സ്ത്രീകള്‍ എങ്ങിനെ വസ്ത്രം ധരിക്കണം എന്ന് പുരുഷന്‍ നിഷ്ക്കര്‍ഷിക്കുന്നത് ശരിയോ? അല്ലെങ്കില്‍ തിരിച്ചും?

Showing posts with label Savings Schem. Show all posts
Showing posts with label Savings Schem. Show all posts

Tuesday, March 31, 2015

Should you buy Sukanya Samriddhi Yojana?





By Prashant Mahesh

The launch of Sukanya Samriddhi Yojana (SSY) by the government for the girl child has sparked considerable interest given its tax benefit and interest rate higher than Public Provident Fund. The SSY offers 75 basis points (bps) higher than the 10-year government bond as against 25 bps by the PPF. For 2014-15, the interest rate for PPF is 8.7% while the SSY offers 9.1%.
But, wealth planners believe subscribers should put money in this product along with an investment in equity products. This is because interest rates could fall in the future. Given that the investors are investing for a period of 10 years or more, a combination of equity mutual funds and SSY will generate better returns.
"Depending on their risk profile, investors could use SSY along with a combination of equity mutual funds/child funds to meet long-term asset allocation goals for their girl child," says Vishal Dhawan, chief financial planner at Plan Ahead Wealth Advisors.





Source : The Economic Times

Sunday, December 21, 2014

Government decides to pay 8.75% interest on PF for 2014-2015

Government decides to pay 8.75% interest on PF for 2014-2015




Over five crore provident fund subscribers governed by the EPFO will get 8.75 per cent interest on their deposits for the current fiscal. 
The Finance Ministry has ratified the rate for 2014-15, after a decision was taken to retain the interest payout at this level by the Central Board of Trustees of the Employees'Provident Fund Organisation, sources said. 
As per the practice, EPFO trustees' decision gets implemented after the concurrence of the Finance Ministry. 
Following the ratification by the Finance Ministry, the decision would now be notified by the Labour Ministry as also by the Income Tax Department.

Monday, February 17, 2014

Five things to know about National Savings Certificate


1) The National Savings Certificate (NSC) is eligible for tax deduction under Section 80C for an investment of up to Rs 1 lakh. One can invest in five- or 10-year NSCs.

2) The interest on the NSC is fixed in April every year. The current rate is 8.5% for five years, and 8.8% for 10 years.

3) The interest accumulated every year can be deducted from Rs 1 lakh investible in that year for saving tax, as it is considered to be invested for this purpose.

4) The interest is taxable, but since it can be reinvested as part of Section 80C investment, it makes NSC an attractive option.

5) Investors have to keep an account of the interest received each year and ensure that the overall investment, including the interest, is in the Rs 1 lakh limit.

(Content courtesy: Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre and Arti Bhargava.)

Source :The Economic Times

Saturday, December 01, 2012

Income Tax Section 80-CCG : New Tax Saving Scheme 'Rajiv Gandhi Equity Saving Scheme' (RGESS)


Finance Minister approves the Operational Features of the Rajiv Gandhi Equity Savings Scheme (RGESS)
The Union Finance Minister Shri P. Chidambaram approved a new tax saving scheme called “Rajiv Gandhi Equity Saving Scheme“(RGESS),exclusively for the first time retail investors in Securities Market. This Scheme would give tax benefits to new investors who invest up to Rs. 50,000 and whose annual income is below Rs. 10 lakh. 
The Scheme not only encourages the flow of savings and improves the depth of domestic capital markets, but also aims to promote an ‘equity culture’ in India. This is also expected to widen the retail investor base in the Indian securities markets. 
Salient features of the Scheme are as under: 

a. Scheme is open to new retail investors, identified on the basis of their PAN numbers. This includes those who have opened the Demat Account but have not made any transaction in equity and /or in derivatives till the date of notification of this Scheme and all those account holders other than the first account holder who wish to open a fresh account. 
b. Those investors whose annual taxable income is ≤ Rs. 10 lakhs are eligible under the Scheme. 
c. The maximum Investment permissible under the Scheme is Rs. 50,000 and the investor would get a 50% deduction of the amount invested from the taxable income for that year. 
d. Under the Scheme, those stocks listed under the BSE 100 or CNX 100, or those of public sector undertakings which are Navratnas, Maharatnas and Miniratnas would be eligible. Follow-on Public Offers (FPOs) of the above companies would also be eligible under the Scheme. IPOs of PSUs, which are getting listed in the relevant financial year and whose annual turnover is not less than Rs. 4000 Crore for each of the immediate past three years, would also be eligible. 
e. In addition, considering the requests from various stakeholders, Exchange Traded Funds (ETFs) and Mutual Funds (MFs) that have RGESS eligible securities as their underlying and are listed and traded in the stock exchanges and settled through a depository mechanism have also been brought under RGESS. 
f. To benefit the small investors, the investments are allowed to be made in instalments in the year in which tax claims are made. 
g. The total lock-in period for investments under the Scheme would be three years including an initial blanket lock-in period of one year, commencing from the date of last purchase of securities under RGESS. 
h. After the first year, investors would be allowed to trade in the securities in furtherance of the goal of promoting an equity culture and as a provision to protect them from adverse market movements or stock specific risks as well as to give them avenues to realize profits. 
i. Investors would, however, be required to maintain their level of investment during these two years at the amount for which they have claimed income tax benefit or at the value of the portfolio before initiating a sale transaction, whichever is less, for at least 270 days in a year. The calculation of 270 days includes those days pursuant to the day on which the market value of the residual shares /units has automatically touched the stipulated value after the date of debit. 
j. The general principle under which trading is allowed is that whatever is the value of stocks / units sold by the investor from the RGESS portfolio, RGESS compliant securities of at least the same value are credited back into the account subsequently. However, the investor is allowed to take benefits of the appreciation of his RGESS portfolio, provided its value, as on the previous day of trading, remains above the investment for which they have claimed income tax benefit. 
k. For the purpose of valuation of shares, the closing price as on the previous day of the date of trading will be considered so that new investors are certain about their debits and credits into the account. 
l. In case the investor fails to meet the conditions stipulated, the tax benefit will be withdrawn. 
Like all financial products which have reached out substantially to the retail investors (post office savings, life insurance policies etc) through tax benefits, this tax break for direct investment in equity is expected to substantially encourage the retail participation in securities market as well as to enhance their participation in the growth of Indian industry. Entry of more retail investors are expected to further deepen the securities markets as they bring in long-term stable funds, which can counteract the volatility created by the liquidity providers of the market. The Scheme, thus, also furthers the goal of financial stability and promotes financial inclusion. Since Exchange Traded Funds and Mutual Funds have also been brought under the Scheme, the Scheme should provide encouragement and re-assurance to the first time investors. 
The broad provisions of the Scheme and the income tax benefits under it have already been incorporated as a new Section - 80CCG - of the Income Tax Act, 1961, as amended by the Finance Act, 2012. 
Department of Revenue will notify the Scheme and SEBI will issue the relevant circulars to operationalize the Scheme in the next two weeks. 
PIB

Tuesday, September 25, 2012

Five tips to select a savings account


If you don't research before opening a savings account, you may end up earning a lower interest rate or paying more for certain services. To maximise your earning potential and minimise your losses, ET lists the things you should consider before choosing the account.
INTEREST RATES 
Though a savings account offers meager interest rates compared with other investing avenues, you do need to park some cash here for ready availability and it doesn't hurt to choose the one that offers the highest rate. After the RBI deregulated interest rates on savings accounts in October 2011, banks have started offering variable rates.
Currently, YES BankBSE 1.14 % is giving a return of 7% a year for a balance of more than 1 lakh and 6% a year for balance of up to 1 lakh. Kotak Mahindra BankBSE 0.63 %has on offer 6% a year for deposits of more than 1 lakh and 5.5% a year on balance of up to 1 lakh. Though 0.1% seems too minuscule a difference, it can add up to a reasonable sum for higher savings. However, keep in mind that higher promotional interest rates can fall later, so choose your account according to your savings plan. Opt for stable rates if you are in it for the long term.
MINIMUM BALANCE 
Go for a savings account that requires you to park a low or nil minimum monthly/quarterly average balance. This is because in case of non-compliance , you will have to pay a penalty, which can be as high as 350 a month. While ICICI BankBSE 0.00 % demands a minimum monthly average balance of 10,000, Standard Chartered's 'Breeze Banking' savings account is a zero-balance account for the first six months. After that, it demands a quarterly minimum balance of 25,000. Banks like the Oriental Bank of Commerce, Punjab National BankBSE 2.08 %, and now, the State Bank of IndiaBSE 1.54 % don't have the minimum balance criterion.
NET BANKING 
Opt for a savings account in a bank that offers you the Net and mobile banking facilities since you can conduct transactions from the comfort of your home and office. This is especially important since most banks now charge you for specified physical transactions at the bank branch, whereas these are free if you conduct them online or over the phone.
For instance, HDFC BankBSE 0.23 % will charge you 50 for stop payment of a particular cheque, but this service is free if you conduct it through Net or phone banking. Similarly, it will cost you 100 if you ask for the issuance of a duplicate statement by going to a branch, but only 50 if you do it through Net banking. So go for the bank that offers you these facilities to reduce your outgo.
TRANSACTION CHARGES 
Before choosing a savings account, make sure you read the fine print because most banks now charge extra for transactions or services that you were not paying for earlier and may not even avail of. For instance, did you know that the ICICI Bank charges 100 for the issuance of a duplicate passbook and 25 for the regeneration of your debit card PIN?
Source : The Economic Times

Saturday, September 22, 2012

FM APPROVES RAJIV GANDHI EQUITY SAVINGS SCHEME FOR RETAIL INVESTORS



FM APPROVES RAJIV GANDHI EQUITY SAVINGS SCHEME FOR RETAIL INVESTORS
The  Union  Finance Minister, Shri. P. Chidambaram approved a new tax saving scheme called “Rajiv Gandhi Equity Saving Scheme“(RGESS), exclusively for the first time retail investors in securities market. This Scheme would give tax benefits to new investors who invest up to Rs. 50,000 and whose annual income is below Rs. 10 lakh.
The Scheme not only encourages the flow of savings and improves the depth of domestic capital markets, but also aims to promote an ‘equity culture’ in India.  This is also expected to widen the retail investor base in the Indian securities markets. 

Salient features of the Scheme are as under: 
a. Scheme is open to new retail investors, identified on the basis of their PAN numbers. This includes those who have opened the Demat account but have not made any transaction in equity and /or in derivatives till the date of notification of this Scheme and all those account holders other than the first account holder who wish to open a fresh account.  
b. Those investors whose annual taxable income is ≤ Rs. 10 lakhs are eligible under the Scheme. 
c. The maximum Investment permissible under the  Scheme is Rs. 50,000  and the investor would get  a 50% deduction of the amount invested from the taxable income for that year. 
d. Under the Scheme, those stocks listed under the BSE 100 or CNX 100, or those of public sector undertakings which are Navratnas, Maharatnas and Miniratnas would be eligible. Follow-on Public Offers (FPOs) of the above companies would also be eligible under the  Scheme. IPOs of PSUs, which are getting listed in the relevant financial year and whose annual turnover is not less than Rs. 4000 cr for each of the immediate past three years, would also be eligible.
e. In addition, considering the requests from various stakeholders, Exchange Traded Funds (ETFs) and Mutual Funds (MFs) that have RGESS eligible securities as their underlying and are listed and traded in the stock exchanges and settled through a depository mechanism have also been brought under RGESS. 
f. To benefit the small investors, the investments are allowed to be made in instalments in the year in which tax claims are made.
g. The total lock-in period for investments under the Scheme would be three years including an initial blanket lock-in period of one year, commencing from the date of last purchase of securities under RGESS.
h. After the first year, investors would be allowed to  trade in the securities in furtherance of the goal of promoting an equity culture and as a provision to protect them from adverse market movements or stock specific risks as well as to give them avenues to realize profits. 
i. Investors would, however, be required to maintain their level of investment during these two years at the amount for which they have claimed income tax benefit or at the value of the portfolio before initiating a sale transaction, whichever is less, for at least 270 days in a year. The calculation of 270 days includes those days pursuant to the day on which the market value of the residual shares /units has automatically touched the stipulated value after the date of debit. 
j. The general principle under which trading is allowed is that whatever is the value of stocks / units sold by the investor from the RGESS portfolio, RGESS compliant  securities  of at least the same value  are credited back into the account subsequently. However, the investor is allowed to take benefits of the appreciation of his RGESS portfolio, provided its value, as on the previous day of trading, remains above the investment for which they have claimed income tax benefit.
k. For the purpose of valuation of shares, the closing price as on the previous day of the date of trading will be considered so that new investors are certain about their debits and credits into the account. 
l. In case the investor fails to meet the conditions stipulated, the tax benefit will be withdrawn.
Like all financial products which have reached out substantially to the retail investors (post office savings, life insurance policies  etc) through tax benefits, this tax break for direct investment in equity is expected to substantially encourage the retail participation in securities market as well as to enhance their participation in the growth of Indian industry. Entry of more retail investors are expected to further deepen the securities markets as they bring in long-term stable funds, which can counteract the volatility created by the liquidity providers of the market. The  Scheme, thus, also  furthers the goal of financial stability and promotes financial inclusion. Since Exchange Traded Funds and Mutual Funds have also been brought under the Scheme, the Scheme should provide encouragement and re-assurance to the first time investors. 
The broad provisions of the  Scheme and the income tax benefits under it have  already  been incorporated as a new Section -80CCG- of the Income Tax Act, 1961, as amended by the Finance Act, 2012. Department of Revenue  will  notify the Scheme  and SEBI will  issue the relevant circulars to operationalize the Scheme in the next two weeks.
Source : PIB

Monday, September 10, 2012

SAVING SCHEME IN POST OFFICES




The Minister of State for Communications & Information Technology ShSachin Pilot informed the Lok Sabha yesterday that the gross deposit of Small Savings Scheme in Post Offices  declined in the financial year 2011-12 as compared to the year 2010-11.                                                         
The decline of gross deposit in small savings schemes is, among other things, due to investor’s choice of alternative instruments for effecting savings. The Government has taken following measures to make the small saving schemes more attractive:-
 1.   The rate of interest on Post Office Savings Account (POSA) has been increased from 3.5% to 4%.  The ceiling of maximum balance in POSA 1lakh in single account and 2 lakh in joint account) has been removed.
 2.  The maturity period for Monthly Income Scheme (MIS) and National Savings Certificate (NSC) has been reduced from 6 years to 5 years.
 3.   A new NSC instrument, with maturity period of 10 years, has been introduced.
 4.  The annual ceiling on investment under Public Provident Fund (PPF) Scheme has been increased from ` 70,000 to ` 1 lakh.
 5.  Liquidity of Post Office Time Deposit (POTD) – 1, 2, 3 & 5 years – has been improved by allowing pre-mature withdrawal at a rate of interest 1% less than the time deposits of comparable maturity.  For pre-mature withdrawals between 6-12 months of investment,  Post Office Savings Account (POSA) rate of interest has been allowed.
 6.         Central and State Governments take various measures from time to time to promote and popularise small saving scheme through print and electronic media as well as by holding seminars, meetings and providing training to the various agencies involved in mobilising deposits under various small savings schemes. The rate of interest on Small Savings Schemes has been aligned with Government-Security rates of similar maturity with a spread of 25 basis points (bps) in all schemes except 10 Years National Savings Certificates (IX-Issue) and Sr. Citizens Savings Scheme where the spread of 50 bps and 100 bps has been given respectively (100 bps are equal to 1%).  Interest rate for every financial year will now be notified before 1st April of that year.
There were 26,01,69,920   number of operational small savings accounts in the Post Offices as on 31.03.2012  and the amount deposited therein uptothe end of March 2012  was  Rs. 190732.73 crore .
2,84,10,593 accounts were closed by customers during financial year 2011-12. 

Source : PIB, Sept 6, 2012

Saturday, August 18, 2012

Take care of money, as it will take care of you



Why do we lose money? Why are we generally not happy with our financial decisions? Why did it have to happen to me? Why did it happen when I invested my money? The answer is really simple but it is going to be very hard to digest.
Either we are complacent or just that we do not want to take the effort. This is a plain cold fact. If I had to put a number to this, reasonable estimate would be 10 per cent Vs 90 per cent, ie 10 per cent people are just complacent, while 90 per cent just do not want to take the effort. What makes things worse is that these 90 per cent people want short-cuts. Just quickly give me an investment tip, what's the best investment, what's new these days, where can I get the maximum returns, what is safe but can give very high returns,
I have got so and so investment, what are the prospects, what is the future? These are normally the questions most people want to ask. Everyone wants a quick fix and no one is really interested in spending time or effort. What makes matters worse is manufacturers exploiting this and launching new products regularly.
Ironical that the manufacture now says things like, this product is better than ever before which in other words means what they were selling till now was not so good.
Remember there are no short-cuts and nothing worthwhile in life is ever free. The next time you get something for free, just pause to think if there is really much value, commitment and credibility if you were to act upon that piece of information. Rarely this is true; remember free information in financial matters can be grave. In my view if you want something, you have to work hard for it. Then you have to spend time and money. There is no other way.
Life will continue to be more ever so busy and just like your children, your parents, your money also needs due attention. Irrespective of whether you are the do-it-yourself person or the lets-get-help person, the dire need of the hour is a serious investment of time.
So if you are the do-it-yourself person then is a lot to learn first. Educate yourself thoroughly. Spend money for educational books, courses, software, magazines, subscriptions etc. Learn the basics. Move over to advanced knowledge then. Whichever stream you choose, be it day trading, options, futures, currency, stocks, bullion, mutual funds, insurance, fixed income, there is an ocean of information to digest. This is a lot of hard work. On the other extreme you could simply bypass all this and invest in a bank fixed deposit.
But if you are keen to make wealth then get involved in the process and don't depend on friendly neighbourhood advice or the advice of your friend's friend who is a broker/ agent. Just think if you had to buy vegetables for 50 rupees you would check prices with three vendors. But you would not blink to invest Rs 50,000 on a hot tip.
So do you see why we lose money or are not happy with our financial decisions? For something that we want the most in our lives we spend the least amount of effort and time. We want to enjoy spending money but do not do enough to ensure that we have enough of it forever. We are not prepared to work hard; we are not prepared to seek the right advice. These days information is easily available and geography is irrelevant. All one needs to do is take the first small step, ie, to decide to invest time and effort for personal financial matters. If you don't take care of money, money will never take care of you. It's that simple.
On the other hand if you do not have the time and patience to do things yourself, the least you can do is invest time in searching and hiring a financial advisor.
Basically, if you can hire lawyers, chartered accountants, doctors etc for their service why do you want to risk your hard earned money? Invest time to talk to 3 or 4 or 5 experts if you want but finally choose the one you like and you feel most satisfied and
comfortable to work with.Don't waste your time with agents and brokers who are merely product distributors. But to do this is also a lot of hard work and it will be worth all the time spent. Is that too much to do for a lifetime of peace and financial control? Just invest this time once. Finding a good advisor is one short-cut you can afford to take. 

By Kartik Jhaveri, Director - Transcend Consulting 
Courtesy: The Financial Express, August 13, 2012

Friday, July 06, 2012

How to extend the Public Provident Fund account


The Public Provident Fund (PPF) account is a 15-year investment product in which the investor makes contributions each year according to the specified limits. The account matures after 15 years from the end of the year in which the initial subscription was made. 

On maturity, the investors have the option of extending the account for blocks of five years each. The extended account will continue to earn interest at the rate notified each year. The flexibility to withdraw funds from the account after it is extended is much more than in the initial subscription period. 
Extension rules: 
The investor can choose to extend the PPF with additional contributions or without fresh contributions. The rules for contribution to the extended account remain the same as during the 15-year period. Once the choice is made for a block of five years, it cannot be changed. 
Form: 
The investor has to submit Form H at the post office or bank where the account is held if he intends to continue with the subscription. The form is available athttp://www.indiapost.gov.in/pdfForms/PPFContinuation.pdf .
Extension times: 
The choice to extend the PPF account with subscription has to be made within one year from the maturity of the account. If this is not done, then by default the account is deemed to have been extended without further contribution for a period of five years. 
Points to note: 
The interest earned during the extended period of the PPF continues to be tax-free. There is no limit prescribed for the number of extensions of five years that are allowed for an account. The benefit of extension is not available to the NRIs who open the account before a change in their residency status. 
Source :The Economic Times

Sunday, June 10, 2012

LATEST INTEREST RATES CHART... ... (w.e.f. 01.04.2012)



Scheme
Term
Rate of
Interest
Monthly Deposit
Total Interest
Maturity
Amount

RD
5 Yr
8.4 % QCI
1000
14651
74651



Scheme
Term
Rate of
Interest
Deposit
Amount
Total Interest
Maturity
Amount

TD
1 Yr
8.2 % QCI
10000
846
10846
2 Yr
8.3 % QCI
10000
1712
11712
3 Yr
8.4 % QCI
10000
2601
12601
5 Yr
8.5 % QCI
10000
4385
14385
MIS
5 Yr
8.5 % SI
15000
6360
21360
SCS
5 Yr
9.3 % SI
10000
4660
14660
NSC
5 Yr
8.6 % HCI
10000
5235
15235
10 Yr
8.9 % HCI
10000
13887
23887

Courtesy : http://manooss.blogspot.in/ & http://rmssa.blogspot.com/