The Tribune, Chandigarh, India

	PM: Early stimulus exit may hit global recovery Toronto, June 26 Citing a risk of deflation, Indian Prime Minister Manmohan Singh said the Group of 20 major and emerging economies should not rein in budget deficits too fast but coordinate policy to ensure a sustained economic recovery. "My own feeling is that early fiscal retrenchment carries very considerable global risks," Singh told the Toronto Star in an interview published on Saturday, shortly before his arrival for the G20 summit in Toronto over the weekend. "But right now, the danger of deflation in the global economy is, in my view, much greater than the danger of inflation," he said. The G20 meeting takes place amid a debate over how to improve public finances without compromising the uneven recovery from the global financial crisis. The US has argued the recovery could be derailed by the accelerating austerity measures taken in much of Europe to cut debt and deficits. But G8 leaders appeared to have papered over their differences ahead of the summit. Singh said the manner of Europe's handling of its debt problems would be "a major determinant of which way the world economy evolves." India has begun its own process of rolling back stimulus measures announced in the wake of the financial crisis. It has outlined a roadmap to cut its deficit to 4.1 per cent of GDP by end-March 2013, from a budgeted 5.5 per cent in the current fiscal year to end-March 2011, helped by buoyant revenues from accelerating growth. Asia's third-largest economy is set to grow 8.5 per cent in the current year, following a 7.4 per cent expansion in the previous year. G20 on IMF, World Bank Huntsville (Canada): The leaders of the world's 20 top economies are set to end the 60-year domination by Europe and the US of the World Bank and International Monetary Fund (IMF) at a summit here this weekend, draft documents say. But they are not expected to approve European Union calls for a worldwide levy on bank risk-taking and a tax on financial transactions, German Chancellor Angela Merkel said. The leaders of the Group of 20 (G20) "agree that the heads and senior leadership of the international financial institutions should be appointed without regard to candidate nationality", read a draft summit statement seen by DPA. G20 leaders still have to approve the text. Since the two bodies were founded after World War II, the World Bank has traditionally been headed by an American while the head of the IMF has been a European. But the emergence of new powers such as Brazil, China and India has led for calls to overhaul that system. The G20 itself embodies that change. Since its first summit in November 2008, the club of the major developed and developing states has emerged as the world's most important economic body. The G20 is "the premier forum for our international economic cooperation", the draft says. — Agencies
	M&M to invest Rs 250 cr in aerospace business Bangalore, June 26 Keen on claiming a slice of India's growing aerospace business pie, Indian vehicle major Mahindra and Mahindra (M&M) today said it plans to pump Rs 250 crore into the aerospace business. "We are investing Rs 150 crore in the component business and Rs 100 crore in aircraft manufacturing," Anand Mahindra, Mahindra Group vice-chairman and managing director, told reporters on the sidelines of a function here. "There are huge opportunities in aerospace, and this is a growing area. The opportunities in this space are unlimited," he said, adding, "It is going to be the next front for Mahindra." Stating that the company would concentrate on building the business in the next two to three years, he said it was looking at offsetting opportunities in both the defence and civil sectors. "We want to build capabilities and a stable of products because, as the opportunities grow, we should not be found wanting," he said. — PTI
	Aviation Notes Unrest among NACIL staff over COO’s pay by KR Wadhwaney The appointment and emoluments of Rs 3.1 crore a year to the new Chief Operating Officer (COO), Gustav Baldauf, an Austrian, have not only ruffled many feathers but there is unrest and resentment in the staff of the amalgamated National Aviation Company of India Limited (NACIL). According to analysts, a foreigner’s induction, no matter how experienced, has been unwarranted. They believe that if it has been done to help improve the physical health of the NACIL, Baldauf’s wages and perks should have been conditional. He should have been engaged on the minimal salary, and, in the event of his failure to bring about turnaround within the stipulated period, he would forfeit the remaining emoluments and perks. The aviation experts are unanimous in saying that his efforts will bear no fruit and NACIL’s feeble financial health will become more critical. As of now, the company is saddled with an accumulated loss of Rs 7,200 crore and debt burden of Rs 15,000 crore. The NACIL’s deteriorating condition will further give boost to the private operators who have been dominating on the international and national routes. Recently, Kingfisher re-routed its flight from Srinagar to Delhi via Jaipur as there were 28 passengers, including VIPs, for Rajasthan. Its officials should have announced re-routing of the flight IT 353 before taking off from Srinagar. But as is airline’s won’t, its officials did not display any courtesy to Delhi-bound passengers and announced arbitrary routing only when the plane was around Delhi. When passengers protested, the commander announced that he was constrained to divert as there was heavy congestion at the IGIA. The airline’s spokesman hummed the commander’s tune adding that “there was VIP movement at the Delhi Airport.” The truth is that the Delhi-bound passengers were subjected to an avoidable inconvenience while VIPs were accommodated to arrive in Ajmer on the scheduled time. This is not the first time that Kingfisher officials have shown little regard for the rules. A month earlier, the airline had even violated the security rules at Delhi. The Directorate-General of Civil Aviation (DGCA) has been screaming that airlines are liable for compensating passengers for delayed flights and off-loading of passengers. This is a fit case for payment to passengers for needless and avoidable delay of the flight.
	Investor Guidance Female member can run HUF by AN Shanbhag Q: In your columns that appeared in The Tribune dated 11-4-2010 while replying to query of N. K. Munshi you have advised that HUF can run in the absence of a male member. As per my knowledge, there should be at least one male member to sustain an HUF. Hence your response needs revision. — Ashok Kumar Mittal A: The Hindu Succession (Amendment) Act, 2005, has amended Sec. 6 of Hindu Succession Act, 1956, mainly to give the same rights and privileges to daughters as was enjoyed by the sons of the family. Accordingly, w.e.f. 20.12.04 In a Joint Hindu Family governed by the Mitakshara law, the daughter of a coparcener shall, a) by birth become a coparcener in her own right in the same manner as the son; b) have the same rights in the coparcenary property as she would have had if she had been a son; c) be subject to the same liabilities in respect of the said coparcenary property as that of a son, and any reference to a coparcener shall be deemed to include a reference to a daughter of a coparcener. Even before this Succession Act came into force, an HUF could be constituted by only females in certain circumstances and moreover, even if the HUF had a male member, a female could become a Karta! The following are two citations that are relevant to the subject. CIT v RM AR AR Veerappa Chettiar(’70) 76ITR467 (SC) When an existing HUF is reduced to only female members, it can still continue as a HUF. This is in view of the existence of the potential coparcenary as any widow can induct a coparcener into the family by adoption. Champa Kumari Singhi v Revenue (1962) 46ITR81 (Cal) Where the senior most male coparcener is not capable of managing the affairs because he is invalid, or posted at a distant place or is an extremely busy person, the next senior male can take the reigns of karta. Again, if there is no other coparcener in the family, and even if there is one, and he is not in a position to manage the affairs being a lunatic or a minor or another busy person, a female member may manage the affairs in a representative capacity. It is necessary to apprise the facts to the concerned ITO and take his consent. Capital gains Q: I had applied for a flat from AWHO in September 2001 at Panchkula. The details are as under :- (a) Flat allotted on 01 October, 2001. (b) Date of completion November 2005. (c) Payment of instalments from 2001 to August 2008. (d) Flat possession taken on 22 January, 2009. (e) Possession offered from June 2008 onwards. Now I am selling the flat in June-end. My queries are as under :- i) Am I eligible for Long-Term Capital Gain (LTCG) OR Short-Term Capital Gain (STCG)? ii) Date is to be taken from date of allotment or from date of original date of completion (November 2005) as the AWHO delayed the project by more than two and a half years. iii) What are the various charges that can be included in the cost of flat i.e. registration charges, maintenance charges, society charges, alteration charges etc. — Col Onkar Singh A: You have taken the possession of the flat in January 2009. The clock for capital gains starts from the date of possession. The fact that the builder has delayed the construction is inconsequential. Maintenance charges and society charges are on current account and cannot be added to the cost of acquisition. Registration and alteration charges are on capital account and can be taken into consideration. Incidentally, had you sold the flat before taking possession, there was a possibility of you claiming long-term capital gains.