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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...

Jan12014 by wealth18.comNo Comments

How to use Sweep-in facility in HDFC bank via netbanking?

How to Series

In my other post,I explained How you can earn upto 9% on your savings bank account using Auto sweep / sweep-in facility (Read Full Post). In this post, I have provided step-by-step guide to use the sweep-in facility in your HDFC Bank Account via NetBanking. HDFC Bank provides this facility to all its customers who have NetBanking facility. (holding pattern should be SINGLE & not Joint). I have savings account with HDFC bank and it is very simple to use this facility. Step 1: Go to “Fixed Deposit” Section – Open Fixed deposit Enter – Nature of Deposit – Reinvestment of Interest Step 2: Activate Sweep-in on this FD Once the FD is made online, then go to Option – “Fixed Deposit Sweep-in” and enable the Sweep-in on that FD. It will allow sweep-in the amount from this FD to Sa...

Dec312013 by wealth18.comNo Comments

2013 – Top Large Cap, Mid Cap & Small Cap Stock Recommendations (for Medium to Long term)

Stocks

In this post, I am trying to compile shares recommendations by reputed brokerage houses for medium to long term investment. These includes Large Cap , Midcap & small cap shares. I will be updating this post periodically to include new recommendations. DISCLAIMER: These stocks are recommended by Brokerage houses and compiled from popular websites like MoneyControl, ET etc for benefit of members. These are NOT our views. 11-Feb-2014 ET Apollo Hospitals (Target 1150) Yes Bank (Nomura Buy - Target 550) Bank of Baroda (KR Choksey, Target 650) Cadila Healthcare (Kotak, target 920) Kotak Mahindra (HdfcSec , Target 729) Top 10 midcap stocks which can return over 20% in 9-12 months (ET 12 Feb 2014) Here is a list of top ten midcap ideas to hold for a period ...

Dec282013 by wealth18.comNo Comments

NHB Tax Free Bonds – Dec 2013 to Jan 2014 – Details

Bonds

National Housing Bank (NHB) is targeting to raise up to Rs 1,000 crore with an option to retain over-subscription up to Rs.2,100 crore. The issue is open from 30-Dec-2013 to 31-Jan-2014 On 1st day of issue itself, it is oversubscribed by 2.08 times the issue size National Housing Bank (NHB) Tax Free Bonds Details Series I Series II Series III Tenor 10 Years 15 years 20 years Interest Paid Annual Annual Annual Coupon Rate 8.51% 8.88% 9.01% Effective Pre-Tax Yield (30% tax slab) 12.32% 12.85% 13.04% Effective Pre-Tax Yield (20% tax slab) 10.72% 11.18% 11.35% Effective Pre-Tax Yield (10% tax slab) 9.49% 9.90% 10.04% Minimum Application Rs 5000 Maximum Application Rs 10 lacs ( Retail) Issue Opens on 30-Dec-13 Issue Closes on 31-Jan-14 About the Com...

Dec152013 by wealth18.comNo Comments

New Rule for HRA exemption – Landlord’s PAN must when rent paid per annum is Rs 1 lakh

Taxation

Till now, employees were required to submit the rent agreement / stamped rent receipts etc, to their employer to get HRA exemption. In FY 2011-2012, Landlord’s PAN was made mandatory if rent paid was more than Rs 180000 per annum (Rs 15000/ month). But now from FY 2013-2014, if annual rent paid is more than Rs.1 lakh per annum (i.e. Rs 8333 per month) , it is mandatory for the employee to give PAN of the landlord. What is this new circular ? “” In a recent circular from Central Board of Direct Taxes (CBDT) NO 08 2013 F No 275 192 2013 IT B; if annual rent paid by the employee exceeds Rs. 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along ...