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Mar262013 by wealth18.comNo Comments

SP Tulsian picks 5 midcap ideas for 2013

Stocks

On CNBC-TV18's Investor camp, SP Tulsian of sptulsian.com picked five stocks from the midcap space which should be on investor's radar in 2013. The carnage seen in midcap stocks in the last couple of months has scared investors. Yes Bank , Zee Entertainment , Apollo Hospital , Tata Global and MCX are five midcap stocks which one can consider for 2013 or March 2014, till elections are being announced. These stocks are likely to get migrated to the largecap category in next 5-15 years. Yes Bank - Yes Bank is the fourth largest private sector bank. There is confidence with respect to their corporate governance. The bank is likely to see earnings per share (EPS) of Rs 35-36 for FY13. They are consistently posting growth of 18-20 percent in topline. Zee Entertainment - Zee Entertainme...

Mar252013 by wealth18.comNo Comments

Interest Rate cut on small savings scheme – PPF, NSC, PO MIS interest rates revised

News

Government has cut interest rates on small savings scheme marginally by 0.10% for 2013-2014. The revised interest rates will be applicable with effect from April 1, 2013. The decision is in line with the recommendations of Shyamala Gopinath Committee, which had suggested that returns should be in sync with market rates determined by the returns offered by other securities. 1) The interest rate on Public Provident Fund (PPF) has been reduced from 8.8% to 8.7%. 2) The interest rate on National savings certificates (NSC) having maturity of 5 and 10 years has been reduced to 8.5% and 8.8% respectively, down 0.10% each. 3) The interest rate on Senior citizens savings scheme (SCSS) has been reduced to 9.2%, down from 9.3%. 4) The interest rate on Monthly income schemes (MIS) of 5 year maturit...

Mar62013 by wealth18.comNo Comments

E-filing of Income tax return mandatory if income exceeds Rs 5 lakhs

News

The government has now made electronic filing of returns mandatory for taxpayers with a taxable income above Rs 5 lakh. Taxpayers with annual income of over 5 lakh will now have to file their returns in electronic form online. Last year government has made the e-filing of returns compulsory for taxpayers with a taxable income above Rs 10 lakh. DON't PANIC Electronic e-filing of returns is easy. For filing the return online, having Digital Signature is NOT Compulsory. Returns can be filed with or without digital signature. In case the returns are filed with digital signature, no further action is required. In case returns are filed without using a digital signature, tax payer needs to send ITR-V (Acknowledgement) to the Income Tax department. IMPORTANT Note - Total Income is NOT equal...

Feb282013 by wealth18.comNo Comments

Offer for Sale (OFS) – things you should know – process explained

Bonds

In recent news, you must have heard about government companies like NTPC, Oil India, NMDC etc raising money via Offer for Sale (OFS). In this post, I have tried to explain the details regarding OFS, its process mechanism, how it is different from traditional IPO / FPO route and whether it is beneficial to retail investors. What is OFS? OFS stands for Offer for Sale & it is similar to FPO (Follow-on Public offer). It provides an exchange based bidding platform to promoters to sell/dilute their holdings in listed companies in a transparent manner. The Securities and Exchange Board of India (SEBI) by a circular CIR/MRD/DP/18/2012 dated 18 July 2012, has permitted the Stock Exchanges to provide a separate window, i.e. apart from the existing trading system for the normal market segment, t...

Feb282013 by wealth18.comNo Comments

Highlights of Indian Union Budget 2013-2014 (Quick Summary )

News

Highlights of Union Budget 2013 – 2014 Union Finance Minister P. Chidambaram presented Budget 2013-14 in the Lok Sabha today on 28-Feb. He said that India will become USD 5 trillion economy, and among top five in the world by 2025. I have quickly summarised the major highlights of this budget on one page for your quick read. Major Highlights of this Budget are : Fiscal deficit seen at 5.2 point of GDP in 2012/13 Fiscal deficit seen at 4.8 point of GDP in 2013/14 No Change in Income Tax Slabs Tax credit of Rs. 2,000 for income upto Rs. 5 lakh 10 % surcharge on persons with taxable income of over Rs 1 crore Direct Taxes Code (DTC) bill to be introduced in current Parliament session Income limit for the tax-saving Rajiv Gandhi Equity Savings Scheme (RGESS) is raised t...

Feb252013 by wealth18.comNo Comments

Soon, you may have Reliance Bank, L&T Bank, Birla Bank

News

Soon you may have Reliance Bank, L&T Bank, LIC Bank, Birla Bank. After almost ten years, RBI is set to issue fresh banking licenses. Last licenses were issued to Kotak Mahindra Bank & Yes Bank in 2003-2004. RBI has now issued final guidelines for new bank licenses which will allow corporate & business groups with sound credentials to enter into banking business. Corporate houses like Anil Dhirubhai Ambani Group, Larsen & Toubro, Tatas, Mahindra and Mahindra, Life Insurance Corporation, Aditya Birla Group and NBFCs Shriram Transport, Religare, SREI, Reliance capital have shown interest to enter the banking business. Although the document does not mention how many licences will be issued, it is likely 4-5 new banking licences will be issued. A. The key features of RBI guid...

Feb212013 by wealth18.comNo Comments

PFC Tax free Bonds 2013- Tranche II – Details & Review

Bonds

In this week, there is wave of seconf tranche of Tax free bonds. PFC, HUDCO, REC, IRFC are launching second round (tranche) of tax free bonds, Power Finance Corporation (PFC) has come out with Tranche II of the tax free bonds after having raised Rs 700 crore in Tranche I in Dec 2012. About the Company PFC is engaged in financing and promotion of power generation, transmission and distribution including renewable energy projects throughout the country. State electricity boards are the primary borrowers. A lot has been talked about the bad health of the SEBs. However, PFC being a government owned organisation, investors may not be too concerned about the financial health of the company even if the default from the SEBs continues. PFC posted a net profit of Rs 1,117 crore for the third quart...

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...