The Tribune, Chandigarh, India

	Maruti cars costlier; Swift spared New Delhi, January 16 Maruti Suzuki India today hiked prices of most of its models by an estimated up to Rs 10,000 to offset the increase in input costs, including that of steel. While the average increase in the prices is of around 0.6 per cent, it varies from 0.12 per cent for Ritz VDi at the lower end to 1.9 per cent for the Dzire LXi models, Maruti Suzuki India said in a statement, but did not share the hike in rupee terms. However, the hike will range between a few hundred rupees and as high as Rs 10,000 per car, as per the current on-road prices of various models. However, the company's recently launched multi-purpose vehicle Eeco, and the petrol variant of the small car Swift and its Gypsy models will not be affected by the price hike. "The price increase is to partly recover the increase in the input costs arising out of raw material costs over the past one year. For some models, the increase in the costs is being absorbed by the company," the company said. It also said the introductory prices for its refreshed Estilo, which was introduced in August last year, has been withdrawn. Estilo will now be expensive by Rs 1,243-Rs 2,486 depending on the variants. Maruti's decision to hike prices comes after similar measures by other auto makers, including Honda Siel Cars India and BMW, in the past one month. Maruti also said the petrol variants of the Swift and the Swift Dzire would now be equipped with Bharat Stage (BS) IV norms compliant 1.2 litre K-series engines. The K 1.2 petrol engine on these variants delivered a fuel efficiency of 17.9 kilometre per litre, as against 15.9 kilometre per litre in the old engines. — PTI
	Production of Fortuner to go up Ruchika M. Khanna Tribune News Service Chandigarh, January 16 Toyota Kirloskar has re-opened the booking for its premium SUV-Toyota Fortuner, four months after the booking was closed when the vehicle got an overwhelming response from customers. Launched in August, 2009, the SUV had got over 3,100 bookings within a week of its launch - which was above the 2,500 deliveries targeted for the year. In all, the company has received orders for over 9,600 units. Unable to keep pace with the demand, the company closed booking for Fortuner in September. “Now, we have already delivered 3,154 units of Fortuner and have again opened the booking,” said Sandeep Singh, deputy managing director, marketing, Toyota Kirloskar. He said though the company had started with the production of 500 units of Fortuner, and no it had increased the production capacity to 950 units per month. “We will increase the capacity to 1,000 units per month by February. We have orders for 6,500 units of this SUV, which will be delivered by July this year,” he said. The director was in the city to launch the Toyota Q World, wherein all models from the Toyota Kirloskar stable were displayed. Talking to TNS, he said the company would also increase its total capacity from the present 80,000 units per annum. He said by March this year, they would launch two new vehicles- Prius and Prado Diesel. “The commercial production of our new offering, Etios (in a hatchback as well as sedan variant) will begin by December this year. The car will be launched either in December, or early 2011,” he said.
	Car of the year award for Nano Mumbai, January 16 Small car Nano, manufactured by the Tata group, has won Autocar India 2010’s “The Car of the year” award. "Recognition is for the full team that worked on the car and the challenge now is to exceed expectations," Tata Sons' chairman Ratan Tata said here. The awards were given across various categories to the best and the most deserving contributors to the auto industry, including Best Value for Money Car, Best Design and Styling, Best Variant of the Year, Car Ad of the Year, Manufacturer of the Year, among others. The other winners in different categories are Bajaj Pulsar 135 LS (Bike of the Year), New Mercedes E-class (Best Luxury Car), Toyota Fortuner (Luxury SUV of The Year), Fiat Grande Punto (Best Design & Styling), Tata Indigo Manza (Best Value For Money Car), Maruti Suzuki India (Manufacturer Of The Year).The jury for this year's Autocar Awards comprised Dilip Chhabria, Manwendra Singh, Hormazd Sorabjee, Shapur Kotwal, Renuka Kirpalani, Rajeev Khanna and Naren Kumar. — PTI
	Aviation Notes Bird-hit causing major losses to airlines by K.R. Wadhwaney Fog or no fog, failure of the radar screen or not, Indira Gandhi International Airport (IGIA) continues to function erratically because of lack of professionalism and man-made blunders like construction of runway 29 when a “Shiv Murti” is already installed on the flight path. The Delhi High Court has admitted a PIL which, among other reliefs, has asked for divertion of flights away from the spinal hospital in Vasant Kunj and structural changes in the Shiv Murti so that full runway could be used. In the petition, several other questions have been raised as to how and why the runway was constructed in a haste. The petition also raises the questions as to why category III. Instrumental Landing System (ILS) continues to buckle under pressure and reasons behind indifferent service to passengers when flights are bunched or delayed owing to fog. Fog and other technical snags are not the only causes affecting smooth flow of flights. The bird-hit menace continues unabated because Delhi International Airport Limited (DIAL), a private undertaking, has failed to take adequate measures to tackle problem, although it charges huge airport users fee from passengers on domestic and international flights. Passengers have started asking as to how long will it continue to be levied on them? The study reveals that there is no dearth of manpower. But what is lacking is systematic tackling of the problem by professional sharp shooters. Why there are more bird-hit incidents at the Delhi airport than several other international airports in other parts of the country. DIAL says that its measures are satisfactory but what is causing problem is that there is an inordinate increase in traffic and surroundings around the airport continue to be filthy. According to a study, reportage of bird-hit incidents has also been lax even though airlines continue to suffer heavy losses on delays and repair of aircraft. The birds get suck in and replacement of parts is also not as prompt as the situation warrants. The incidences of bad and rowdy behaviour on domestic and international flights have increased enormously. The problem has increased more because of airlines casual functioning than because of fault of any other agency at the airport. The ground staff of the airlines accept passengers, who are already high on alcohol and they, when on board the flights, cause problem. They misbehave with air hostesses who, already under pressure from influential passengers and commanders, have to encounter drunken passengers. According to the study, bosses of airlines, which were pleading for alcohol services on domestic flights, are the maximum sufferers. The ground staff of the airlines have to be more vigilant in dealing with passengers, who are “spirited” instead of throwing the ball in corridors of the police and the Directorate-General of Civil Aviation (DGCA). The DGCA can only formulate rules but implementation has to be made by the airlines. The International Civil Aviation Organisation (ICAO) has directed the Indian authorities to deal with rowdy and drunken passengers ruthlessly and levy stiff penalties. But, sadly, the Indian authorities continue to be lenient with the result the plight of air hostesses on flights becomes unbearable.
	Prez cautions RBI on credit growth New Delhi, January 16 President Pratibha Patil today exuded optimism that the Indian economy would record over 7 per cent growth the next fiscal, but cautioned the Reserve Bank against unbridled credit growth that could fuel inflation. Releasing a commemorative stamp on the occasion of the Platinum Jubilee of the RBI, the President also asked the apex bank to consider evolving a mechanism to give loans to women Self-Help Groups, particularly those comprising people below poverty line, at interest rates not exceeding 4 per cent per annum. Patil, however, cautioned the RBI to avoid indiscriminate grant of credit, while ensuring that credit to productive sectors was not denied. Excess money supply through cheap loans has the potential to drive inflation higher. Wholesale prices-based inflation is already over 7 per cent, according to the December data. "If there is one lesson that can be drawn from this crisis is that there cannot be unbridled extension of credit. The bank must continuously ensure that banks have proper guidelines for risk management," Patil said. — PTI
	Investor Guidance Growth option more beneficial in MF by A.N. Shanbhag Q: Which is the better option as far as investing in mutual funds is concerned - Dividend Reinvestment or Growth? — Madhur A: The dividend option gives the investor a chance to either invest the dividend received into the same scheme, thereby converting it into growth option or use the dividend for any other more useful purpose. There was a time when the growth option was more tax efficient than the regular dividend option, but after FA04 made dividends and also the long-term capital gains tax-free on equity-based MF schemes, the two options are equivalent from taxation point of view. Yes, if the investor does not want to be bothered with investing the dividend every time, he should go for growth. The dividend reinvestment option on the other hand suffers from a very innocuous shortcoming in as much as, if and when the entire investment is redeemed, the last dividend reinvested may attract tax on short-term gains. If there is a loss, provisions of dividend stripping may apply. In the case of debt-based schemes, there is the dividend distribution tax on dividends. Therefore, the growth option is more beneficial. Cash gift to kin Q: Kindly clarify doubts on 'cash gift’. 1) What is the maximum amount of gift (by way of cash) one can give to his/her close relatives (say father, mother, son, daughter) during the financial year? Is any gift tax is applicable? 2). How many times can one give the cash gift to close relatives during a life time? 3). Is it necessary to prepare a gift deed while giving the gift? — D.G. Athale. A: There is no limit on the amount of cash gift (through normal banking channels) that one can give one’s close relatives. Of course, the gifted amount must be legal and if required the donor has to prove the source of funds. In such cases of gifts to close relatives, the entire amount is tax-free both for the donor as well as for the recipient. Also, there is no limit as such on the number of times such gifts can be given. While preparing a gift deed is not necessary, having an affidavit that puts down the gift transaction in writing will be helpful. Property sale Q: I have just entered into a property sale transaction. I intend to buy another property to save the capital gain tax. I understand that one has two years to buy the property and in the meanwhile the money can be deposited in the capital gain account scheme (CGAS) deposit. My question is whether the entire sale proceeds should be deposited into the CGAS or only the capital gain (profit) portion? — Devji Shamji. A: In the case of the sale of a residential property, it is only the capital gains that is required to be reinvested in the new property - hence it is only the capital gains amount that needs to be deposited in the CGAS. Now, in the case of any other asset other than a residential property, to save long-term capital gains, it is the net sale proceeds that need to be reinvested in the new property, hence it is the net sale proceeds that have to be deposited in the CGAS. New tax code Q: I know you always recommend to get a term plan as far as insurance is concerned but the new tax code, it seems, will be a little problematic for those who think that the maturity amount for their policies will be tax free. Now as and when the new tax code comes into being that will no longer be the case and thus my question is that if you buy any policy before that new code comes into existence, will it be a good buy? Will the maturity amount be tax free simply because it was purchased before March 31, 2011? — Gandhi A: In a term plan, there is no maturity amount. So the question of it being tax-free or not does not arise. Any amount payable upon the death of the insured is tax-free. This position continues in the new tax code too. In fact, in the new tax code, subject to certain conditions, the maturity amount (if the policy is held till maturity) continues to remain tax-free. It is only premature withdrawals/ redemptions that are taxed. Taxation Avoidance Treaty Q: I am an NRI, currently in Saudi Arabia. I received an e-mail from my bank that Saudi Arabia and India are signatories of Double Taxation Avoidance Treaty. Hence tax deducted at source will be only 10 per cent and not 33 per cent as before. Kindly elaborate on this. As you know Gulf states are not imposing any tax on income. — Meghal A: The fact that Gulf states do not impose any tax on income is irrelevant to this matter. This issue is to do with the Indian rate of tax on your NRO interest. Under the Income Tax Act, TDS is at 31 per cent. However, the DTAA supersedes the ITA and what the bank is saying that they will offer the 10 per cent TDS rate for investors from Saudi Arabia. The authors may be contacted at wonderlandconsultants@yahoo.com