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Rift with sons a media creation, says Bajaj
Investor Guidance
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Aviation Notes
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Rift with sons a media creation, says Bajaj
"You media people created the so-called rift between me and my sons. My son Rajiv is a good businessman and is doing a good job at Bajaj Auto as the managing director. You people put those words into my mouth during an interview with a television channel," Bajaj retorted. "In fact, Rajiv was right in his decision to discontinue the scooters business by the end of next March... The market has changed and the demand is for gearless scooters today, but we are still stuck with the geared ones. So it was a good move," senior Bajaj said at the Indian Merchants Chamber here. He added, "I still agree to disagree with my sons on many matters. At the same time, I am happy that they are running the business in right direction." Early December last year, Rajiv had announced that the 50-year-old scooter brand Hamara Bajaj, which over the years has become a household name in the country, would become history from end-March 2011. He added the group would be concentrating on bikes from next April to accelerate growth in the bikes segment, as part of the company's aim to become the world's biggest bike maker. Rahul Bajaj had reacted to it, saying he was not only unconvinced, but was "hurt" by his son's decision. "I feel bad, I feel hurt," Rahul had said. — PTI
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Investor Guidance
Q: My query is regarding LIC’s Superannuation Scheme. I would like to seek your advice on the matter as stated below.
1) I have to exercise option for payment of Pension (Annuity) under pension plan “Jeevan Suraksha”. 2) The policy will vest on 24.12.2010. 3) I have decided to choose option (F) i.e. annuity for life with return of purchase price on death. 4) LIC has offered in its mandate that the annuity under option ‘F’ will be Rs. 21,771 yearly & Rs. 1,703 monthly without commutation option. 5) The annuity with commutation option is Rs. 16,328 yearly & Rs. 1,277 monthly. 6) My current health condition is excellent at the age of 60 years and expected longevity is about 10 to 12 years more at least. 7) I shall also be drawing a pension of Rs. 10,000 per month w.e.f. January - 2011 from the Central Government. Kindly suggest which option will be more beneficial for me. — B. L. Jaiswal A: It is preferable to opt for monthly annuity since this increases the opportunity of earning higher interest. The return is around 7.63% taxable. This is true for all options since all the options are actuarially equivalent. At present it is possible to earn 12% p.a., from mutual fund MIPs and even some FDs of a few listed companies where the risk is fairly low. The choice between ‘with’ and ‘without’ return of capital options may be made depending upon your current health, lifestyle and expected longevity. Also, without commutation would be more suitable under the circumstances. Rebate on HRA
Q: I am getting HRA as a component in salary. Also I had booked a flat the possession date of which is expected to be December 2010. However, I am already paying the housing loan for it (interest and principal). Now my question is can I claim HRA and housing loan payment for the tax deduction together? Or is it that I can claim HRA till December 2010 and the housing loan deductions then onwards only? — Vijay Patil A: There is no stipulation in the Income Tax Act that you are only eligible to claim HRA deduction and not housing loan interest or vice versa. In other words, you may claim both in the same financial year. The only condition is that you should be paying rent for the roof over your head. The fact that you own a property either in the same city where you work and live or anywhere else in the country is irrelevant. To reiterate, as long as you pay the rent, HRA deduction will be available. |
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Aviation Notes
Without any justifiable reason, the poor and gullible passengers are being subjected to further levies of fees for their flying on national and international routes. The revised levy multiplies woes of the passengers who are already paying heavy fares.
The greedy private builders are 'milking' passengers to maintain their own king-size lifestyle. The passengers, airlines and travel agents are of the firm view that the private builders like GM Rao outfit, are increasing fees thereby causing an enormous turbulence in the already chequered airline industry. The Airports Economics Regulatory Authority (AERA) was formed to address the grievances of the passengers and airlines, both Indian and foreign. Instead of catering to the needs of the passengers, the AERA has become a part of the private construction companies. The GMR's Hyderabad International Airport Limited (GHIAL) has been allowed to increase its User Development Fee (UDF) from Rs 350 to Rs 420 on domestic flights and from Rs 1,000 to Rs 1,656 on international sectors from November 1, 2010. Why has this raise been allowed at this juncture when the industry is passing through a rough period"? asked regular flyers and airline officials. Soon, the GMR outfit will increase fees ex-Delhi airport. The exact date for increased fee has not been finalised but it will be decided after domestic operations start from Terminal-3 from October 30. Then other builders at Mumbai, Bangalore and other airports will revise their fees. The outcry in the industry is that AERA is playing into the hands of the private functionaries, who are making hay while the sun shines. According to the AERA, the revision is purely on an ad hoc basis, based on traffic figures of the recent past. But the point is why have the private builders been allowed to increase fees? It is more than 20 years when skies were 'open'. But 'openness' of skies , according to civil aviation bigwigs, is only on paper. The International Air Transport Association (IATA) chief, Giovanni Bisignai, said: "In stark contrast to civil aviation ministry's pragmatic liberalisation is the old world approach to foreign direct investment in aviation by the Ministry of Commerce …., No foreign airline can invest in an Indian airport …Does this make sense that non-Indian airline can own 100 per cent of a green field airport project, but cannot invest a single rupee in an Indian airline?" The IATA chief was also critical of Indian government's recent move of imposing 10.3 per cent service tax on all domestic flights along with economy class travel on international sectors. |
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Amartex to foray into hospitality sector
Chandigarh, October 9 This was disclosed by Arun Grover, Chairman-cum-Managing Director, Amartex Industries, in an interview with The Tribune here today. From manufacturing, processing of textile fabrics, ready-to-wear garments, FMCG and retail outlets trading, Amartex is now opening a chain of restaurants in this part of the region. “Besides providing kebabs from Avadh and Kashmiri wazwan to South Indian dishes, our restaurants will provide food items from Kashmir to Kanyakumari at affordable prices. We have specially brought in chefs from Delhi, Amritsar, and Mumbai for bringing their specialities to the city. Initially, our first restaurant will come up at Panchkula soon. The work is going on a war footing and we are expecting to start it by the end of this year,” he said. Grover added that the company proposes to enter the national horizon and has envisaged an expansion plan to strengthen its manufacturing operations and retail network. Under the plan, the company proposes to enter the National Capital Region of Delhi in a big way, as the potential of the retail market is quite huge. He further said they are in talks with a leading international chain of hotels to set up a hotel in Mohali. He said:“We have a 1.5-acre plot at Mohali and 4-acre plot at Panchkula and talks are going on with the world’s leading chain of hotels for setting up hotels and Panchkula and Mohali.”
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Mumbai, October 9