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Feb162014 by wealth18.comNo Comments

IIFCL Tax Free Bonds Tranche 3 – Feb 2014 – Details

Bonds

Review of - IIFCL Tax Free Bonds - Tranche III - February 2014 India Infrastructure Finance Company proposes to raise upto Rs 2823 crore through tax free bonds issue of secured redeemable non-convertible debentures. (Tranche III) The tax free bonds issue would open from 17-Feb-2014 and closes on 14-Mar-2014 (May close early. Last tranche oversubscribed on Day 1) Indian Infrastructure Finance Co Ltd (IIFCL) Tax Free Bonds - Tranche 3 Details Series I Series II Series III Tenor 10 Years 15 years 20 years Interest Paid Annual Annual Annual Coupon Rate 8.41% 8.80% 8.80% Effective Pre-Tax Yield (30% tax slab) 12.17% 12.74% 12.74% Effective Pre-Tax Yield (20% tax slab) 10.59% 11.08% 11.08% Effective Pre-Tax Yield (10% tax slab) 9.38% 9.81% 9.81% Minimum Appli...

Jan152014 by wealth18.comNo Comments

Check your current Cheque book – Is it valid (new CTS) ?

News

RBI has implemented the new Cheque Truncating system (CTS) and from 1st January 2013, only the new CTS complaint cheques will be honored. Update: The timeline has been extended mnay times from 31-Mar-2013 to 31-Jul-2013 to 31-Dec-2013 Received the following SMS from bank, "Dear Customer, please deposit CTS compliant cheques(i.e cheques with CTS India watermark) for your credit card repayments from 31 December, 2013 to avoid delayed clearance and late payment fees. Non CTS compliant cheques ( cheques not compliant to the cheque truncation system(CTS) 2010 standards) will be cleared thrice a week only, until 30 April, 2014." So, the validity of Non CTS cheques is again extended, this time upto 30th April 2014. If you haven't switched to CTS cheques, you have 4 more months. A. Why this ...

Jan132014 by wealth18.comNo Comments

8.75% Interest on PF for 2013-2014

News, PF

The Employees' Provident Fund Organisation's apex decision making body - Central Board of Trustees (CBT) – met on Monday to decide on the PF interest rate for this fiscal. Labour and employment minister Oscar Fernandes said - Retirement fund body EPFO on Monday raised the PF interest rate from 8.5 percent to 8.75 per cent for 2013-14. The EPFO's Central Board of Trustees met on Monday and approved the interest rate that will now be forwarded to the finance ministry for notification. The EPFO, which is estimated to have an income of Rs 20,796.96 crore in the current fiscal, needed Rs 20,740 crore to pay 8.5 per cent interest to the subscribers. According to the agenda for the trustees' meet, 8.5 per cent interest would have left a small surplus of Rs 56.96 crore. According to estimates, hi...

Jan62014 by wealth18.comNo Comments

Rules to check before making annual Tax / Investment Declaration to employer

Taxation

In January, most employers ask their employees to submit the investment declaration along with the proof every year. If you do not submit this declaration, the employer may deduct higher TDS amount. What needs to be declared? Employees should declare the tax saving investments and other deductions which they intend to claim in current financial year. What will happen if the declaration & proofs are not submitted? If you fail to submit the investment details & proof, the employer will not give you tax benefit for such investments and will deduct higher TDS Amount in coming month’s salary. You will then need to claim the refund later from Income Tax dept by filing Income tax return. Can I claim refund from Income Tax department later? Yes, you can file Income Tax return and c...

Jan52014 by wealth18.comNo Comments

IRFC Tax Free Bonds – Jan 2014 – Details

Bonds

IRFC is offering tax-free secured redeemable non convertible bonds to raise Rs 1500 crore, with an option to retain oversubscription upto Rs 8663 crore. The issue will be open during 06-Jan-2014 to 20-Jan-2014 (extended to 7-Feb-2014) Indian Railway Finance Corporation (IRFC) Tax Free Bonds Details Series I Series II Tenor 10 Years 15 years Interest Paid Annual Annual Coupon Rate 8.48% 8.65% Effective Pre-Tax Yield (30% tax slab) 12.27% 12.52% Effective Pre-Tax Yield (20% tax slab) 10.68% 10.89% Effective Pre-Tax Yield (10% tax slab) 9.45% 9.64% Minimum Application Rs 5000 Maximum Application Rs 10 lacs ( Retail) Issue Opens on 06-Jan-04 Issue Closes on 07-Feb-14 About the Company IRFC primarily funds buying of locomotives, coaches and wagons f...

Jan12014 by wealth18.comNo Comments

Where should I invest my money?

Bonds, Featured

There is a famous saying in financial world that you will become rich by “Investing” not only “Saving”. Well, Isn’t Investing & Saving is the same thing? Actually No, when you save money, you put it in extremely safe, liquid option like Bank Account, Fixed deposit etc. Saving is mainly to keep pace with Inflation or short term goals or for emergency. When you want to invest, you look around for various available options which can grow your wealth. Based on the goal horizon & risk appetite, you can invest your money in options like Shares, Mutual Funds, Property etc A. Fixed Income Savings Bank Account Sweep-in FD Account Fixed Deposits Recurring Deposit Public Provident Fund (PPF) PO National Savings Certificate – NSC RBI Tax free Bonds Corporate Non-Convertible deben...

Jan12014 by wealth18.comNo Comments

Personal Finance resolutions for New Year

Featured

Happy New Year !!! January is the month of resolutions. Most people make New Year's resolutions focussing on physical fitness. At the same time, keeping eye on your financial health is very important. So here are financial resolutions you should make for this new year. 1. I will prepare a master list of all my financial assets Prepare a list of all your investments (shares, mutual funds, NSCs, bank FDs, bonds etc), DMAT accounts, insurance (LIC policies, ULIP, health insurance etc), loans, etc. To start with, write down all these data into an excel file or physical diary including details like document number, expiry date, agent contact etc. Check and update the correct the communication address, phone number, email ID, nomination details for all your assets. Keep original documents in...

Jan12014 by wealth18.comNo Comments

NRI – How to claim Income Tax refund

NRI, Taxation

Any interest earned in NRO Account is taxable and TDS of 30% flat is deducted by the Bank. There are few ways by which you can reduce this tax amount. 1) Check for DTAA - If the DTAA between India and country of your residence allows a lower rate of TDS India has Double Taxation Avoidance Agreement (DTAA) with many countries under which a lower rate of tax is deducted. For e.g. if you are residing in US or UK, a concessional rate of 15% will de deducted (instead of 30%) provided you complete the documentation formalities. You will need to submit : PAN Card Copy DTAA Declaration form Original or certified true copies of the ‘Tax Residency Certificate’ (TRC) from the income-tax authorities. For tax residents of countries where there is no income tax, a “Self-declaration” shall be su...

Jan12014 by wealth18.comNo Comments

Type of Life Insurance Policies – You must know

Insurance

Objective of this article To briefly explain the Life Insurance in India and Insurance companies available To briefly explain the type of insurance policies available and their key features Should you take a Life Insurance Policy? Have you secured your family in case something happens to you? If not, you should consider taking a Life Insurance Policy. What is Life Insurance? Life insurance is a policy which helps beneficiaries financially after the policyholder dies. It is a contract between the policy holder (you) and the life insurance company, which assures the paying out of a certain amount in the event of the policy holder's death / terminal / critical illness. The premium of life insurance is dependent on your age, type of coverage, amount of coverage you need. Life Insurance ...

Jan12014 by wealth18.comNo Comments

Top 10 Reasons to Invest via Mutual Funds

Mutual Funds

Mutual funds are one of the best options available to small retail investors to diversify their investment and earn superior returns. Through Mutual Funds, you can invest in various types of products - for e.g. Equities, Bonds, Fixd Income, Gold, Commodities companies, Index etc. In this post, I have tried to list some major benefits of investment in mutual funds 1) Professional Expertise As we can’t be experts in everything, so it is better to leave certain things with professionals. Fund managers are highly qualified & experienced, track the market activities closely, speak to company management on on-going basis, understand the economic & sector indicators better and are in better position for investment decision making. For e.g. Prashant Jain of HDFC Mutual Fund is...