Just A Financial Thought

Applications will be issued from Nov 5 - Nov 20 for investing in bonds backed by purchase of gold by the RBI on behalf of the government. Depending on the demand the Government may decide to close this early. Bond will be issed on Nov 26 2015  Investors can buy a minimum of  2 grams and a maximum at 500 grams per year. The Reserve Bank has fixed the public issue price at Rs 2,684 per gram for the sovereign gold bonds .In case of joint holding, the limit applies to the first applicant A fixed rate of interest of 2.75 per cent per annum (payable every 6 months) on the initial value of investment. The bonds have a maturity period of 8 years, with exit option being offered from the fifth year. Holdings can be redeemed in multiples of one gram. The redemption price will be based on prevailing gold prices at the end of the tenure. In the event that the price of gold has decreased, them an option to extend the tenure will be offered. Gold bonds will be sold thr...

The income tax returns have to filed with the government in a prescribed format . The following allows you to select the appropriate form applicable for you. ITR - 1 (SAHAJ) This form is applicable for mostly salaried class of people. If you are getting salary or pension income                  rent or occupying in one house property                  exempt income (agricultural income upto Rs 5000)                  other income like fd interest (other than lottery/horse race winnings) ITR - 2A In addition to the above, if you are getting                   agricultural income above Rs 5000                   income or loss from more than 1 house property                   lottery/horse race winnings ITR ...

What is PPF? A voluntary savings instrument in India to mobilize small savings in India over a period generating tax free interest returns to the person. Thus this provides a mechanism to self-employed professionals to save for retirement needs. The guarantee by the Central Government also adds to the low risk nature of this fund. Who can Open/ Eligibility? Only a resident individual can open a PPF account .  A minor individual can open with the help of a legal guardian Non-resident Indians are not allowed to open a PPF account. However existing PPF accounts can be continued to be operated if a resident becomes non-resident.( Though such balance cannot be taken out of the country) Restrictions Only one PPF account can be held by any individual . Lock-in period Original tenure of 15 years. This can be extended by 1 or more blocks of 5 years each. Funds cannot be withdrawn during such lock-in period until maturity . However partial withdrawal is allowed...

So the New Finance Bill of 2015 has introduced a 2% TDS on maturity of your life insurance policy. Who is this applicable to Policy holders holding a life insurance policy where the premium paid in a year exceeds 10% of the sum assured if policy issued after 1st April 2012. (20% if policy issued before that date) .Sec 10(10D) of Income Tax Act 1961 Why Many assessees even though liable to pay tax on such proceeds would not disclose such income in their tax returns thus forcing the Income Tax Department to bring in a provision to plug this gap. When applicable from 1st Oct 2014 Who deducts The insurance company Exemptions available If the payout is less Rs 1 lac in aggregate in a year , the insurer will not deduct TDS on that amount, ie you will receive the full proceeds in that year. However you have to show such proceeds in your tax return for the year if premium paid exceeds 10%. Example of exemption If A took a life policy with sum assured of Rs 10,00...

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