Finance, Taxation, Income tax, Investment
The Deadline for filing Income Tax Return is 31-Jul-2011
Why to file Income Tax Return
Earlier when I was less aware about taxes, during start of my career, I used to wonder – I pay taxes which is deducted from my salary from my company. I submit all the document related to tax saving investments. Then, Why do I need to file “Income Tax Return”.
Posted in Taxation.
– February 10, 2011
It is a document given by a company (who have a TIN No.) to its employees, which contain details of salary earned by the employee every month. It contains all the components of the salary (some are taxable and some are exempted from income tax) including tax saving investment and deduction such as PF of the employee.
All the employees of the company who are on roll of the company will get this Form No. 16 by end Apr every year. It actually states net taxable income and how much tax company is paying to government on employee’s behalf (TDS). The employee may proceed to file the Income Tax Return using all the information on Form No. 16.
Posted in Finance.
– May 21, 2011
I was watching this news show on Star News tonight where they had Baba Ramdev with them in studio. The host asked all sorts of things from Babaji and he really answered very faithfully from his heart – I believe. But, one thing which really caught my attention is – his suggestion that government should revoke and stop printing higher denomination of current – 1000, 500, and even 100… and its not even his own and fresh view on this matter – as per his speech even PM Mr. Manmohan Singh had expressed this idea quit long back. From economy point of view, this idea does holds solid ground.
Doing so, will curb corruption in a significant way. But, how?
“Given the current inflation, when everything is so expensive you don’t even get enough vegetables in rupees 500, where the economy go when we don’t have notes of 100, 500, 100″ Asked the interviewer to Baba Ramdev.
Though Baba Ramdev replied “We could use notes of 50, 20, 10s… What I was wondering, even in city like Bangalore where I live, If I go to vegetable market with 500 note I won’t be able to buy anything, sometimes – I must have 10 and 20 rupee notes. Some time even note of rupee 100 is also problem. So its really possible to survive without higher denomination of currency.
It really makes sense if we stop printing notes of 100, 500 and 1000. If we have all the transactions in electronic or cheque way – how one would hide the black money? This is definitely help curbing corruption.
Posted in Social Economics.
– April 28, 2011
Introduced in 2010 budget for Financial Year 2020-11, Long Term Infrastructure (Infra) Bonds provide a tool of investment which gives us additional tax deduction on upto Rs. 20,000/- over an above Rs. 1 Lac decution available under under sections 80C, 80CCC and 80CCD. Continue Reading…
Posted in Investment, Personal Finance.
– February 10, 2011
An Index Fund is a bunch of key stocks listed on a particular stock exchange which captures or replicate the movement of the overall market as a whole rather than a particular stock. Usually it is available in form of a Mutual Fund or a exchange traded fund.
Most of the times Index Funds in form of Mutual Funds are a bunch of stock in a particular segment of the market viz Infrastructure, health, Blue chips etc.
There are a number of Index Funds which follow the growth or movement of the over-all market. Index Fund is considered to be one of the oldest, safest and low cost investment method in the securities market. An Index Fund can be bought through a Fund Manager – Kotak Security, HDFC Mutual Fund, LIC, ICICI Prudential, Reliance Mutual Fund, and many more.
A person investing in Mutual Fund obtains equitable rights to the assets of the mutual fund along with the units. To Understand the functioning of Mutual Funds or an Index Fund we must understand few key terms:
NAV: Net Asset Value is what gives us the value for the each unit of the fund on a day-to-day basis. It actually defines the worth of the MF (each unit). It would be easily calculated -
{Market Value of all Investments in the Fund – (Liabilities + Expenses) } / Outstanding No. of Units in the Fund
So in plain world, NAV on a particular day, gives us the What value of a unit of Mutual Fund we will get if we liquidate the fund on that day.
Income comes from the Mutual Funds in form of Dividend which is exempted from income tax. Since the Index Funds are managed by expert fund managers the risk profile is low though being related to securities market the risk is always there and varies with different funds.
If we see the growth chart of Sensex in last 15 years its commendable and investing the the Index Fund seems to be a wise decision for a small investor.
Though Index Fund is a kind of Mutual Fund but both are not same. An index fund is quit a passive investment where the fund manager mere try to replicate the index which it is following and hence there is very less buying and selling. While in Mutual Fund fund manager keep buying selling different securities keeping short/medium/long term objectives. Cost of managing an index fund is quite lower than mutual fund due to its passive nature.
Image Source: Economic Times
Posted in Investment, Personal Finance.
– October 2, 2010
