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Apr82014 by wealth18.comNo Comments

Who can submit Form 15G / 15H to avoid TDS on Bank FD ?

Taxation

Banks are required to deduct Tax (TDS) @ 10 % if the interest earned on FD exceeds Rs 10,000 in a financial year. However, if you meet certain conditions, you can submit Form 15G / Form 15H to the Bank & they will not deduct any TDS. Read my post - How to avoid TDS on Bank FD. Form 15G can be submitted by Resident, non-senior citizen investor if following conditions are fulfilled: 1) The final tax on his estimated total income should be NIL ; and 2) The aggregate of the interest etc. received during the financial year should not exceed the basic exemption slab Form 15H can be submitted by Resident senior citizen investor if following condition are fulfilled: 1) The final tax on his estimated total income should be NIL ; and Senior Citizen is person who is atleast 60 years of ...

Apr82014 by wealth18.comNo Comments

NEFT & RTGS Transfer – meaning, differences, charges & process

How to Series

In banking context, you must have heard phrases like “NEFT transfer”& “RTGS”. In this post, we will discuss – what is NEFT & RTGS, how they are different, charges, and process of using NEFT & RTGS etc. A. What is NEFT & RTGS? National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS) are two main system of transferring funds from one bank to another. These systems are managed by RBI and it allows transferring funds across banks within the country. B. NEFT - National Electronic Fund Transfer NEFT operates on a deferred net settlement (DNS) basis and settles transactions in batches. All transactions received till a particular cut-off time is settled in batches. Presently, NEFT operates in hourly batches - there are twelve settlements from 8 am to 7 p...

Apr82014 by wealth18.comNo Comments

Tax Free Bonds – Should you invest in these?

Bonds

Tax free bonds are flavour of the market since 2012 with many Government & PSU companies raising thousands of crores from market via these Bonds. There Bonds are offering good returns for long duration as well as tax free income. In 2012-2013, Around 10 government owned companies raised Rs 50000 crores via tax-free bonds. Positive Points Safe & Secure - All tax-free bonds are issued only by government-owned companies. So they are unlikely to default. These are normally rated AA or higher. Tax FREE Interest - Interest received on these bonds are fully exempt from income tax. ( as per Section 10 (15) (iv) (h) of Income Tax Act, 1961) No TDS - Since the interest income on these Bonds is exempt from tax, no Tax Deduction at Source (TDS) is required. No Wealth Tax - Wealth Tax...

Apr72014 by wealth18.comNo Comments

Mutual Funds – Taxation Aspects

Mutual Funds, Taxation

In this post, I will explain the Taxation aspects of Income / Returns from Mutual Funds. The taxation depends on type of Mutual fund scheme you have invested in. The taxation will be different for equity schemes, and non equity schemes ( for e.g debt schemes, money market etc) Broadly, there can be following 2 type of Income from Mutual Funds: Dividend Capital Gains A. Dividend Received - Tax Free in hands of investor Any dividend received from Mutual Funds is exempt from Tax in hands of investor. So , if you have selected Dividend Option while investing in MF, then any dividend received is tax free for you. Actually, the interest on such dividend is already paid by Mutual fund company via Dividend Distribution Tax (DDT) . Paying such tax impact returns of your MF scheme. DD...

Apr72014 by wealth18.comNo Comments

HDIL – Nomura & Kotak picked up stakes

Stocks

5/4/2014 - Nomura Singapore Limited bought 44,11,000 shares of Housing Development and Infrastructure at Rs 67.45. This represents 1% stake in Mumbai based real estate firm. 27/Mar/2014 - Kotak Securities purchased 21.28 lakh shares of the real estate firm, constituting 0.5 percent stake at Rs 51.56 apiece. The share on Friday closed at Rs 69.45, up 16.23 percent after hitting a 52-week high of Rs 70.35. 52 week low - Rs 26 52 Week High - Rs 76

Apr72014 by wealth18.comNo Comments

Rakesh JhunJhunwala bought 1.85% in Prakash Industries

Stocks

4/April/2014 Rakesh JhunJhunwala has picked up 25 lakh shares, constituting 1.85 % stake of the company at Rs 58.96 Kolkata-based Nilkanth Fincon Private Limited, one of the non-promoter shareholders, has reduced its equity shareholding by 2.5 % in steel and power company Prakash Industries on Friday. Nilkanth Fincon sold 34,02,000 equity shares at Rs 59.18 apiece via block deal on the NSE. As of December 2013, it held 2.56 % stake in the company. However, . The share on Friday closed at Rs 68.70, up 20 percent. Trailing 12-month (TTM) EPS - Rs 11.13 per share. (December, 2013). The stock's price-to-earnings (P/E) ratio was 6.17. The latest book value of the company is Rs 155.67 per share. At current value, the price-to-book value of the company was 0.44. The dividend yield of the ...

Apr32014 by wealth18.comNo Comments

PE Firm Chryscapital’s Investments in India

Stocks

Private equity firm ChrysCapital has over $2.5 billion assets under management in India. Some of its investments in listed companies in India are as under Amtek Group Gammon HCL Technologies Hexaware ING Vysya Bank JMT Auto KPIT Cummins Pratibha Industries Simplex Infra Torrent Pharma In April 2014, they have made investment of $40 million in Torrent Pharma. ChrysCapital is largest PE investor in domestic pharma companies.

Apr22014 by wealth18.comNo Comments

Now you need to send ITR V by “Speed Post” only

Taxation

Income Tax Departmet has now asked assessees filing returns online to send ITRV by "speed post" only. Earlier, ITR V could be send by either Ordinary Post or Speed post. When you file return online, ITR V (Acknowledgement) is generated, which needs to b signed by you and send it to Central Processing Centre (CPC) of the department in Bengaluru. IT department has now changed the procedure and has disallowed sending the paper statements through ordinary post or to a designated post box number. You need to send ITR V by Speed Post only. In order to prevent the hassle of sending by post a hard copy of e-filed return, the Income Tax department is also planning to bring in the facility of electronic signatures for taxpayers to endorse their bonafides.

Mar282014 by wealth18.comNo Comments

NRI Bank Accounts – NRE / NRO / FCNR

NRI

As NRI, you can open following different type of Bank accounts in India based on your requirements: NRO - Non-Resident Ordinary Account NRE - Non Resident External Account FCNR (Foreign Currency Non Resident) NRE Account vs NRO Account vs FCNR Account - Key Features NRE NRO FCNR Type of Account Savings, Current, FD Savings, Current, FD FD Held in Currency INR INR USD, GBP, EUR, AUD, CAD Source of Funds Remittance from Overseas or Transfer from existing NRE/ FCNR Accounts Local Income in India (Rent, interest or dividend income). Transfer from existing NRE Remittance from Overseas or Transfer from existing NRE/ FCNR Accounts Deposit of Rupee funds generated in India No Yes No Repatriation Fully repatriable – both principal and Interest Restricted repatri...

Mar272014 by wealth18.comNo Comments

e-Gold by National Spot Exchange (NSEL) – Benefits, Buying Process, Charges & Tax aspects

News

All Trading on NSEL is currently suspended. NSEL went bust in July 2013 after two dozen counterparties declared their inability to settle payments amounting to Rs 5,600 crore to more than 13,000 investors. UPDATE - 27 Mar 2014 NSEL is grappling with a payment crisis for settling dues worth Rs. 5,600 crore after it suspend trading activities in July 2013 following a government directive. The Forward Markets Commission (FMC) on Mar 27 2014 allowed scam-hit National Spot Exchange Ltd (NSEL) to convert e-series gold contracts into physical form - a move that would benefit 33,000 investors. --------------------------- Previously we discussed the benefits of trading / investing in electronic form of Gold (Gold ETF, Gold Funds etc) over buying physical gold, coins, jewellery etc. In this post...