wealth18.com - Wealth18.com

Sep182013 by wealth18.com1 Comment

FCNR Deposit with Forward Cover / Swap – yield 14% – Should NRIs invest ?

NRI

Following the sharp depreciation of INR in July – Aug 2013, RBI has taken number of steps to stabilise the currency. To attract foreign currency, interest rate on FCNR Deposits is increased by 1% for tenure of 3-5 years deposits. Earlier, for FCNR deposits for 3-5 years, Banks could offer LIBOR + 3%, now they can offer LIBOR + 4% RBI has also allowed banks to increase NRE FD Rates for tenure of 3 years or more. Read my other article - Comparison of NRE FD Rates April 2014 Structured Product for NRIs - FCNR Deposit with Forward Cover / Swap Many banks are offering a structured product combining FCNR Deposit and Forward Cover and offering a yield of 14%, which is risk free & tax free. If you have NRE Account with bank, you might have received similar mailer from them. 14% yield… risk ...

Sep162013 by wealth18.comNo Comments

HUDCO Tax Free Bonds Tranche 1 – Sep 2013 – Details

Bonds

Housing and Urban Development Corporation (Hudco) is targeting to raise up to Rs 4810 crore through the second tranche of its public issue of tax-free bonds.The Finance Ministry has allowed Hudco to raise Rs. 5,000 crore through bonds during 2013-2014, of which Rs. 191 crore has been raised last month through private placement to institutional investors. The tax free bonds issue would open from 17-Sep-2013 and close on 14-Oct-2013 The issue size is Rs 750 crore with an option to retain oversubscription up to Rs 4810 crore CARE has given credit rating of 'CARE AA+' while IRRPL has given 'IND AA+ HUDCO Tax Free Bonds Details Series I Series II Series III Tenor 10 Years 15 years 20 years Interest Paid Annual Annual Annual Coupon Rate 8.39% 8.76% 8.74% Effective Yield ...

Sep132013 by wealth18.comNo Comments

India Infoline (IIFL) NCD Sep 2013 – Details & Review

Bonds

India Infoline is raising Rs 1050 crores through issue of debentures offering 12% for 3 & 5 years tenure. Issue open & Close : 17th Sep to 4 Oct 2013 Type of Instruments – Secured & UnSecured Redeemable NCDs Size of Issue - Rs 525 crore through this issue, with an option to retain oversubscription upto Rs 525 crore, aggregating to a total of upto Rs 1050 crore. Listing – Proposed to be listed on BSE / NSE Credit Rating – CARE AA by CARE & BWR AA by Brickwork Investment options – Monthly / Annually / Interest for 3 years & 5 years About Company IIFL is a subsidiary of India Infoline Limited (“IIFL”), a diversified financial services company. It is a non-deposit taking NBFC focusing on Mortgage Loans, Commercial Vehicle Finance, Gold Loan, Capital Market Finance and H...

Sep92013 by wealth18.comNo Comments

SREI Infra Finance NCD Sep 2013 – Details & Review

Bonds

SREI Infrrastructure Finance has opened its public issue of NCDs on 26 Aug 2013 and it closes on 17-Sep-2013 Type of Instruments – Secured Redeemable NCDs Size of Issue - Rs 200 crores Listing – Proposed to be listed on BSE Credit Rating - AA-/negative by CARE and AA by BRICKWORK Investment option – Monthly / Annually / Cumulative Interest for 3 yrs, 5 yrs & 6 years About Company SREI is a Public Financial Institution (PFI). The company provides financial services to its customers engaged in infrastructure development and construction, with particular focus on power, road, telecom, port, oil and gas and special economic zone (SEZ) sectors in India with a medium to long term perspective. Total income on a standalone basis for the period ended March 31, 2013 and March 31, 2012 stood a...

Sep92013 by wealth18.comNo Comments

Muthoot Finance NCD Sep 2013 – Details & Review

Bonds

Muthoot Finance has opened its public issue of NCDs on 2-Sep-2013 & it closes on 16-Sep-2013 offering 11 investment options with yield upto 12.55% Type of Instruments – Secured & UnSecured Redeemable NCDs Size of Issue - Rs 150 crore through this issue, with an option to retain oversubscription upto Rs 150 crore, aggregating to a total of upto Rs 300 crore. Listing – Proposed to be listed on BSE Credit Rating - AA-/negative by CRISIL and AA-/negative by ICRA . Investment options – Monthly / Annually / Cumulative Interest for 24 months, 36 months, 60 months , 72 months About Company Muthoot Finance is the largest gold financing company in India in terms of loan portfolio. The company provides personal and business loans secured by gold jewellery, or gold loans, primarily to indivi...

Aug282013 by wealth18.comNo Comments

REC Tax Free Bonds – Aug 2013 – Details

Bonds

State-run Rural Electrification Corp (REC) plans to raise Rs. 3,500 crore from the market which is inclusive of the green-shoe option of Rs. 2,500 crore. The issue is open on 30-Aug-2013 & expected to be oversubscribed and will perhaps end before its schedule closing date of 23 September, 2013. Issue Open on 30-Aug-2013 Issue Closes on 23-Sep-2013 (First-come-first-serve) CRISIL, CARE, India Ratings and ICRA have given the high 'AAA' rating to the bonds. What is the interest rates offered on these REC tax free Bonds? Options Series 1 Series 2 Series 3 Tenure 10 years 15 years 20 years Coupon rates (retail individual investors) 8.26% 8.71% 8.62% Effective yield - 30.9% tax bracket 11.95% 12.60% 12.47% Effective yield - 20.6% tax bracket 10.40% 10.97% 10.86...

Jul312013 by wealth18.comNo Comments

Last date for filing income tax returns ITR for AY 2013-2014 extended to August 5 2013

News

The government has today extended the last date for filing of income tax returns by 5 days to August 5 2013. The due date, which was today, has been extended in wake of "unprecedented surge" in number of I-T returns being filed electronically. "As a measure of taxpayers convenience, it has been decided to extend the due date of filing of returns from July 31, 2013 to August 5, 2013," the finance ministry said. This year till July 30, about 92 lakh returns have been electronically filed, which is 46.8% higher than the returns e-filed during the corresponding period last fiscal. Source: TOI

Jul252013 by wealth18.comNo Comments

Income Tax Return (ITR) filing compulsory even for salaried employees earning upto Rs 5 lakhs (AY 2013-2014)

News

Unlike the past two years, salaried persons earning up to Rs 5 lakh annually will have to file income tax returns, Central Board of Direct Taxes (CBDT) said today. For assessment year 2011-12 and 2012-13, CBDT had exempted salaried employees having total income of up to Rs 5 lakh including income from other sources up to Rs 10,000 from the requirement of filing income tax return. CBDT said that in last years exemption was given to reduce the paper filing of returns and their processing through manual entry on system. But now, electronic filing of returns is made more user - friendly & can be processed electronically in speedy manner. So, the exemption provided during the last two years is not being extended for assessment year 2013-14. Also, in May 2013, CBDT made e-filing of returns ...

Jul162013 by wealth18.comNo Comments

Shriram Transport Finance (STFC) NCD Issue July 2013 – Details & Review

Bonds

Shriram Transport Finance Company (STFC) has come out with public issue of secured non convertible debentures (NCDs) of face value of Rs 1,000 each, aggregating to a total of up to Rs 750 crore with yield upto 11.15% About the Company STFC is Flagship Company of "SHRIRAM" group which has significant presence in financial services & non-financial services business. STFC was incorporated in the year 1979 and is registered as a Deposit taking NBFC with Reserve Bank of India under section 45IA of the Reserve Bank of India Act ,1934. Shriram Transport Finance Company's primary focus is on financing pre-owned commercial vehicles. In addition, the company also provides finance for new commercial vehicles, passenger commercial vehicles, multi-utility vehicles, three wheelers and tractors. In ...

Jun12013 by wealth18.comNo Comments

1% TDS deduction on Property over Rs 50 Lakhs – Section 194IA

Taxation

Now, you will have to deduct tax when you make the payment to the seller if the cost of the immovable property exceeds Rs 50 lakh. The Central Board of Direct Taxes has notified the new provision of tax deducted at source, or TDS, on immovable property exceeding Rs 50 Lakhs. What is the New Rule ? A new Section 194IA was introduced in Budget 2013-2014 / Finance Act 2013 which require the purchaser of an immovable property (other than agricultural land) worth over Rs 50 lakh to deduct TDS at the rate of 1% from the amount payable to a resident transferor. From when it is Applicable ? This new Section 194IA is applicable from 01-June-2013 At what rate TDS needs to be deducted ? TDS needs to be deducted @ 1% , but it would go up to as high as 20% if the seller does not disclose his perma...