When are property gifts taxed?
January 12, 2016
Nature of the gift, its value and the relationship between donor and donee are determinants It is common in India to gift immovable property within the family. While the tax law takes cognisance of this and does not provide for taxation of such gifts to specified relatives, there are situations when a gift of immovable property is taxed. Here’s the low-down on when a gift is exempt from tax and when it is not. What’s tax-free? Normally, the giver is not liable to tax on any gifts made by him. But gifts received are taxable in the hands of the receiver under the head ‘Income from Other Sources’ under the Income Tax Act, 1961. However, the Act provides for specific
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All you wanted to know about Green Bonds
January 12, 2016
The Securities Exchange Board of India (SEBI) has just mooted new guidelines for Green Bonds. We have already had a few Green Bond issues by Indian firms such as Yes Bank and Exim Bank. These bonds are common in the West where there are full fledged funds that invest only in ‘green’ projects. What is it? Green bonds are debt instruments that raise money to fund clean energy projects. Companies that raise money through these bonds have to invest it only in areas that are environment-friendly such as renewable energy, waste management, clean transport or sustainable land use. Though the green bond market has been in existence globally since 2007, in India it has just made a beginning. In February
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When disaster strikes, cash is really king
January 12, 2016
The Chennai floods offer lessons to help plan your personal finances When natural disasters strike, most of us imagine that these are one-off events that can happen only to others. But the torrential rains in Chennai, which saw people across economic strata suffer massive losses, call for a rethink in the way many of us plan our finances. Here are the financial planning lessons from some real-life experiences in Chennai (names have been changed). Protect before investing As flood waters entered his ground floor flat in the early hours of December 3, Paul Samuel, a resident of Velachery, had just enough time to collect his mobile phone, a few clothes and essential food items, as he and his family sought
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Ensure loans don’t put you in a spot!
January 12, 2016
Instant loans are so easy that you may end up borrowing more than you need Today, taking a loan has become as easy as shopping. In the days to come, all you may have to do is walk to the nearest ATM, check your loan offer, and get instant cash. While such instant loans, or ‘spot loans’, may appear an innovative banking facility, are they really a smart idea for borrowers? Let’s see. Just like instant coffee and instant food, instant loans are the next big thing in banking. While the concept of spot approvals is not new, and spot loans have been offered under festive schemes for personal loans, car loans and home loans, these new ‘loans on the
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Sebi orders Greentouch Projects, directors to refund investor money
January 12, 2016
Moreover, they have been ordered to refund the money along with 15 per cent annual interest Markets regulator Sebi has ordered Greentouch Projects and its four directors to refund the investors’ money it had illegally raised by issuing securities. These five entities have also been barred from the securities market with immediate effect and the ban would be in place till the expiry of four years from the date of completion of refunds to the investors. Moreover, they have been ordered to refund the money along with 15 per cent annual interest. The regulator found that Greentouch Projects had raised Rs 56 crore through non-convertible redeemable debentures to 20,549 persons without complying with public issued norms. However, the company claimed
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