I have explained in my earlier post that all the insurance companies will be moving towards Online channel for selling their insurance products. Also I have explained that Term plans which were earlier untouchable products will be selling like hot cakes due to increased awareness and demand of this class of product. Kotak life insurance has launched low cost term insurance plan which can be bought online only at much lower cost, inline with what is being offered by Aegon Religare ITerm plan, ICICI Prudential IProtect Plan, Metlife Met protect Plan.
Thursday, December 30, 2010
Wednesday, December 29, 2010
Lessons learnt from unearthing of Rs. 400 crore fraud in Citibank Gurgaon
If at all you are not aware about a Rs. 400 crore fraud happening in Citibank, Gurgaon Branch, which was unearthed on 28th December. Please find the story below
Shivraj Puri, a relationship manager at the Citibank Gurgaon branch, who allegedly sold investment products to high networth clients claiming that they would generate unusually high returns. He allegedly routed the fund garnered from HNI customers to stock market through brokerage firms like Religare Securities. complaint states that Puri had got a joint account opened in the names of Prem Nath, Sehna Prem Nath, and Deeksha Puri in September 2009. Earlier this month the bank checked the joint account and realised that there were large cash transactions from this account.
Tuesday, December 28, 2010
Details of IFCI Long Term Infrastructure Bond Series II
Tax Benefit:
Under Section 80CCF of the Income Tax Act 1961, Rs 20,000 per annum subscribed to long term infrastructure bonds shall be deducted in computing the taxable income. This is over and above Rs 1,00,000 tax benefit available under section 80C, 80CCC, & 80CCD.
Benefits as per Tax Slabs:
Slab 10.3% - Tax Benefit 2,060 Slab 20.6% - Tax Benefit 4,180 Slab 30.9% - Tax Benefit Rs 6,180
Wednesday, December 22, 2010
Tax savings season: ELSS and other Tax saving options
Year end is approaching and the time has come to get all our investments in place and submit requisite proofs to our employers so that appropriate tax deduction happens. Section 80 C provides us the option to invest upto 1 lac rupees which gets deducted from our taxable Income.
Deductions allowed over and above Section 80C
Under Section 80 CCF of the I.T. Act, an investor in such infrastructure bonds will be entitled to tax deduction of investments of up to Rs 20,000.
You could claim Rs. 15000 as deductible on health insurance under Section 80 (D), if you purchase health policy covering your Parents, you can claim additional Rs. 20000.
Wednesday, November 24, 2010
ICICI Prudential Child care Plan from ICICI Prudential Mutual Fund
Yes, its a Mutual Fund. Children Plans which has always been in the form of Life insurance, is what we all have heard, which had been working exactly like normal ULIP's or Mutual fund with slight twist and turns. Actually it never added any value except for the fact that it was sold with an emotional touch, but with very high Loading Charges.
Sunday, November 21, 2010
All you wanted to know about Aadhar, Unique identification project by UIDAI
What is Unique ID?Unique Identification is a string assigned to an entity that identifies the entity uniquely. Every person residing in India will soon have a UID. Biometric identification system and checks would be used to ensure that each individual is assigned one and only UID and the process of generating a new UID would ensure that duplicates are not issued as valid UID numbers.
Friday, November 5, 2010
Happy Deepawali : Buy Value stocks for long term on this auspicious day during Muhurat Trading
Lakshmi puja is organized on a grand scale in the stock exchange and a token "Muhurat trading" is done for a brief period in the evening hours only on Deepavali day. The stock traders consider it auspicious to start trading during the "Muhurat trading" session.
Saturday, October 30, 2010
Check your Tax deposit Credit online with Form 26AS
One can now view one's Form 26AS (Taxes paid) easily at ITR e-Filing website, without any additional login. To view the tax statement, Assessees can now login in to www.incometaxindiaefiling.gov.in with their login, and click on “My Accounts” -> “View Tax Credit Statement (Form 26AS)”. Next what you have to do is, select the “assessment year”, confirm your “date of birth” and proceed. It will open the same NSDL website page of PAN ledger account.What is Form 26ASForm 26AS is an Annual Tax Statement regularly updated by Income Tax Department. This allows the tax payer to verify proper credits of Taxes paid (mainly TDS and also Advance Tax / Self Assessment Tax).
Why we should verify
After depositing some amount into our Bank Account, we verify whether it has reflected properly in our account, or not. Likewise, it is impotant and also a right of every Tax Payer to verify the Taxes paid under his account (PAN) to the Department.
With the process of Form 26AS, department recommends each and every tax payer to verify their Tax credits. Missing this information, they should contact their deductor to get proper credit, as specified in their TDS certificate. In case of Advance Tax / Self Assessment Tax issues, it can be either intimated to remitted bank or NSDL.
Scope of Form 26ASLast year, department had processed such tax statements over email, wherever email ID is available. This played a prominent role for assessees in determining their proper tax paid details. Providing accurate tax paid (including TDS) details in income tax return, ensures faster processing of returns. This in turn results in faster closure of assessment and also settling refunds wherever applicable.
The scope of Form 26AS is widening to a greater extent now. Tax payer can now access this facility either with his Registered Login at NSDL website, or at Online Banking Accounts (few of the banks) or at www.incometaxindiaefiling.gov.in .
Why we should verify
After depositing some amount into our Bank Account, we verify whether it has reflected properly in our account, or not. Likewise, it is impotant and also a right of every Tax Payer to verify the Taxes paid under his account (PAN) to the Department.
With the process of Form 26AS, department recommends each and every tax payer to verify their Tax credits. Missing this information, they should contact their deductor to get proper credit, as specified in their TDS certificate. In case of Advance Tax / Self Assessment Tax issues, it can be either intimated to remitted bank or NSDL.
Scope of Form 26ASLast year, department had processed such tax statements over email, wherever email ID is available. This played a prominent role for assessees in determining their proper tax paid details. Providing accurate tax paid (including TDS) details in income tax return, ensures faster processing of returns. This in turn results in faster closure of assessment and also settling refunds wherever applicable.
The scope of Form 26AS is widening to a greater extent now. Tax payer can now access this facility either with his Registered Login at NSDL website, or at Online Banking Accounts (few of the banks) or at www.incometaxindiaefiling.gov.in .
Thursday, October 28, 2010
Review LIC Endowment plus plan (Table no. 802)
Tuesday, October 26, 2010
Review of LIC Pension Plus (Table No. 803): A Unit Linked Deffered Pension Plan from LIC(Life Insurance Corporation)
On its 54th anniversary, Life Insurance Corporation of India has gifted a new scheme namely LIC pension plus to its people. It is a unit linked deferred pension plan as it provides the insurer the minimum guarantee on the entire premium paid. The interesting aspect of this plan is that there is no life cover during the entire term of the policy. This is first of its kind policy from LIC, India’s leading personal life insurance company to come up with a plan without insurance in its plan.The salient features of this plan are:The policy uses the fund value to offer a pension based on the current annuity rates under the chosen annuity option. The policy has a guaranteed return with minimum rate
Sunday, October 24, 2010
ICICI Pru Life Link Wealth SP (Single Premium) Review
This, ICICI Pru LifeLink Wealth SP, is a ULIP plan but the only difference being it is a single premium plan from ICICI Prudential Life Insurance. This is a plan which will give you the opportunity to gain from more returns via the markets by making just a single premium. This plan from ICICI Pru also helps you protect your gains but still stay invested by protecting your investments from any future market volatility.
Thursday, October 21, 2010
Where has the ULIP policies Gone? Why agents are not talking about ULIP anymore
ULIP was the biggest buzz in the market till september this year. Your polite agent would have been talking about it more recently. We all have been getting calls from various Corprate agents of different Life Insurance Companies till recent days. However, I guarantee, if at all you call the same people to provide you the ULIP policies now, they will be least interested and pitch in for Traditional Plans. They had several USP's (Unique Sales Proposition) and advantages as well as all good reasons they have been telling us to go for a ULIP policies till now, but today in the market, the same people are saying that ULIP policies are not worth it.
Wednesday, October 20, 2010
Start getting pension from tomorrow with LIC Jeevan Akshay VI Immediate Annuity Plan (Table No. 189)
It is an Immediate Annuity plan from LIC's , which can be purchased by paying a lump sum amount. The plan provides for annuity (pension) payments of a declared amount throughout the life time of the annuitant. The type and mode of payment of annuities comes in various options. LIC will pay the annuitant a uniform payment at regular intervals starting immediately after the annuitant pays a lumpsum premium towards the price of the policy. One can choose to receive the payments monthly, quarterly, half-yearly or yearly.
Monday, October 18, 2010
Various Payment Options for Paying Premium of LIC (Life Insurance Corporation of India)
Payment channels, where policy is required to be registered in the data base at LIC, receipt sent by post:
- Electronics Clearance System (ECS): This facility is presently available at more than 53 centers. Total places where ECS can be offered as per RBI is 64. Through ECS premium can be collected for ULIP and Health Insurance policies also.
- Portal Payment Gateway: Online premium payment on LIC website, www.licindia.in with the help of NET Banking facility of 33 major Banks. Premium can be paid for ULIP policies also.Reciept Issued Instantly.
Saturday, October 16, 2010
Review Met-Protect- The Online Term Plan from Metlife Insurance Conpany
Now, this is the New Kid on the Block, Online Term Insurance from Metlife "Met-Protect" product in the same line with Aegon Religare I-Term and ICICI Prudential I-Protect is offering, where premium rates are much lesser than other products available in the market. Although I have explained about Term Insurance plan in my Earlier post we will be going through it once again.
Friday, October 15, 2010
Reasons why Online Term Insurance Aegon Religare I- Term and ICICI Prudential I- Protect is coming so cheap
I have posted earlier about the 2 Cheapest Online Term Insurance Products, I-Term from Aegon Religare Life Insurance and I-Protect from ICICI Prudential Life Insurance. I have received many mails from Readers asking why these products are being offered so cheap, Premium being lesser than 50% of what is being Charged by LIC and other Insurance companies? What's the catch? How will we be assured that we are purchasing right product?
Me and my brother have personally opted for this policy after undergoing very stringent medical tests.After giving a deep thought, have come out with possible reasons.
Thursday, October 14, 2010
Details of L&T Infrastructure bonds opening on 15th October 2010
L&T Infrastructure Finance Company Limited, a 100% subsidiary of Larsen & Toubro Limited, was incorporated in 2006, and is registered with the RBI as a systemically important non deposit taking NBFC and classified as an IFC. The company’s business comprises the provision of financial products and services for customers engaged in infrastructure development, construction and operations & maintenance with a focus on the power, roads, telecommunications, oil and gas and ports sectors in India. The company is registered with the RBI as an Infrastructure Finance Company, or "IFC", which allows it to optimize its capital structure by diversifying its borrowings and accessing long-term funding resources, thereby expanding its financing operations while maintaining its competitive cost of funds. The total income of the company for Fiscal Year 2010 was Rs. 4,504.23 million. The total loans and advances outstanding of the Company as at March 31, 2010 were Rs. 42,884.99 million and total disbursements for Fiscal Year 2010 were Rs. 37,955.14 million.
Wednesday, October 13, 2010
Know all about Personal Accident Insurance Cover from National Insurance Company
Abhishek Sharma is a healthy man with a loving wife and two sweet children. By the age of 34, he has charted his financial path with meticulous forethought and planning. He has planned his finances well, from investing systematically in equitiy fund, to buying life insurance. He has Invested in all right products. One day he met with an accident and lost his legs. Tuesday, October 12, 2010
LIC Health Protection Plus Review- Table No 902
LIC’s Health Protection plus is a unique long term health insurance plan that can combine health insurance covers for the entire family (husband, wife and the children) Hospital Cash Benefit (HCB) and Major Surgical Benefit (MSB) along with a ULIP component (investment in the form of Units) that is specifically designed to meet Domiciliary Treatment Benefit (DTB) / Out Patient Department (OPD) expenses for the insured members.This appears to be a very tricky product and when I contacted the agent for details, he was also not clear on many things.
Trade in Silver through E-Silver by National Spot Exchange Ltd
E-Silver is a new incarnation of silver, innovated by National Spot Exchange (NSEL), which enables investors to invest their funds into silver in smaller denomination and hold it in demat form. It is available on the pan India electronic trading platform set-up by National Spot Exchange, which can be accessed through members of NSEL or their franchises. It provided an unique opportunity to buy, accumulate, hold and liquidate "Electronic Silver (E-Silver)" as well as to convert the same into physical silver coin/ bar in a seamless manner.
Sunday, October 10, 2010
E- Gold- The Safe, Secure, Economical and new way to Invest in gold
National Spot Exchange has launched a unique investment product in gold on its platform which is among first in India. It will facilitate small investors to invest in gold in denominations as less as 1 gram, and multiple thereof in demat form.
The would work exactly the cash segment in equities functions, offering Gold in the demat form in smaller denominations (e.g. 1, 2 3…… gms). E- Gold is set to attract the millions of small Investors, who would be required to open a demat account to participate in this.
Considering the wide reach of Brokers/Distributors, and the avalibility of E-Channels to trade in this product, it would be just a phone call away or at the click of a mouse across geography. Investors can now trade and invest in gold just like shares. This product is equally suitable for retail investors of equity market and house hold. The clearing and settlement pay-in and pay-out are based on T+2 cycles.
Friday, October 8, 2010
Want to save more tax? Invest in IDFC Infrastructure Bonds
In the current financial year a new kind of relief has been announced which has never appealed to equity savvy investor which is Investment in Infrastructure bond under Section 80CCF. According to the proposal, individuals can invest up to Rs 20,000 in these bonds in addition to the Rs 1-lakh limit available under Sections 80C, 80CCC and 80CCD.
Entities like LIC , IDFC, IFCI can also issue these bonds or any other NBFC as classified by the RBI can even do this. Lately in September, IFCI issued these bonds on a private placement basis, and now, IDFC has decided to offer the first tranche of these bonds to the public. It plans to raise Rs 3,400 crore through such infrastructure bonds in one or more tranches during FY11. The government of India is IDFC’s single largest shareholder and it provides a range of financing solutions to the infrastructure segment in India.
Tuesday, October 5, 2010
Tax treatment of Investments done before April1, 2012 New Direct tax code into effect
the day I have written about implications of New Direct tax code on Personal Finance, I have recieved numerous mails from readers regarding the maturity proceeds of investments they have already done. Also many of them want to know about benefits on yearly commitment in long term investments for many years to come, eg, Life insurance policies Premium etc. Most of us are really nervous and worried about how New DTC will effect their investments
Tuesday, September 28, 2010
NPS Lite(New Pension System Lite) for economically disadvantaged sections
National Pension System (NPS) is an initiative of Pension Fund Regulatory and Development Authority (PFRDA), the apex body established by Government of India to regulate and develop the pension sector. NPS has been extended to all citizens of India with effect from 1st May 2009. To extend the coverage of NPS to the weaker and economically disadvantaged sections of the society with their limited investment potential, PFRDA has introduced NPS-Lite which specifically targets the economically disadvantaged sections of society and promotes small savings during their productive life. It aims at building up a corpus sufficient enough to buy an annuity for their old age.
Monday, September 27, 2010
NPS Swavalamban Scheme: Operational Guidelines The Scheme and its applicability
The Government of India has approved the Operational Guidelines for the Swavalamban Scheme which was announced in the Finance Minister’s Budget speech of 2010-11. The Scheme is applicable to all citizens in the unorganised sector who join the New Pension Scheme (NPS) subject to their meeting the eligibility criteria. Under this Scheme, Central Government will contribute Rs.1000 per year to each NPS account opened in the year 2010-11 and for the next 3 years, i.e., 2011-12, 2012-13 and 2013-14. To be eligible, a person will have to make a minimum contribution of Rs. 1000 and maximum contribution of Rs.12000 per annum, for both Tier-I and Tier-II accounts taken together.
Saturday, September 25, 2010
Revised Standard Know-Your-Client (KYC) norms and non-acceptance of Third Party payments for mutual fund subscriptions
We would like to bring to your attention the following two important changes being implemented in the mutual fund industry.
1. Revised Standard KYC norms effective October 1, 2010 for certain category of investors
As you would be aware, mutual funds are required to formulate and implement a client identification program as well as verify and maintain records of the identity and address(es) of investors in accordance with the Prevention of Money laundering Act, 2002 („PMLA‟) and SEBI guidelines. Association of Mutual Funds in India (AMFI), along with all mutual funds, has made arrangements with CDSL Ventures Ltd (CVL) to undertake the centralized record keeping of KYC documents. On completing a one-time process of common standard KYC with CVL, investors can transact across multiple mutual funds without having to repeatedly submit documents with each mutual fund.
Friday, September 24, 2010
New Direct tax Code effect on Non Resident Indians (NRI's): Do they need to fear?
I have already covered effects of New Direct Tax Code on Individuals in my earlier post. However, I received numerous mails from all over the world seeking clarifications regarding the NRI definition as per New Direct Tax code and its Tax implication on their overseas income.
In the last month I have seen various headlines in Every news website as well as News Channels that new Direct tax Code may hit NRI’s badly as “More NRIs may fall under the tax net if the Direct Taxes Code (DTC) Bill proposal to impose a levy on their global income if they stay in India for more than 60 days in a year is approved by Parliament.” This has been highly misinterpreted as it doesn’t not says exactly what has been mentioned above. You will be surprised to know that even in Income tax act 1961 under Section 6 it said the same thing. Its really surprising that this has been published incorrectly by even most reputed media houses in India, and till date no one has pointed it out.
In the last month I have seen various headlines in Every news website as well as News Channels that new Direct tax Code may hit NRI’s badly as “More NRIs may fall under the tax net if the Direct Taxes Code (DTC) Bill proposal to impose a levy on their global income if they stay in India for more than 60 days in a year is approved by Parliament.” This has been highly misinterpreted as it doesn’t not says exactly what has been mentioned above. You will be surprised to know that even in Income tax act 1961 under Section 6 it said the same thing. Its really surprising that this has been published incorrectly by even most reputed media houses in India, and till date no one has pointed it out.
Monday, September 20, 2010
New Direct Tax Code effective 2012: How it effects Personal Finance: completely explained
In the year 2009, Government had announced the New Direct Tax Code (DTC) from 01/04/2011. This announcement had created a big hype and also talked about simplifying our Tax structures. Initially it talked about replacing EEE(Exempt Exempt Exempt) regime i.e. Exempt at Contribution, Exempt at accumulation and Exempt at withdrawal with EET (Exempt Exempt Taxed) regime i.e. all savings and investments would be taxed at the time of withdrawal. Income tax Slabs were proposed to be significantly higher from present which would have resulted in much lesser tax outflow.
Saturday, September 18, 2010
Value-averaging Investment plan: A revolutionary way of Investing ( Part2 )
How do I implement VIP?
In today’s time, I have not seen any product in the market which gives us VIP product. Hence we will have to implement it ourselves only. You can take the help of the VIP calculator and manually invest the desired amount according to the Risk variable (Coefficient) chosen by you.
Wednesday, September 15, 2010
Provident Fund Interest raised 1%(100 basis points)
Its great news for all Public and Private sector employees in India. The Provident Fund Trustees today decided to give a higher interest rate of 9.5 per cent for 2010-11 on their retirement savings.
This hike 100 basis points (1%) has taken the interest on PF deposits of 4.71 crore (47 million) people working in organised sector from the current level of 8.5 per cent. The decision to raise the interest rate was taken by the Central Board of Trustees in favour of the employees, due to rise in Interest rates in recent times.
This hike 100 basis points (1%) has taken the interest on PF deposits of 4.71 crore (47 million) people working in organised sector from the current level of 8.5 per cent. The decision to raise the interest rate was taken by the Central Board of Trustees in favour of the employees, due to rise in Interest rates in recent times.
Wednesday, September 8, 2010
Value-averaging Investment plan: A revolutionary way of Investing ( Part1)
Value-averaging investment plan (VIP) is a new method of systematic monthly investment which is slightly different from Systematic Investment Plan (SIP). In VIP the monthly contribution amount varies from month to month unlike SIP depending on the market performance. The concept is very simple, Increase your contribution when last month return is less than expected and decrease your contribution when last month return is more than expected.
Thursday, September 2, 2010
Do safe Online shopping with the Virtual Credit Card
Do you prefer not to do online shopping due to online security concerns that your Credit Card details might be exposed and misused? Next time you dont have to bother about this with the presence of The Virtual card offering involves generation of a virtual card number that you set up using your existing physical credit card or debit card. You can then use this virtual card number to shop online at any merchant website.
What are the unique features of Virtual Cards?
- The actual credit/debit card number is never used in the online transactions. Therefore, there is no risk of the actual card number getting exposed during the online transaction or on the merchant website.
Tuesday, August 31, 2010
New Direct Tax Code Presented in Parliament on 30th August 2010 disappoints
The New Direct Taxes Code Bill introduced in Parliament on 30th August, 2010 is very different then what it was proposed in its initial as well as revised draft. It has many surprises and would disappoint Individual taxpayers who were expecting a lot from the Finmin. Although it is not a complete disappointment as we will be getting more than what we have at present. Please find the summary of Draft presented in the parliament
- It will become effective from April 1, 2012 instead of April 1 2011. The DTC operationalization has been put on hold for a year to give tax practitioners, taxpayers and tax administrators time to become familiar with the new provisions.
Saturday, August 21, 2010
Purchasing or renting a house- The debate continues
In my earlier post (The magic of compounding), there was a very heated as well as healthy discussion with one of my reader regarding "Is it better to buy a house or simply rent it " and invest the entire capital on which power of compounding would would work which might give higher returns with no strings attached. Although every individual might have different view in this regard, I found 1 very useful calculator at http://www.itrust.in/tools-and-calculators/Buy-vs-Rent/Calculator.jsp which gives a rough estimate based on some inputs. Although there are many assumptions, as well as there might be regulatory changes in future which might change the dynamics.
Friday, August 20, 2010
True story - How Mis selling happens in ULIP
I am sure that we all get calls from Corporate agency of various insurance companies. Although earlier I always use to disconnect the call without listening but today I thought why not listen to the person. This was the call from one particular policy of a renowned Private life Insurance company. Please read the interesting conversation I had with that particular caller. Why I am not highlighting the Insurance company is that Corporate agents of other companies would not be any different.
Caller: Very good afternoon sir, I am
Tuesday, August 17, 2010
Review - ICICI Pru iProtect Online Term Insurance
I have always emphasized about having a term Insurance in your portfolio in my earlier post as it offers High Coverage at much lower cost as compared to any other Insurance products like ULIP and Endowment plans.
In the term insurance segment, you all must have heard about Aegon Religare I-Term Plan, a revolutionary product which was launched last year offering Online term insurance at really lower cost as compared to other products available in the market. Those who have not heard please refer to my Post Lowest Premium Term Insurance Policy in India
Wednesday, August 11, 2010
LIC Jeevan Saathi Plus: Table No. 197
LIC’s Jeevan Saathi Plus is a unit linked plan wherein a couple can take the insurance cover on their lives under a single policy. The proposer under the plan shall be called Principal Life Assured (P.L.A.) and the other life (wife/husband) shall be called Spouse Life Assured (S.L.A.). The premiums can be paid either in lump sum (single premium) or regularly throughout policy term. The P.L.A. can choose the level of cover (Sum Assured) for both lives within the limits, which will depend on whether the policy is a Single premium or Regular premium contract, age and the amount of premium agreed to pay. For regular premium policies, in case of death of the P.L.A. during the term of the policy, the plan also provides for waiver of all future premiums including outstanding premiums, if any, provided life cover is in force.
Monday, August 9, 2010
LIC Jeevan Bharathi - I Table No. 192
LIC’s Jeevan Bharati-I – is a plan exclusively for women. It is a with profit plan having special features considering the needs of women. The plan also provides for Accident Benefit, Critical Illness Benefit and Congenital Disability Benefit as optional Riders
1. SPECIAL FEATURES
1. Encashment of Survival Benefit as and when needed:
The policyholder at her option may avail the survival benefit any time on or after its due date. If opted to avail later, increased survival benefit at the rate decided by the corporation from time to time will be payable.
Sunday, August 8, 2010
IRDA starts Nation-wide Grievance Call Center for Complaints against Insurance Companies
Are you having a problem with Claims or other issues with an insurance company and your insurer is not paying any attention to your complaint?For those facing problems with life insurance claim settlements, better times are here as IRDA (Insurance Regulatory and Development Authority) has started a new service where you can approach by phone or E-mail. You can now approach the IRDA on its toll-free number or on the contact numbers of special Designated Officers which is available on a click.
Saturday, August 7, 2010
Twelve steps before buying an Insurance policy
Insurance is one of the most important aspect of financial planning, which takes care of the Risk part. However it is really difficult to understand which Insurance product is most suitable according to our needs as well as stages in our life. Most of us rely on the expertise of their Insurance advisor, broker, or sales representative to help us make the right decision. It would not be advisable to rely totally on the advise of Insurance agents/Representative as Insurance is a push based product and the product in which agents/representatives get is generally advised by them.
Here are some steps you can take to ensure you get the right product for the right price:
Sunday, August 1, 2010
Looking for Higher Health Insurance Cover: Here comes Top-up Insurance cover.
In the times of rising medical costs the perfect health protection for you and your family it is important that you have adequate health insurance cover for your family. Although most of us already have cover upto 5 lacs by paying hefty premiums we have never thought of opting for health insurance cover of 10 lacs, 15 lacs 20 lacs and so on.
Since most of the insurance companies offer health cover only upto 5 lacs, buying 4 insurance cover of Rs 5 lacs each will turn out to be a very costly proposition. Here come new type of Health insurance cover " Topup insurance cover" In which you can take topup insurannce cover upto 15-20 lacs by paying fraction of premium which you will have to pay by taking 4 insurance cover of 5 lacs each.
Saturday, July 31, 2010
Opt for Higher sum Assured in term insurance, Pay less premium
Planning to take a term insurance? Have decided for the sum assured already? Wait.... please read the interesting facts below before purchasing Term insurance for yourself.
Please find below the table in which Premium for various amounts of two cheapest term insurance plans in the market, and surprisingly, its not that you pay higher premium for higher sum assured.
Thursday, July 15, 2010
An Interview with Raag Vaamdatt
Here is the excerpts from Interview with Raag Vaamdatt who runs and maintain his website http://www.raagvaamdatt.com and http://www.PaisaPlanner.com which are one of the topmost blog sites in Personal Finance with approximately 11000 registered readers and 1 lac page views per month.
He has recently left his lucrative well paying job in an MNC and has taken up the blogging full time.
Wednesday, June 30, 2010
LIC Jeevan Saral (Table No.165) Review
Jeevan saral(Table No.165) is a very simple and easy to understand Insurance Policy from LIC. It offer high coverage(upto 250 times of monthly premium) , liqidity and option to get additional cover in the form of riders.
This is an Endowment Assurance plan where the proposer has simply to choose the amount and mode of premium payment. The plan provides financial protection against death throughout the term of the plan.
Tuesday, June 29, 2010
New ULIP Norms / Guidelines by IRDA effective September 1 2010
Insurance watchdog IRDA on Monday tightened the norms for ULIPs (Unit linked Insurance Products) after winning the battle with the markets regulator SEBI over control over ULIPs. Please find the brief summary of new guidelines which which has to be adhered by the Life Insurance Companies before September 1, 2010.
Friday, June 25, 2010
New Income tax E-filing software from Income Tax Department include automatic calculation of tax and interest
With last date to file Income tax return is approaching nearby, i.e. 31st July, The Income Tax Department has modified the return preparation software to include automatic calculation of tax and interest and this is available for download free of cost.
New facility added in "My Account" allows registered E-filers to View the Tax Credit Statement (Form 26AS) to verify if the tax payments made by you or TDS deducted from salary or interest etc are correctly reported to the Department. This is crucial to ensure that you receive complete and accurate tax credit for tax payments and TDS reported by you in the I-T return. Please immediately contact the bank or deductor in case of any discrepancy or missing entries.
Thursday, June 24, 2010
Gold ETF's (Exchange Traded Fund) the best way to invest in gold
In this Article we would be discussing in detail about Gold ETF. As we all know that when we buy gold from a jeweller, there is no surity of the purity. When we buy Gold coins or bar through banks, we shell out around 15-20% higher price, however when we want to sell it back, bank will never purchase it . If you want to sell your coin or bar bought by the bank to the Jeweller, they will not give anything more than the market price.
Wednesday, June 23, 2010
Reasons why Gold should be integral part of our Investment Portfolio
In this article we will be discussing why gold should not be missed as an investment. In next article we will be discussing about ways of investing in gold and particularly ETF's (Exchange Traded Funds)
Gold has a low or negative correlation with most other asset classes, which means that its price changes are independent of price changes in other asset classes like equities or debt. Gold's low correlation with other assets is a function of the unique drivers of demand and supply. Adding gold to the portfolio in small percentages can help reduce overall portfolio volatility.
Tuesday, June 22, 2010
Complete information on New Pension Scheme (NPS) Tier 2 account
The NPS was launched on 1st May 2009 for all citizens on India. The offer document issued at the launch of NPS mentioned that under NPS two types of account would be available to the subscribers viz., Tier-I account-where you contribute your savings for retirement into a non-withdrawable account, and a Tier-II account –a voluntary savings account form which you are free to withdraw your savings whenever you wish.
Saturday, June 19, 2010
Complete information of Post office National Savings Certificate
Please find below the details of post office MIS
- Minimum INR. 100/- No maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-.
- 8% Interest compounded six monthly but payable at maturity. INR. 100/- grows to INR 160.10 after 6 years.
- One person can be nominated for certificates of denomination of INR 100 and more than one person can be nominated for higher denominations.
Friday, June 18, 2010
5-Year Post Office Recurring Deposit Account
Post office recurring deposit is small savings scheme promoted by Govt of India which can be opened in any of the post office. One can deposit as small as Rs 10 every month.
On maturity after 5 years, INR 10/- account fetches INR 728.90/-. Can be continued for another 5 years on year to year basis.Any individual (a single adult or two adults jointly) can open an account.
Features of post office recurring deposit
Post Office Senior Citizen's Saving Scheme
Senior Citizen's saving scheme is a social security tool given to senior citizens by govt. of india. Please find the features as under
- 9% interest per annum payable quarterly.
- Minimum Deposit: Rs 1000 and multiples thereof.
- Maximum Limit : 15 Lakhs.
- The scheme is for 5 years and can be extended for a further period of 3 years.
Premature closure is allowed after one year on deduction of 1.5% interest & after 2 years 1% interest.
Thursday, June 17, 2010
Decoding New version / Draft of New Direct tax Code 2011
The first draft of New Direct Tax Code, floated last year, drew flak after it proposed to tax various retirement / pension schemes at the time of withdrawal in the absence of any social security schemes like medical, old age benefit, death and disability benefit, unemployed person benefit as prevailing in developed countries practicing EET regime . Please refer my earlier post which provides detail description of Earlier Proposed Original New Direct tax code which was criticized specially for taxing retirement benefits. The revised draft, put for public discussion till June 30, retained the income tax exemption given to provident funds, pension funds at the time of withdrawal.
NPS ( New Pension Scheme ) set to become most attractive investment option in India
NPS (New Pension Scheme) launched by govt. of India in May last year which didn’t kicked of as expected is set to get lot of attraction after release of new draft of Direct Tax Code 2011. According to the revised draft of the Direct Tax Code that was released by the finance ministry the government proposes to extend the EEE method of taxation to Government Provident Fund (GPF), Public Provident Fund (PPF), and the New Pension Scheme (NPS). Al annuity schemes of Life insurance companies are brought under the EEE method of tax treatment. NPS will now enjoy level playing field with other retirement schemes available in the country like PPF, GPF and EPF. This will encourage long term savings by citizens of India who would like to spend their later half of life with regular income or lump sum corpus.
Wednesday, June 16, 2010
Various investments under section 80C
Under section 80C of the Income Tax Act, certain investments are deductible (up to a maximum of Rs 1 lakh) from gross total income. Section 80C benefit has been provided to encourage long term savings and investments. This limit is extended to everyone irrespective of their income levels and tax slab.
Please find various investment options under section 80C
Monday, June 14, 2010
Complete information on LTA (leave Travel Allowance) Tax Exemption
Leave Travel Allowance (LTA) is basically defined as the cost of travel granted to employees to travel anywhere in India, while on leave from work. The amount of exemption depends upon the mode of travel, and it is allowed only towards the travel fare, and not for boarding and lodging. It is allowed twice in a block of four calendar years. The current block is 2010-13. So, for the period 2010-13 one can claim this exemption for any two occasions.
Gratuity Tax Exemption limit raised to 10 lacs
Its a good news for all salaried class, the government has raised the income tax exemption limit on gratuity to Rs 10 lakh from Rs 3.5 lakh with effect from May 24.The Central Board of Direct Taxes has approved this which was being expected the day govt. announced the new ceiling of Rs 10 lacs in the month of february.
Friday, June 11, 2010
Broadband Wireless Access (BWA) Spectrum Auction India ends: And the winners are
Finally the result is out and here we see an unknown company Infotel Broadband Services winning PAN India License. According to the provisional results announced by Department of Telecommunications (DoT) The Infotel Broadband Services has won bid for all the 22 circles while Aircel won 8, Bharti Airtel and Qualcomm won in 4 circles, Tikona in 5 and Augere 1 circle. The Government run telecom operators BSNL and MTNL has been given spectrum already, will have to pay the equivalent of the winning bid in each service area.
Thursday, June 10, 2010
How to Pay Income Tax / Advance Tax online
What is e-payment of taxes?
This is a facility provided to the taxpayers to make income tax payments through internet, using net-banking facility.
How can I use this facility to pay income tax?
You can use the facility if -
a) You have a bank account with net-banking facility, and
b) Your bank is amongst the banks that provide the e- payment facility.
Whether it is mandatory to pay tax online?
How to file Income tax Return Online in India
Income Tax Department has introduced a convenient way to file Income Tax returns online using the Internet. Every new user has to register at https://incometaxindiaefiling.gov.in website in order to avail the e-Filing facility. After completing the registration process and logging in, the user may download the software tools from the download section. Based on all the relevant information the required ITR Form should be filled using the software provided. The software would generate the XML format of the return which should be uploaded on this website. On successful transmission of the return a receipt will be generated in the form of a provisional acknowledgement.
Wednesday, June 9, 2010
Now Post office are Point of presence for New Pension Scheme (NPS)
Its official now as the much awaited issue of lesser Points of Presence for New Pension Scheme (NPS) has been addressed to some extent as the The postal department has launched a new pension scheme for the public, specially service holders, who are able to deposit a minimum of Rs 500 per month as well as at-least Rs 6000/- annually, which is open for all citizens up to the age of 55 years.
All About Kisan Vikas Patra
Kisan Vikas Patra is one of the Post office deposit schemes. Please find below salient features of kisan vikas patra
Salient Features of Post Office Time Deposit Account
Please find the features of Post Office Time Deposit Account below.
Period | Rate of Interest |
One Year | 6.25% |
Two years | 6.50% |
Three years | 7.25% |
Five years | 7.50% |
Tuesday, June 8, 2010
Salient Features of Post Office Monthly Income Scheme (MIS)
Please find the Salient Features of Post Office Monthly Income Scheme (MIS) as under
- Interest rate of 8% per annum payable monthly.
- Maturity period is 6 years.
- Minimum investment amount is Rs.1000/- or in multiple thereof.
- Maximum amount is Rs. 4.5 lacs in single account and Rs. 9 lacs in a joint account.
Account can be opened by an individual, two/three adults jointly and a minor through a guardian.
Now check Income Tax Refund status online
The income tax department has launched a drive to file corrected returns with a view to do away with the problem of held-up refunds and the tax already paid not being credited to the assessees’ name. A large number of people whose tax is deducted at source did not get the payments credited which, in turn, held up refunds. It was because the National Securities and Depositories Limited (NSDL), which accounts the tax receipts, could not record the payments as I-T returns of many did not carry the permanent account number (PAN). In some cases, the returns were not filed at all, said a statement issued by the income tax department.
Monday, June 7, 2010
Know about Tax Deduction on House Rent Allowance (HRA)
House rent allowance (HRA) is received by the salaried class. A deduction is permissible under Section 10(13A) of the Income Tax Act, in accordance with Rule 2A of the Income Tax Rules. One can claim exemption on HRA under the Income Tax Act if he/she stays in a rented house and get a HRA from their employer.
Saturday, June 5, 2010
Public Provident Fund (PPF) at Glance
PPF is a scheme run by the Government of India, wherein you contribute every year and get specified rate of return. Since it is Govt. sponsored, it is also totally safe. You can be sure no one is going to run away with your money. You invest in it and you get a deduction on your income. Besides, the interest you earn on it is tax-free.
Please find the Summary of PPF account below
Govt Raises Threshold for Public Shareholding in Listed Companies
Govt Raises Threshold for Public Shareholding in Listed Companies All Listed Companies Required to Maintain 25% Public Holding
The Government has made amendments to the Securities Contracts (Regulation) Rules. The salient features of the amendment are as follows:
a) The minimum threshold level of public holding will be 25% for all listed companies.
b) Existing listed companies having less than 25% public holding have to reach the minimum 25% level by an annual addition of not less than 5% to public holding.
Friday, June 4, 2010
Power of compounding- Some amazing facts
If you are earning Rs 20000/- per month without any ancestral wealth, can you become a crorepati by savings? Appears to be a very silly question and everyone of us will laugh on this thought. But before doing that please go through few facts below
The wonder of compounding (in investing terms) is to make your money work, to transform it into a state-of-the-art, highly powerful income-generating tool. Compounding is the process of generating earnings on your asset's reinvested earnings. Compounding works on two basic premises: re-investment of earnings and time.
Thursday, June 3, 2010
Tax treatment of Home Loans
The Income Tax Act, 1961 provides tax benefits for assesses that have home loans. The home loan which has to be repaid to the bank in monthly installments. The installment consists of two components i.e. - interest and principal repayment. The bank gives a detailed worksheet of the loan calculation and of the bifurcation of the EMIs paid by the borrowers. These monthly repayments are qualified for deductions from income tax.
Monday, May 31, 2010
NPS Tier 2 Account would work exactly as Low cost mutual fund
To make the New Pension System (NPS) more attractive, PFRDA (Pension Fund Regulatory and Development Authority) has introduced the concept of Tier-2 account. This is to provide for withdrawals to meet financial contingencies.
Opening the Tier-1 account is compulsory for everyone opting for NPS. However, the Tier-2 account is optional for the investors, as it is a voluntary savings account from which the investor can withdraw money, any time and any number of times.
Saturday, May 29, 2010
NRI (Non Resident Indians) Investment: Query Corner and FAQ's
Who is a Non-Resident Indian (NRI)?
An Indian citizen or a foreign citizen of Indian origin who stays abroad for employment/carrying on business or vocation or under circumstances indicating an intention for an uncertain duration of stay abroad is a NON-RESIDENT INDIAN (NRI). (Those who stay abroad on business visit, medical treatment, study or such other purposes which do not indicate an intention to stay there for an indefinite period will not be considered as NRIs).
Who is a Person of Indian Origin (PIO)?
Friday, May 28, 2010
New ULIP norms would reduce Surrender Charges drastically on ULIP in initial years
Holders of unit-linked policies(ULIP) will in future get more of their money back if for any reason they are forced to surrender their policy within a couple of years.
New norms by the Insurance Regulatory & Development Authority (IRDA) now provide very strong incentive to insurers to ensure that policies do not lapse.
On 25th may 2010, the regulator unveiled new regulations on unit-linked insurance plans, capping the surrender charge on policies that are returned after a year at 15%.
New norms by the Insurance Regulatory & Development Authority (IRDA) now provide very strong incentive to insurers to ensure that policies do not lapse.
On 25th may 2010, the regulator unveiled new regulations on unit-linked insurance plans, capping the surrender charge on policies that are returned after a year at 15%.
Thursday, May 27, 2010
PFRDA to come up with new Guideline to prevent misuse of NPS Swavlamban
In order to propagate New Pension System (NPS) among workers in the unorganized sector, the government, in the Union Budget announced that it will contribute Rs1,000 per year for the next three years for every investment between Rs1,000 and Rs12,000 made by the unorganized sector employees.
But the scheme called “Swavalamban”, has left the pension regulator body, Pension Fund Regulatory and Development Authority (PFRDA), apprehensive with ways to ensure that the product is not misused and soon will be coming up guidelines regarding this.
Wednesday, May 26, 2010
Central Government Employees medical scheme
Government introduce a new Medical Scheme for Central Government Employees and Pensioners as in the name of Central Government Employees and Pensioners Health Insurance Scheme (CGEPHIS). In all over India, pensioners are getting meager amount of Rs.100 as Medical Allowance (except CGHS beneficiaries). It is estimated that approximately 17 lakh serving employees and 7 lakh pensioners shall be offered this Scheme and Government plan to enroll all serving employees and pensioners on compulsory / optional basis.
Some key points regarding the scheme:-
CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS HEALTH INSURANCE SCHEME (CGEPHIS)
Passive income avenues to boost your savings and lifestyle
Its a matter of thought that out of two persons working in the same office, one achieves and lives as much luxurious life as the other one is not able to. Probably the first person is utilising his salary smartly in order to generate some passive sources of income, thus leading to a highly contented life. Generation of passive income can help in creating financial freedom and flexibility through the creation of alternative sources of income, therefore, complementing one's salary income.
Here in this article we will be discussing some tips on how to generate passive income, and this may increase one’s wealth and consumption capabilities too.
Tuesday, May 25, 2010
NBFC: Features Amendments in Infrastructure Finance companies
RBI has, on 11 February 2010, amended the Non-Banking Financial (Non- Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 [NBFC Directions] to introduce a 4th category of Non Banking Financial Company [NBFC] viz. “Infrastructure Finance Company” [IFC]. This is in addition to the existing 3 categories of NBFCs viz. Asset Finance Company (AFC), Loan Company (LC) and Investment Company (IC).
Salient features of the amendments to the NBFC Directions are as under:
Meaning of IFC:
IFC has been defined to mean a NBFC which deploys at least 75% of its total assets in “infrastructure loans”.
Indian market Snapshot for May 2010
3G auctions to aid biggest India deficit cut in 19 years
Finance Minister Pranab Mukherjee said India’s auction of wireless air waves may pay for its biggest budget-deficit reduction in 19 years, as the government expects to earn at least 600 billion rupees ($13.3 billion) from the sale. Earnings from the auction may be “over and above” the budget estimates for the current year. Companies such as Vodafone and Bharti Airtel may pay 250 billion rupees more than the government earlier estimated for the right to provide high-speed mobile services. Higher revenue will help Mukherjee slash the budget shortfall to 5.5 percent of gross domestic product in the current financial year.
Calculation of Retirement benefit for Govt employees
Provident Fund (PF), Pension Fund and gratuity are components of retirement benefit schemes. The Employees' Provident Fund and Miscellaneous
Provisions Act provides for compulsory contributory fund for the future of an employee after his retirement or for his dependents in case of his untimely death.
Every factory engaged in any industry specified in Schedule I in which 20 or more persons are employed, every establishment employing 20 or more persons or class of such establishments which the Central Government may notify, any other establishment so notified by the Central Government even if employing less than 20 persons is covered.
Monday, May 24, 2010
Mukesh and Anil Ambani Come togeather: Good news for markets as well as India
It was a fight between two eminent business honchos. In a major development on the sibling rivalry between Mukesh and Anil Ambani - they decided to bury their differences and create a harmonious environment of co-operation and collaboration between their groups.
As stated by Anil Ambani, all existing non-compete agreements between the two groups executed in January 2006 have been cancelled. This harmony followed only after the Supreme Court declined to give any relief to younger brother in the gas dispute. As per the Supreme Court order, RIL (Mukesh) and RNRL (Anil) will expeditiously negotiate gas supply arrangement and hope to conclude negotiations very soon.
As stated by Anil Ambani, all existing non-compete agreements between the two groups executed in January 2006 have been cancelled. This harmony followed only after the Supreme Court declined to give any relief to younger brother in the gas dispute. As per the Supreme Court order, RIL (Mukesh) and RNRL (Anil) will expeditiously negotiate gas supply arrangement and hope to conclude negotiations very soon.
Alternative Investment options in India For HNI's(High Networth Individuals)
Private Equity
Private equity funds typically make investments in companies not listed on public stock exchanges. They offer high return opportunities due to their access to dynamic, privately held companies and their ability to create value in them. We help you choose exceptional private equity funds with high growth potential.
Real Estate
Real Estate has long been considered the most tangible source of wealth accumulation. With land growing increasingly scarce in India, the value of real estate holdings is expected to grow. Apart from a few bubbles such as the mid-90’s, this has largely been true. We help you choose the best option in real estate via real estate funds or physical real estate based on your needs.
Gold
Gold is regarded as one of the best hedging tools
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