I PIO CARD: -

The scheme was launched in March 1999 to give a sense of belonging to persons of Indian origin and to strengthen their ties with India. A PIO Card holder does not require visa to visit India and enjoys parity with NRIs in economic and educational facilities.

The fees for PIO Card have been reduced from $1000 for 20 years to Rs15000 to 15 years with half-rate for minors.

At present there are 86 lakhs of PIOS.

II Dividend Income: -

Dividend income which enjoyed exemption from income tax from 1-6-97 has been made taxable from @1-4-02 (AY 2003-04). Tax will be recovered @10% plus a surcharge of 5% on dividend exceeding Rs 1000 in a year. Whereas the limit for TDS is Rs 5000/- p.a. in the case of interest. The provision of TDS from dividend is applicable to even dividend earned by TRUSTS.

III Bulk Returns of employees to be filed by employee: -

Some practical difficulties may be encountered by employees in the implementation of above scheme.

The employees have to be persuaded to prepare all the necessary documents and submit signed and verified returns to the employer, before the due date so that the data could be transmitted in computer mode and separate bulk return can be generated by the employer and filed in the department. The employer will have to obtain individual acknowledgment receipts / information / demand notice from the department.

IV Film Financing: -

RBI has permitted banks to extend finance for film production without the old ceiling of Rs 10 crore. Subject to the limit of 50% of cost of project. A case on the point is IDBI who financed the film Aankhen and recovered their entire advance even before the film was released.