All loans given after 01 April 2010 will be calculated as Lending rate =Base rate + X. The variable X will be based on parameters fixed by the banks which could include Operating costs, duration of loan, risks involved etc. This would also include charges relating to specific borrowers.
Many of us are under the false belief that credit cards are a form of extra money! We need to understand that it is still going to be shelled out from your next month’s pay cheque. If you think you can get away with paying only minimum amount due, don’t forget that your interest… Read More »
In SIP, if the investor wants to invest Rs.30, 000 per annum it would be done over a 12 month period of Rs. 2500 every month! SIP gives you the advantage from rupee cost averaging and saves you from the hassles of timing the market. You contribute a fixed amount every month and when the… Read More »
Morarji Desai holds the record for presenting the highest number of budgets – 10. of these 8 were annual ones and 2 were interim ones. He also had the honour of presenting the budgets in 1964 and 1968 on 29th February, which happened to be his birthday. He had 2 stints, one as a finance minister… Read More »
The increased spending from the Government has increased the deficit in the Government budget to a very high level. At the GDP level it is a comfortable slightly over 4%. But on an actual budget level, the deficit is at over 40% of the income (14 lakh crores expenses on an income of 10 lakh… Read More »
Do you benefit from reduced mortality charges if you buy a life insurance at a young age? The answer is yes based on the simple logic that higher the age higher is the mortality charges. For example, a 25 year old will obviously have a higher life expectancy than a 55 year old and hence… Read More »
The 40% scheme allows for purchase of equity, preference shares and convertible debentures not exceeding 51% of the face value of each issue. Repatriation of up to 40% of the new issue is allowed. Under this scheme, NRIs can invest in new projects or in expansion and diversification projects of existing companies.
Tax treatment is where the PPF scores very high. The PPF comes under the Exempt- Exempt- Exempt category. This means that the amount invested gets tax benefits, the interest is not taxed and so is the final maturity amount. The investment gets benefits under Section 80C of the IT Act. The investment however is limited… Read More »
Investing directly in art has its own drawbacks. For one, these artworks need to be protected against theft and damage. Second, you need to have large sums of money to buy these works. Third, they occupy a lot of space. So for those looking to invest in art but have money and space constraints, there… Read More »
Real estate attracts capital gains tax. The advantage is that we can use indexation benefits to our advantage. The indexation index is announced every year by the Income tax department. This is a number which links the inflation to property values. By using indexation, we can estimate the true appreciation of the real estate after… Read More »