BEAWARE & THINK Before You Accept An OPEN OFFER Put Forth By The Company...!

Situation:   Imaging a situation that you are holding a 1000 shares of a company at a prices of INR 500 per share. This makes your holdings in that stock of INR 5,00,000/-. Also, Sensex is Trading at around 20,000 levels.   All the things seem in you favour and you get a good news that the same company in which you have invested your INR 5,00,000/-, has declared an open offer of a buy back. Your happiness knows no bound, since...

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(Important) I-T Returns Might Ask You To Disclose All Assets

Finance Ministry's consistent efforts to counter tax evasion practises in India might lead you to disclose all your assets and liabilities in I-T returns disclosures. This might be made mandatory for individuals and HUF's (Hindu Undivided Families).   So, you might have to fill up a new I-T return form that would ask you to disclose all your assets and liabilities. The year that went by saw disclosure of assets and liabilities being...

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Bank Loans - No Interest Rate Reduction In Near Future.

Irrespective of seeing a repo rate cut, we may not see reduction in the consumer loan rates; since, banks are still paying higher to depositors. Although, banking fraternity is satisfied the way cuts in repo rates are being done, but banks would not be able to cut lending rates till CRR (Cash Reserve Ratio) rate also cut. Cash Reserve Ratio is the rate at which RBI lends to banks.   Why Lending Rates Will Not...

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BeAware of [1st June 2013] : Dividend Distribution Tax on Debt Mutual Funds hiked to 25%, will become Applicable.

DDT on debt fund investments for retail investors has been increased to 25% from 12.5% The dividend distribution tax (DDT) on debt fund investments for retail investors has been hiked to 25% from 12.5% (plus surcharge and cess).  DDT is the tax that debt mutual funds (MFs) pay on the dividend income distributed to retail investors. Although dividends from mutual funds are tax-free in the hands of the investor, your debt fund deducts...

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Reduce Tax Outgo & Also Increase returns by upto 2.5% On Debt Funds

In the month of march, we see investors parking their surplus funds in fixed maturity plans and scores of other debt funds, to take advantage of double indexation benefit. But, the series of policy rate cuts by reserve bank of India and increased the expectation of capital appreciation on these investments.   Advantage of double indexation can be had by investing in March of year 1 (FY 2012-13) and then selling in April of year 3 (FY...

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RBI is responsible for the development of the Government Securities market. Although, debt market in India is not matured; but RBI is taking steps in the good direction to address key concerns.   What Are Inflation Indexed Bonds:   In the developed debt markets, such as, United Kingdom, USA, New Zealand, Canada, Sweden, and South Africa the Inflation Indexed Bonds issued by the Government are one of the popular debt instruments. These Governments undertake issuance of the bonds at a regular interval with an aim to:   (a)...

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