2013 - Wealth18.com

Feb202013 by wealth18.comNo Comments

HUDCO Tax free Bonds 2013 Details – Tranche II – Details & Review

Bonds

UPDATE - For HUDCO Tax free bonds in Sep 2013- Oct2013, please go to this link Below, post is for HUDCO bonds issue in Feb-Mar-2013 In this week, there is wave of second tranche of Tax free bonds. PFC, HUDCO, REC, IRFCare launching second round (tranche) of tax free bonds, Housing and Urban Development Corporation (Hudco) is targeting to raise up to Rs 2,805 crore through the second tranche of its public issue of tax-free bonds. In the first tranche, which was closed on February 7 2013, the company had raised Rs 2,195 crore. The second tranche would open from Feb 21 and close on March 15. The issue size is Rs 500 crore with an option to retain oversubscription up to Rs 2,805 crore About the Company HUDCO is a techno-financial institution engaged in the financing and promotion of housing ...

Feb202013 by wealth18.comNo Comments

REC Tax Free Bonds Issue 2013 – Tranche II – Details & Review

Bonds

In this week, there is wave of second tranche of Tax free bonds. PFC, HUDCO, REC, IRFC are launching second round (tranche) of tax free bonds, REC - Rural Electrification Corporation is targeting to raise up to Rs 2582 crore through the second tranche of its public issue of tax-free bonds. The first tranche was closed in Dec 2012. The second tranche would open from Feb 25 and close on March 15 2012. The issue size is Rs 100 crore with an option to retain oversubscription up to Rs 2,482 crore. About the Company REC is a Navratna Central Public Sector Enterprise under Ministry of Power. Company's main objective is to finance and promote rural electrification projects all over the country. It provides financial assistance to state Electricity Boards, State Government Departments and Rural el...

Feb152013 by wealth18.comNo Comments

Rajiv Gandhi Equity Savings Scheme – RGESS – Tax Saving Option

Mutual Funds

Rajiv Gandhi Equity Savings Scheme (RGESS) – this new tax saving scheme was introduced in 2012 Budget to attract retail investors to invest in Equity, directly or indirectly. RGESS scheme was introduced in 2012 budget, but the details of this scheme were made available only in Sep 2012. Presently, only 3-4% of Indian household savings is going into equities as compared to 42% in the US and 14% in China How much is the Tax Benefit? Under section 80CCG of the IT act 1961, an investor will get a tax deduction of 50% on the Investments made under RGESS. However, the maximum investment amount eligible for deduction is Rs 50, 000 or maximum tax exemption of Rs 25000. This tax exemption is over & above limit of Rs 1 lakh under section 80C. See my other post on - Tax saving op...

Jan172013 by wealth18.comNo Comments

IRFC Tax free Bonds 2013 Issue – Details & Review

Bonds

(Last Date for IRFC Tax free Bonds is extended to 8-Feb-2013) Indian Railway Finance Corporation (IRFC’s) tax-free bond issue is set to hit the market between 21-29 January 2013. IRFC is offering tax-free secured redeemable non convertible bonds to raise Rs 1000 crore, with an option to retain oversubscription upto Rs 8886.40 crore. The issue is similar to previous Bonds of HUDCO, REC, PFC & IIFCL. However, HUDCO is offering better rates. Check my post on HUDCO issue. Last Date for HUDCO is also extended to 7-Feb-2013 About the Company IRFC primarily funds buying of locomotives, coaches and wagons for the Indian Railways. It receives lease rentals from the Railways, which is accounted for in the Railway Budget. This ensures that the loans are securitised against rollin...

Jan12013 by wealth18.comNo Comments

When do you need a PAN Card?

Taxation

1. What is PAN PAN is short form of "Permanent Account Number" . It is a 10 digit alpha-numeric unique number allotted by Indian Income Tax Department. It is issued in the form of a laminated card. The PAN is unique, national, and permanent. It is unaffected by a change of address, even between states. 1a. PAN Structure PAN structure is as follows: ABCPG9999K: First five characters are letters, next 4 numerals, last character letter First 3 characters - are running series - AAA to ZZZ Fourth character - depends on catergory og PAN owner C — Company P — Person H — HUF(Hindu Undivided Family) F — Firm A — Association of Persons (AOP) T — AOP (Trust) B — Body of Individuals (BOI) L — Local Authority J — Artificial Juridical Person G — Govt Fifth character - Surname init...

Jan12013 by wealth18.comNo Comments

Should you invest in Gold ?

Banking

With gold prices touching new highs, you must be regretting for not buying gold when it was “cheaper” 2-3 years ago. You must be thinking – “Should I buy gold now before any further increase in prices?” Government has hiked the import duty in gold from 4% to 6% to curb import of gold. (ET 21-Jan-2013). Why government wants to restrict import of gold? In this post, I have tried to discuss these questions and various other aspects related to gold investment. ============================================================================ We, Indians, love Gold and made India - the world's largest consumer and importer of gold. About 40 per cent of the world's annual gold production is consumed by India and China. In 2011 & 2012, India imported approx. 1000 tonnes ($58 billion) & 800 ...

Jan12013 by wealth18.comNo Comments

Basics of Mutual Fund

Mutual Funds

I remember, when I advised one of my friends to invest via Mutual funds, he replied - "I am afraid of share market and that's why I don't want to invest in Mutual Funds. " Do you also think, investing in mutual funds means investing in share market and it is as risky as share market. Then you are not correct and need to understand the basics of Mutual Fund. It is a Myth that : Mutual Funds means Share Market. Mutual Fund by itself is not an Investment but it is a way to invest in other products like Equity (Shares), Fixed Income, Commodity (Gold), Index, etc Size of Mutual Fund Industry in India As per AMFI, the total Funds under management as on 31-March-2012 is Rs 587,271 crores There are 44 mutual fund companies in India operating 1000+ mutual funds schemes under various categories. Wh...