. Even then ladies may identify it. They may astonish to see their former President's actions. Next time try for a woman President. Try for a change. (June 12, 2004)

By - SENNIE VARGHESE

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