The Tribune, Chandigarh, India

	Bentley rolls out Mulsanne Tribune News Service New Delhi, March 13 British super luxury car brand Bentley has big plans for India and will be launching two of its high-end models over the year with an idea of capturing the high-end segment in the country. With the growing number of billionaires in the country, Bentley today unveiled its top-end model Mulsanne, which will be tagged at Rs 2.9 crore. The custom-built car, powered by a 6.7 litre V8 petrol engine, will be delivered to customers from October-November. The company also plans to launch another model priced above Rs 1 crore in the Indian market over the next six months. "We will start global production of the Mulsanne in the second half of the year from our plant at Crewe (the UK) and the first delivery in India will start in October-November. Besides, we will also launch our convertible GTC Supersport in India within 6-7 months," Bentley regional director (West Asia, Africa and India ) Chris Buxton said as the Mulsanne was unveiled.
	Aviation Notes Need for airport near New Delhi by KR Wadhwaney Worldwide, passengers’ inconveniences are addressed and facilities increased so that their travelling is comfortable. In this country, passengers are nobody's concern. Airport developers, for example, are minting money through various methods and means. Yet they are allowed to receive huge amount of users' fee from every passenger. Why are passengers being subjected to pay this fee when they are already paying huge amounts for tickets. Aviation analysts believe that the levy is totally uncalled for as the developers had indicated for this fee at the time they made their bids for constructing new terminal buildings and runways. In sharp contrast to this unreasonable levy, Minister of State for Civil Aviation Praful Patel is seeking the removal of air travel from the ambit of service tax. Dismissing the plea for “night curfew” on operation of flights from IGIA, the High Court has rightly thrown the ball into the lap of the airport authorities to determine operations. The airport authorities, according to the High Court, are the best judge to determine “how, when and why” flights should land and take off from the IGIA. Providing five months to Delhi International Airport Limited (DIAL) and the DGCA to complete repair work of the main runway, a High Court Bench opined: "Airport operation is highly technical and it should be left in the hands of technical people instead of through courts". Analysts are of the view that DGCA, should assume full control over operations instead of allowing non-technical individuals to interfere in the functioning of the airport... India is already facing “night curfew” flying at New York and Tokyo and any more restrictions will send the aviation sector in more turmoil. As Delhi has become more important than Mumbai, the movement of cargo and passengers has increased manifold. Many new foreign airlines are waiting in queue to fly ex-Delhi. Regardless of upgradation of terminal buildings, the airport is congested. There is a need for another international airport - be it Noida or Meerut or Agra. According to analysts, Agra (Taj city) will be the best centre for the international airport.
	Investor Guidance PPF a/c period can be extended by AN Shanbhag Q : My queries are regarding the PPF. The queries are because the bank concerned is unable to answer these to my satisfaction. 1. How is the initial period of 15 years of the PPF account counted? Say, if the account is opened on Dec 7, 1990, on what date and year the 15 year period would have been completed and when (with effect from which date) it should have to be renewed/extended if so desired? (There has been no break-in payment of contribution every year) 2. How many times the account can be extended after expiry of the initial period of 15 years? — Bipin Bhagwat A: 1. The language of the rules related with the dates of maturity, withdrawals and loans is quite complicated. Even bank officers, leave alone the lay investors, find great difficulty in interpreting these rules correctly. We shall simplify the rules for you. The various dates depend upon the financial year and not on the date of its opening. Your PPF account was opened in FY 1990-91. You may apply the following simple method: The account was opened in FY 90-91. Maturity: 1991 + 15 = 2006. Matures on April 1, 2006. The term of PPF is not 15 years, actually it is 16. The 16th contribution can be made in FY 05-06, even on March 31, 2006, the last date of the year. The entire amount can be withdrawn on April 1, 2006, or any time thereafter, unless you desire to opt for post-maturity continuation. The deduction can be claimed for a lock-in of only one day! Yours is an obviously post maturity extended account and the next maturity date is April 1, 2011. 2. One can extend the PPF account for 5 years as many times as you desire. For extending the PPF account with contribution one has to submit the ‘H’ form before contributing during the FY. Infrastructure bonds Q: In the recent Budget, an additional deduction was announced or Rs. 20,000 for investment in infrastructure bonds. Is this within the overall limit of Rs. 1 lakh of Sec. 80C? — Honnenahalli A: The Budget has proposed a new Sec. 80CCF that will offer a deduction of up to Rs. 20,000 next year onwards for investment made in infrastructure bonds. This Rs 20,000 is over and above the Rs. 1 lakh Sec. 80C limit. The details as to the term of these bonds, the lock-in period, the issuing institutions, etc are yet to come out. Budget and NPS Q: What are the changes brought about in the NPS (New Pension Scheme) in the Budget? — Nidhi A: The NPS has not taken off as expected. Now, the government proposes to contribute Rs 1,000 per year to each NPS account opened in 2010-11. This initiative, “Swavalamban” will be available for persons who join NPS, with a minimum contribution of Rs 1,000 and a maximum contribution of Rs 12,000 per annum during the financial year 2010-11. No change in TDS Q : Kindly guide on Budget 2010: 1) Whether TDS will be effected by banks for interest above Rs 10,000 and Form 15 G/H will be accepted by banks? (2) Whether Short-term and long-term gains on trading in shares has been clubbed with other incomes for 10 per cent tax up to Rs 5 lakh or 15 per cent on ST gain continues and LT gain exempted? (3) Whether 10 per cent surcharge has been removed for individuals for income above Rs 10 lakh? (4) Whether service tax 10 per cent is applicable on residential flat let out by a senior citizen for a living? (5) Whether TDS 10 per cent is to be deducted from brokerage to be paid to an estate agent, above Rs 5,000? — Rikhav A: 1. There is no change in TDS on bank deposits. TDS continues to be applicable for interest above Rs. 10,000. Those not liable to tax may furnish Form 15G or 15H to the bank as the case may be. 2. Again, there is no change in the capital gains tax system. Long term gains from equity continue to be tax-free whereas short-term gains will be taxed at 15 per cent. 3. The surcharge has been done away with during the last Budget. 4. Service tax of 10 per cent is applicable only for renting of commercial property and not for renting residential property. 5. The threshold for TDS on commission or brokerage has been increased to Rs 5,000 from the erstwhile Rs 2,500 by Budget. The authors may be contacted at wonderlandconsultants@yahoo.com
	SBI set to enter insurance business Ruchika M. Khanna Tribune News Service Chandigarh, March 13 The SBI is all set to enter the general insurance business through a newly created entity, SBI General Insurance Company. Beginning this month, the new company will launch some new products this month. This was stated by O P Bhat, chairman of the SBI, during a visit to the city here today. He said this company would be fully operational by next fiscal. “This business has been started in partnership with the Insurance Australia Group, with the SBI having a 74 per cent stake in the business. We will be spending anything between Rs 1000 crore and Rs 500 crore to set up new infrastructure for this subsidiary of the SBI,” he said. He said the life insurance business of the SBI was doing well, with over Rs 13,000 crore as assets under management. “The new and renewal premium income of the company is Rs 4000 crore this year,” he said. The SBI will now be promoting mobile banking in a big way. Though a soft launch of the service has already been done and the bank now boasts of over two lakh mobile banking customers, the service will now be promoted in a big way. “We had started rolling out this service by advertising only in our bank branches. But as we offer a whole array of services on mobile banking platform, we will now be promoting it in a big way. However, this does not mean that the branch expansion will be halted. We will continue to add more bank branches across the country,” he said. He said this year, they had witnessed a slow growth in deposits (12 per cent), though the growth in advances was around 40 per cent. The net interest margin has also come down.