The Tribune, Chandigarh, India

New-look WagonR soon
Girja Shankar Kaura
Tribune News Service

Features

n K-series engine
n 18.9 km mileage
n Superior suspension
n Refreshing interiors
n More width & height
n Tilted steering

New Delhi, April 10
Having spent more than Rs 290 crore on re-designing its second largest selling model WagonR, Maruti Suzuki India Ltd (MSIL) is all set to dazzle the market with the new-look car.

Powered by the new generation K-series (K-10B) engine, the new WagonR, to be launched all over the country on April 23, will be an all new vehicle on a new platform with more space inside and a new design outside.

Giving a sneak preview to a select group of journalist, Mayank Pareekh, executive officer, Marketing and Sales, MSIL, said, “Everything is new in this model”. The MSIL claims that the new WagonR will give a mileage of 18.9 km per litre of petrol under test conditions.

Pareekh said normally MSIL spent about Rs 40-50 crore on refurbishing any existing model for it to be launched in a new avatar. But in the new WagonR, MSIL had spent more than Rs 290 crore besides the investment from vendors.

However, with the arrival of the new WagonR, the MSIL has temporarily suspended the manufacturing of the WagonR (Duo), which also gave the customer the option to the vehicle on LPG.

Pareekh said as of now MSIL would only be manufacturing the petrol version of the WagonR which would give more power and fuel efficiency.

Although the company officials were tightlipped about the costing of the new WagonR, but reports suggested that it was likely to cost a shade higher than the present model.

The new WagonR has a new cable-type transmission, a superior suspension technology and refreshing interiors. The overall length of the car is now increased to 3,595 mm with a wheelbase of 2,400 mm - the longest in its class.

The width and height of the new WagonR has also gone up 1,495 mm and 1,700 mm, respectively. The new WagonR is thus roomier with a larger cabin space and increased leg-room for all passengers.

The new WagonR comes equipped with a new L-shaped front suspension frame to improve ride comfort. This fine-tuned 3-point suspension is congruous to Indian roads and driving conditions, providing soft relaxed rides along with dynamic handling and NVH.

The steering wheel comes with a new design and can be tilted, while the ergonomically designed gear shift knob snugly fits into the palm to ensure driving comfort. Other features include electrical outside rear view mirror and superior colling due to the new HVAC design.

Su-Kam unveils car battery
Rs 1,000 inverter soon
Tribune News Service

Jammu, April 10
Su-Kam will launch the cheapest inverter this year. It will cost around Rs 1,000 as the company has targeted to make middle income families as their customers. Kunwer Sachdev, MD, Su-Kam Power Systems said the cheapest inverter would accommodate one fan and two CFLs at a time.

Sachdev also launched the latest innovation of Su-Kam, WIZ-a car battery- and entered in the car battery segment also. A senior company official said they had tied up with Maruti and Hyundai to use this battery in their cars, which will cost nearly Rs 2,800 in the market. The company officials also launched a new range of inverters - Blaze and Shark. “These new inverters are very light weight and can be used with any battery, which is an added benefit,” said Sachdev.

Apart from it, Su-Kam extended its range of solar products, with the launching of Solar Home Light System. “This product is equipped with a six-volt battery and can easily accommodate two CFLs and a cellphone for charging purposes,” said Sachdev, adding that it would last up to 19 hours.

Investor Guidance
House registration charges tax-exempt
by AN Shanbhag

Q: I was allotted a house by PUDA at Bathinda against the payment of Rs 8.5 lakh. This year I have got the conveyance deed (Registry) of this house executed. I have paid about Rs 80,000 as court fees and stamp duty i.e. registration charges. I want to know whether this amount is covered for tax exemption u/s 80C.

— S S Chilana

A: Yes, you can claim expenses on registration charges for tax deduction. Sec. 80C(xviiid) permits, “stamp duty, registration fee and other expenses for the purpose of transfer of the house property to the assessee”.

A/c after death

Q: My only son expired on March 23, 09, so the questions are about his assets. He has a PPF A/c which we had opened on November 14,1983. After 15 years, it was extended 5+5 more years. As per my calculations, his last extend period was over on March 31, 2009. In other words, he was entitled to withdraw whole money on April 1, 2009, or extend it. My wife i.e. his mother is nominee. For 3/6 months, we did not do anything as we could not get out of this sad incident. Now let me come to my queries.

Will bank pay interest on his PPF A/c if we continue it (I have not yet informed the bank about this incident) and how long more can we continue and get interest. Of course we cannot deposit any money in his A/c as he is no more.

He has an HUF A/c also. Very small money is there. His family consist of his wife and two small girls. Can his HUF A/c be continued? Will his wife become “karta” or manager or A/c has to be dissolved.

If the HUF A/c can be continued, can my wife withdraws money from PPF A/c and deposit it in his HUF A/c so that HUF can earn income by investing in FD and stocks.

— N.K. Munshi

A: 1. Yes, your calculation related to the maturity date of PPF is correct.

2. It is illegal to contribute any amount to the PPF account of a deceased person.

3. The account becomes discontinued if no contributions are made to the account during any FY. The balance amount continues to earn interest at the normal rates.

4. Partial withdrawals from this account is not possible.

5. Your daughter-in-law can rightfully become the “karta” of the HUF of your son.

6. Your wife is merely a nominee. She has the right to collect the money but she is only a trustee of the amount. She is required to hand over the amount to the legal heirs of your son who is his wife. There will be no objection from the department if your wife keeps the money with herself.

7. Your wife can give a gift up to Rs. 50,000 per annum to the HUF. Any higher amount of gift will be charged tax in the hands of the HUF. Since HUF has little income, your wife can give higher amount of gift. This amount of gift added to the income of HUF should not cross the threshold of Rs. 1,60,000.

Portfolio Managers

Q: Portfolio Managers undertake dealings in shares on behalf of their clients resulting in profits both short term as well as long term. Are these to be treated as capital gains or income from business? Moreover, portfolio management fees are charged on basis of increase in price of the shares which is only notional. Can this expense be treated as deduction from capital gains or income from business?

— Malpani

A: In a Portfolio Management Scheme (PMS), a person appoints a professional portfolio manager to carry out his securities transactions for which he pays the specified fees to such portfolio manager. Unlike a mutual fund, which has a specific exemption for its income under section 10(23D), the Act has not conferred any such tax benefit on a PMS. In such a situation, the PMS functions merely as a pass through vehicle and the actual liability of tax emanating from the security transactions carried out by the PMS is that of the individual owning the securities.

Normally, the gains from share transactions are treated as capital gains or business income depending upon the frequency and volume of transactions. In your case, since you have appointed a professional to handle these transactions, specifically to be free to attend to your main business, it is our considered opinion that the income from PMS would be treated as capital gains, irrespective of frequency or volume of transactions.

As regards the PMS fees paid by you, you have a right to deduct these from the PMS income. Unfortunately, it is a difficult exercise to allocate the fees to each transaction.

The authors may be contacted at wonderlandconsultants@yahoo.com

Aviation Notes
Overhead expenses hit NACIL
by KR Wadhwaney

The health of National Aviation Company of India Limited (NACIL) has shown marked deterioration. Its overhead expenses are increasing. The turnaround of the amalgamated entity, combination of Air-India and Indian Airlines, looks impossible under the circumstances.

Amidst this depressing scenario, the management has agreed to appoint a foreigner as COO. Regardless of Capt Gustav Baldauf's competence and experienced, his appointment has been baffling as NACIL cannot afford him. In addition, four more directors have been inducted.

The new team of directors along with CMD Arvind Jadhav submits a comprehensive turnaround plan to the board. The specific committees, audit, finance, strategy and human resources, have been formulated. Aviation analysts are of the firm view that NACIL's woes will reduce only when overhead expenses are cut to minimum.

All travel perks of politicians, bureaucrats and senior officials have been restored. This will lead to an increase in expenses. Why should NACIL provide this facility to ministers and bureaucrats other than connected with the Civil Aviation Ministry?

NACIL continues to be penny-wise and pound-foolish. It has rightly decided to shut down Pakistan offices. But several offbeat offices in the US and Europe continue to exit. The expenses on such offices in cities where NACIL flights do not operate, is around Rs 30 crore a year. Why were these offices initiated? Why are they continuing to exit when the company cannot afford them? According to officials, such offices will soon be phased out. But by the time they are closed, the NACIL's problems will increase further.

While NACIL's flights to the US and Europe are being curtailed under one pretext or other, Kingfisher is being allowed to launch operators. The airline has already started a daily flight to London from IGIA where main runway has been closed for repairs. According to airline officials, seven more flights on international routes will be added in a month. This is a great going for the airline, which is providing stiff competition to Jet Airways.

The trouble between airlines and travel agents has re-surfaced. The airlines, particularly foreign carriers flying through India, are categorically stating that they cannot afford to pay any commission to agents. In many foreign countries, the commission to agents has been done away with. In this country, some airlines are paying commission to some seasoned agents.