World Of Finance

        World of Finance by M.Vijaya Sai With the macro environment being tippy these days markets worldwide are behaving very volatile. In this situation how can one position safe and be assured good returns. This can be tackled skilfully through various investment product’s. One of those products is Company Deposits or Company Fixed Deposits. One famous quote tells us -"The reason saving comes before investing is that you need to have seed before you can sow it in anticipation of a harvest." truly one need to save well, as your money should turn out to be a good yielding crop with high return. How can we make it happen? We know banks tend to give lower rate of return on our regular savings account. While the Gold reaching tall peaks making it not affordable for common man. Investing in equity market and mutual funds seems to be very risky because of high volatility. Furthe...

        World of Finance by M.Vijaya Sai According to Union Budget 2010-11, a few changes have been made in Income Tax Saving Schemes structure. Here is a glimpse to new additions in tax saving methods : The relaxation limit under section 80C has been inceased to Rs. 2 lakhs. The presumptive tax limit has also been raised to Rs 60 lacs. Announcement of a deduction of Rs 20000 on investment in infra bonds In India, the middle class feels the heat of Income Tax more than anyone else. However the intensified tax system poses great stress on the earner's thinking to manipulate different ways to save tax. Here is a list of certain steps which can help you save your income and minimize your Income Tax. House Rent Allowance Applicable If A portion of your salary is marked as House Rent Allowance or HRA You are paying rent of your house Conditions The house should not be in your kids, spouses or your own name. Max Deductions ...

What is PPF…..??? Public Provident Fund (PPF) is a long-term, government-backed small savings scheme of the Central government started with the aim of providing old age income security to the workers in the unorganized sector and self-employed individuals. Currently, there are more than 30 lakh PPF account holders in India. An individual can have only one PPF account in India. Also, two adults cannot open a joint PPF account. The aggregate annual contribution towards PPF cannot exceed Rs.70,000 otherwise the excess amount will be returned without any interest. Currently, the interest rate offered through PPF is around 8 per cent, which is compounded annually. Interest is calculated on the lowest balance between the fifth day and last day of the calendar month and is credited to the account on March 31 every year. So to derive the maximum, the deposits should be made between 1st and 5th day of the month. People who are interested in liquidity or small-term gains would not be i...

        World of Finance by M.Vijaya Sai There’s a funny saying about income tax which goes like this “death comes once but income tax comes every year in a person’s life” and someone else has said that death and income taxes are inevitable. All assesses are liable to pay tax and they do a lot of work planning and investing keeping tax in mind. All of them will have read the income tax act passed in the assembly that particular year but there is every chance of them having misunderstood some of the concepts. They will have discussed with some of their friends, colleagues, relatives who would have made them more confused. Today we will be discussing some of common misconceptions and the reality.    Process of Filing Income Tax The process of filing income tax is difficult and cumbersome; most of the assessees (Tax Payers) have this misconception and especially those who have recently started paying income tax and tho...

         World of Finance by M.Vijaya Sai Section 80C, even a layman who doesn’t have thorough knowledge about Income Tax knows about this. Under Section 80C of the Income Tax Act, government gives tax benefits to certain financial products in order to encourage savings. The investments made in these products are eligible for Tax Exemption up to a limit of Rs 1 lakh. If your annual income is more than 500000 and you invest Rs. 1 lakh in this investments you save Rs 33,000 in taxes.   The concern is how many of you know about the investments that come under Section 80C. People are aware only about ULIPs; this scenario is because insurance companies are promoting their products massively to increase the sales. But understand ULIP is not the only product that offers Tax benefit under section 80C. In this article we are introducing all the investments which come under section 80C.   Generally people think about investments o...

        World of Finance by M.Vijaya Sai What is Tax….? It is a monetary, pecuniary or compulsory burden that is levied or put on each and every individual by the government . The payment of tax is inevitable that’s why a funny thing that is said about the tax is that “death comes once, but the payment of tax comes every year”. When the topic of tax comes, being a common man there are two questions that arise in our mind the first one is why the government needs to collect tax and the second one is what does the government do with the amount of tax collected? Well the answer for the first question is that the amount of tax collected is very huge and is the main source of income forthe government. The gross tax receipts for the year 2008-09 is Rs.6, 87,715 Cr whereas according to the budget the estimated amount of tax to be collected in 2009-10 is Rs.6, 41,079 Cr. The answer for the second question is thatthe government invest...

        World of Finance by M.Vijaya Sai Income Tax Act  has categorized all Income Tax Payers (Individuals) into 3 different types:   Male taxpayers    Female taxpayers   Senior citizens   Income tax rates for Male Tax payers Annual Income Income Tax rates for FY 2009-10 Up to 160000 Nil 160000 – 300000 10% 300000 – 500000 20% 500000 and above 30% Now, let us see the method of calculating income tax in detail with few examples:   Example 1:  Mr. Rahul is 35 year old and earning 8 lac annually. Calculation Heads % of Income Tax Tax Amount Tax on Income up to 160000 Nil ...