Small Savings Small Cut
June 3, 2017
After staying put in the March quarter, the government has finally cut rates on small savings schemes offered by the post office in the April-June 2017 quarter. A rate cut was overdue. G-Sec yields, to which post office schemes rates have been linked , are down sharply over the past year. Even so, the government has been kind. The quantum of the latest rate cut- just 0.1 percentage point accross small savings schemes except post office savings accounts – has been mild. The government going by its formula to fix these rates, had the leeway to wield the knife more forcefully. So, the PPF and NSC will now get 7.9 per cent, while the Sukanya Samriddhi and Senior Citizens Schemes
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EPF to NPS: Should you jump ship?
June 3, 2017
No, as the EPF is the best bet for the safe portion of your retirement kitty If you’re a salaried employee, how would you like to switch from your staid old EPF (Employees Provident Fund) to the market-linked NPS (National Pension System)? Though the government has mooted it, there are still legal hurdles to cross before this option becomes a reality. But if given the choice to jump ship from EPF to NPS, should you do it? Here are the pros and cons. Return and Risk If your retirement goal is to accumulate maximum wealth, never mind the risks. NPS is more likely to deliver it than EPF. This is because while EPF is restricted by mandate to stick to
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All you wanted to know about advance tax
April 29, 2016
Think of advance tax as your EMI to the taxman In the home stretch to each financial year, advance tax collections become a much-watched metric for a whole bunch of market players. Banks watch the number to predict liquidity requirements, analysts monitor it to forecast quarterly results from companies, and economists scan it to map the economy. What is it? Advance tax simply means paying tax as and when the money is earned, rather than wait for the end of the fiscal year. The Income Tax Act requires taxpayers to shell out advance tax, in every case where the tax liability (after TDS cuts) during a fiscal year is Rs.10,000 or more. So, based on the estimated income for the
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A guide to NRI home loans
April 29, 2016
NRIs need to meet minimum age and work criteria to take a loan One of the most sought-after investments for Non-Resident Indians (NRIs) is buying property back home. At a time when the Indian rupee is weakening against the US dollar, taking a home loan in India could be a good option for the NRIs rather than using up all the money earned in the foreign currency. Are NRIs allowed to take a home loan in India? Yes, they have. “NRI Home Loans” are offered both by banks and Non-Banking Financial Companies (NBFCs). Here we take a look at what is required to avail this loan and how it differs from a normal loan taken by a resident Indian. Eligibility
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EPF Vs NPS
March 26, 2016
Employees’ provident fund Tax exemption on employee’s contribution under Section 80C. No tax on employer’s contribution. Interest earned is not taxed. Withdrawal is not taxed. National Pension System Tax exemption on contributions under Section 80CCD(1). Tax deduction on employers contribution under Section 80CCD(2). Extra tax deduction of up to Rs.50,000 on voluntary contribution under Section 80CCD(18). Options for a subscriber at the time of retirement at 60 years; a) Must use 40 per cent of the corpus to buy an annuity b) Can use the remaining 60 per cent of the corpus to buy an annuity income from a life-insurance company c) Can withdraw 40 percent of the 60 per cent corpus tax-free, and withdraw 20 per cent and pay
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