Tuesday, October 4, 2011

Simple yet Best Financial Plan for an Individual.

Everybody either buys too many financial products like LIC or ULIP or NFO and things keeps getting added based on how many agents have pushed the products and after a while its too complicated and dont know whats happening or an Individual just dont save anything or totally allergic to any financial planning or most people even want to start investing but procrastinate on things or they put all there money in Stock market and burn huge whole in there pocket.

so I have come up with the most basic but yet VERY VERY EFFECTIVE FINANCIAL PLAN with least monitoring required.

1) Buy a good Health Insurance for the Family (Family Floater plan cheaper)
2) Buy simple pure TERM Insurance Plan for Head of family
3) Start an SIP in good BALANCED FUND (balanced Fund does automatic Portfolio Rebalancing)

Note : you can do an Dividend payout to a Gold Fund to get gold exposure.

Each and every Individual should do this three things religiously at the least.

Wednesday, September 21, 2011

Tax Deductions on Rental Income of property

If you have a real estate property which is given on Leave and License and earning rental income then you can claim Tax deductions as follows

1) Rental Income are allowed Standard deduction of 30% or Actual expenses on maintaining the property which ever is higher.
2) you can deduct Property Tax from the same
3) Water charges are also deductible
4) Loan Interest is also deductible if any taken for buying this property can be claimed on actuals.

Example: Property given on leave and license fetches Anual rental income of Rs 1,20,000 (Rent of Rs 10,000 per month)   with water charges of Rs 1,000 per annum and Property Tax of Rs 6,000 per annum.

Taxable Income comes out to be
Taxable Income = 1, 20,000 - (0.3)1,20,000 - 1000 - 6000 = 77,000

so instead of paying tax on Rs 1,20,000 you have to pay tax only on Rs 77,000

Friday, August 12, 2011

ATM Transaction charges on use of Third party ATM

ATM transactions use have been on rise of late and it is an easier and convenient way for masses to access cash.

Third Party ATM (use of ATM other than your own bank) use is on rise and more convenient but now there is some changes to that.
1) you will be allowed only 5 free transaction in a month anything above will be chargeable.
2) Even balance enquiry or any other transaction including the cash withdrawal will be counted, earlier only CASH WITHDRAWAL were counted in your free quota.
3) CASH WITHDRAWAL limit is still Rs. 10,000 /- on Third Party ATM. 
4) At a time only one transaction will be done. you will have to enter the PIN for each transaction seperately.
5) If any complaint regarding ATM is not resolved within 30 days then there is a penalty on the bank of Rs. 100 per day of delay.
6) you have to make any complaints within 7 days of the transaction.

Thursday, July 7, 2011

Salaried income of less then 5 lakh do not need to file IT returns with some conditions

Individual whose main income source is from salary with taxable income of less than Rs 5 lakh will not have to file income-tax returns in the current assessment year. However there are few conditions where exemption is not allowed, few of them are as follows.

1)Salary income of less than Rs 5 lakh in FY 2010-11,is exempted from filing IT return provided the salary is from single employer. meaning if someone has changed the job then he will have to file IT return.

2) Interest income of more then Rs 10,000 in savings deposit will have to file returns.
If interest income is less Rs 10,000 then employee will have to declare his permanent account number to his employer and obtain certificate of tax deduction in Form No 16.

3) Individuals having income from other sources besides salary or having refund claims will have to file IT returns.

Wednesday, May 4, 2011

Savings a/c interest rate increased to 4% with immediate effect from 3/05/2011

Good Newssssssssssss for everybody having a savings account in a bank will fetch them more money.

RBI have increased the interest rates for all the banks to be increased to 4% from earlier 3.5% with immediate effect to be effective from 3/05/2011.

This means that if you have a Rs 1,00,000 lakh in savings account for a year it would fetch you Rs 4,000  instead of Rs 3,500 earlier.
This is a good new for almost all sets of investor specially the layman who do not aggressively look out for superior returns.

This will also make the difference between liquid funds and savings account deposit less attractive.

Friday, April 22, 2011

UTI Mutual Fund declares BONUS in three schemes;UTI Childrens Career Balanced plan,UTI Unit linked Insurance plan, UTI Retirement Benefit Pension Fund

UTI Mutual Fund has declared a 1:10 bonus in three of its schemes:
1. UTI Children's Career Balanced Plan
2. UTI Unit Linked Insurance Plan
3. UTI Retirement Benefit Pension Fund.

The quantum of bonus will be in the ratio of 1:10 (1 unit for every 10 units held). The record date of bonus is 25/04/2011.

UTI-ULIP is an open-end tax saving cum insurance scheme with a corpus of around Rs 2,367 crore. The scheme provides multiple benefits to its investors like life insurance cover upto Rs 15,00,000 and accident cover up to Rs 50,000 also it provides for automatic asset allocation.

Monday, February 28, 2011

Income Tax limits for Individuals for AY 2011 -2012


  1. upto 1,80,000 - Nil
  2. above 1,80,000 till 5,00,000 - 10%
  3. above 5,00,000 till 8,00,000 - 20%
  4. above 8,00,00 and above     - 30%

  1. upto 1,90,000 - Nil
  2. above 1,90,000 till 5,00,000 - 10%
  3. above 5,00,000 till 8,00,000 - 20%
  4. above 8,00,00 and above     - 30%

Senior Citizen(above 60 years)
  1. upto 2,50,000 - Nil
  2. above 2,50,000 till 5,00,000 - 10%
  3. above 5,00,000 till 8,00,000 - 20%
  4. above 8,00,00 and above     - 30%
 * For senior citizens, the qualifying age is reduced to 60 years. 

Super Senior Citizen(above 80 years)

  1. upto 5,00,000 - Nil
  2. above 5,00,000 till 8,00,000 - 20%
  3. above 8,00,00 and above     - 30%
* For Citizens over 80 years the exemption limit is raised to Rs 5 lakh.

Thursday, February 10, 2011

Documents Required for Investing in Mutual Funds

Documents to be Submitted

1) Completed Application form of the respective Fund
2) Cheque in favour of the scheme you want to invest in
3) Copy of Pan card (self Attested)
4) ECS Auto debit form in case of SIP
5) KYC (Know your customer)Form, Compulsory for all Investors
     a) Photograph of the Investor
     b) Copy of Address Proof self attested (Passport,Ration Card,Electricity Bill etc)