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.

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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. 
  
  

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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.

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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.

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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

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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.

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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.

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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.

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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?

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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.

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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.

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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

• Minimum Investment Rs. 500/- No maximum limit.
• Rate of interest 8.40% compounded annually.
• Money doubles in 8 years and 7 months.
• Two adults, Individuals and minor through guardian can purchase.

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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%

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Salient Features of Post Office Monthly Income Scheme (MIS)

Please find the Salient Features of Post Office Monthly Income Scheme (MIS) as under

1. Interest rate of 8% per annum payable monthly.
2. Maturity period is 6 years.
3. Minimum investment amount is Rs.1000/- or in multiple thereof.
4. Maximum amount is Rs. 4.5 lacs in single account and Rs. 9 lacs in a joint account.
5. 
   
   Account can be opened by an individual, two/three adults jointly and a minor through a guardian.
   
   
   

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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.

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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.

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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

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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.

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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. 

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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.

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