Prajna Capital |
- REC Infrastructure Bond Application Form
- New Tax Free Bonds Comming Up
- investing InTax free Infra bonds? Know what are the Risks involved
- How to apply to NHAI Bonds?
- NHAI Tax Free Bond Closes on 11 Jan 2012
- What is an assured return Mutual Fund Scheme ?
- Onle Last Opportunity to get interest rate at 9% pa on infra bonds with REC Infra Bonds
- IDBI Federal Childsurance Dreambuilder Insurance Plan
- Limit your Investments to Rs 20,000 in Infra Bonds
| REC Infrastructure Bond Application Form Posted: 03 Jan 2012 03:03 AM PST
Download REC Infrastructure Bond Application Form Current open Long Term Infra Bond Application form
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| Posted: 03 Jan 2012 12:35 AM PST Below are some of the Trx Free Bonds that are lines up
How to apply to PFC Bonds? Apply for PFC Tax Free Bonds forms below Download PFC TAX Free Bond Application Forms Submit the filled up form to Collection canter near you
You can download the NHAI Tax Free Bonds forms below Download NHAI Tax Free bond Application Forms Submit the filled up form to Collection canter near you
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Application form for Tax Saving Long Term Infrastructure Bond
Current open Long Term Infra Bond Application form
Submit filled up application Collection canter near you
--------------------------------------------- Invest Tax Saving Mutual Funds Online
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| investing InTax free Infra bonds? Know what are the Risks involved Posted: 02 Jan 2012 10:36 PM PST Companies are offering as much as 13% interest for NCD issues Tax-free bonds are best suited for those with an annual income of over Rs 8,00,000, and fall under the 30 per cent tax slab WHEN the equity market looks like a haunted house with the kind of bloodbath seen and bank deposit rates expected to fall in a few months from now, debt instruments appear attractive with the kind of interest rate promised and the tax benefits that some offer. But, debt instruments too, come with their inherent disadvantages that investors must be aware of.
For those in the 30 per cent tax bracket and have already exhausted the limit of Rs 1,00,000 under Section 80C, it makes sense to invest Rs 20,000 in these bonds because it would result in savings of Rs 6,000. For those in the 10 per cent or 20 per cent tax slab, it would help save only Rs 2,000-Rs 4,000 through such investments. Investment analysts also recommend that investors should break up their investments between debt and equity instruments. Assuming that people split their total investment in equity-based instruments and debt-based instruments in the ratio 70:30, it would be wise only to invest only the debt portion of their planned investment in infrastructure bonds and not the equity portion. Longer lock-in period: Unlike bank deposits, which have smaller tenures, or equity instruments, where one can buy and sell as and when one wants, debt instruments come with a longer lock-in period of a minimum of three years and maximum of seven years.
How to apply to PFC Bonds? Apply for PFC Tax Free Bonds forms below Download PFC TAX Free Bond Application Forms Submit the filled up form to Collection canter near you
You can download the NHAI Tax Free Bonds forms below Download NHAI Tax Free bond Application Forms Submit the filled up form to Collection canter near you
---------------------------------------------
Application form for Applying for Tax Saving Long Term Infrastructure Bond
Current open Long Term Infra Bond Application form
Submit filled up application Collection canter near you
--------------------------------------------- Invest Tax Saving Mutual Funds Online
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Mutual Fund Applications
Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications  |
| Posted: 02 Jan 2012 10:25 PM PST How to apply to NHAI Bonds? You can download NHAI Bond Application form below Submit the filled up form to Collection canter near you
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Application form for Applying for Tax Saving Long Term Infrastructure Bond
Current open Long Term Infra Bond Application form
Submit filled up application Collection canter near you
--------------------------------------------- Buy Tax Saving Mutual Funds Online by selecting the Mutual Fund Schemes
Download Tax Saving Mutual Fund Applications / Forms from all AMCs: Download Mutual Fund Applications
Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications  |
| NHAI Tax Free Bond Closes on 11 Jan 2012 Posted: 02 Jan 2012 07:26 PM PST How to apply to NHAI Bonds? Download NHAI Tax Free Bond Application form below Download NHAI Tax Free Bond Application Forms Submit the filled up form to Collection canter near you
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Application form for Applying for Tax Saving Long Term Infrastructure Bond
Current open Long Term Infra Bond Application form
Submit filled up application Collection canter near you
--------------------------------------------- Apply Tax Saving Mutual Funds Online
Tax Saving Mutual Fund Application Forms from all AMCs Download Mutual Fund Applications
Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications  |
| What is an assured return Mutual Fund Scheme ? Posted: 02 Jan 2012 06:55 PM PST Assured return schemes are those schemes that assure a specific return to the unit holders irrespective of performance of the scheme. |
| Onle Last Opportunity to get interest rate at 9% pa on infra bonds with REC Infra Bonds Posted: 02 Jan 2012 08:55 AM PST The year is coming to an end and its time to plan and invest for saving your income tax. Apart from your regular tax saving instruments eligible for deductions of up to Rs 1 lakh, there are long term infrastructure bonds in the market. These infrastructure bonds are debt instruments wherein an investment up to Rs 20,000 is eligible for individual income tax benefits under section 80CCF. This additional Rs. 20,000 deduction is over and above the normal limit of Rs 1 lakh investments under ELSS, PF, insurance etc. Hence, an investment of Rs 20,000 will mean tax exemptions of Rs. 6,180 or Rs. 4,120 or Rs 2,060, depending on your income tax slab of 30.90%, 20.60% or 10.30% respectively. While everyone is expecting there will be subsequent issuances in January to March period, it is unlikely that those issues will offer 9% interest rate. All the current trend lines shows a downward movement in the 10 year G Sec. As per regulations, the maximum interest rate that can be offered on these tax-saving infrastructure bonds is the annualized yield on Government Securities as on the last working day of the immediately preceding month of issue. The general market perception is that interest rates have peaked out as evidenced by the recent pause in interest rate hike by RBI. In line with these sentiments, the yields on Government Securities have been on a downturn in the recent past. Currently the 10 year G sec is trading at around 8.35% (8.50% in annualized terms) – 50 bps lower than the October closing which was 8.88% (9.07% in annualized terms).This is a significant movement from the investor's perspective. Going by this trend, any infrastructure bond issue in January-March period is likely to come at a lower coupon rate, as compared to the current issues. Hence this is your last opportunity to lock in an attractive interest rate of 9% p.a. in these infrastructure bonds. ---------------------------------------------
Application form for Applying for Tax Saving Long Term Infrastructure Bond
Current open Long Term Infra Bond Application form
Submit filled up application Collection canter near you
--------------------------------------------- Buy Tax Saving Mutual Funds Online by selecting the Mutual Fund Schemes
Download Tax Saving Mutual Fund Applications / Forms from all AMCs: Download Mutual Fund Applications Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications  |
| IDBI Federal Childsurance Dreambuilder Insurance Plan Posted: 02 Jan 2012 08:04 AM PST IDBI Federal Life Insurance launched its premier child plan, IDBI Federal Childsurance Dreambuilder Insurance Plan, ideal for parents of children aged one month to 17 years.
You can download the forms below Submit the filled up form to Collection canter near you
---------------------------------------------
Application form for Applying for Tax Saving Long Term Infrastructure Bond
Current open Long Term Infra Bond Application form
Submit filled up application Collection canter near you
--------------------------------------------- Buy Tax Saving Mutual Funds Online by selecting the Mutual Fund Schemes
Download Tax Saving Mutual Fund Applications / Forms from all AMCs: Download Mutual Fund Applications
Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications  |
| Limit your Investments to Rs 20,000 in Infra Bonds Posted: 02 Jan 2012 07:22 AM PST Every taxpayer, regardless of income level or tax bracket would do well to invest in the special infrastructure related bonds that can be availed under Section 80CCF. It offers a deduction over and above the ~1 lakh limit available under Section 80C deduction. The finance minister (FM) had introduced a deduction of ~ 20,000 for investment under the section, in his budget speech of 2010. Issuers such as IDFC, IFCI, REC and L&T have since issued such bonds. Currently, the REC Long Term Infrastructure Bonds has opened since 19 December and is due to close on the 10 February 2012. Investors have two options to invest in these bonds - one could either choose bonds with a 10 year maturity or with a 15 year maturity. For the 10 year maturity, the interest rate on offer is 8.95 per cent per annum (p.a) whereas it is 9.15 per cent p.a. for the series having a 15 year maturity. Similarly the minimum lock in period is 5 years and 7 years respectively for each series. In other words, though the term of the bonds is longer, there is an option to exit after five years and seven years respectively. After the lock in, the investor may exit either through the secondary market or through a buyback facility provided by the issuer. One may choose either the regular interest or the cumulative option. Though one may invest an additional amount, the tax deduction would be applicable only to the extent of ~ 20,000. To be listed on the Bombay Stock Exchange (BSE) or National Stock Exchange (NSE) or both, the minimum application amount is fixed at ~ 5,000. Extremely relevant in the case of these bonds are the provisions of the Direct Tax Code (DTC). The revised discussion paper on the DTC released by the Central Board of Direct Taxes (CBDT) specifically provides that any investments made, before the date of commencement of the DTC, in instruments which enjoy exempt-exempt exempt (EEE) method of taxation under the current law, would continue to be eligible for EEE method of tax treatment for the full duration of the financial instrument. In other words, the exempt exempt-taxed (EET) regime of taxation would be applicable only prospectively. What this means is that since these 80CCF bonds are being issued before the DTC has been made operational, even if the maturity proceeds are received during the DTC regime, the same would continue to remain tax-free. This has enormous implications for investors in terms of the effective return on the bonds. For example, though the nominal return for bonds is 8.95 per cent / 9.15 per cent p.a., the real effective rate is much higher. In case of individuals who fall in the 30.9 per cent tax bracket, the effective post-tax return for the 10 year bond is as high as 15.51 per cent p.a The corresponding rate for the 15 year bond works out to 13.38 per cent p.a. This is primarily because of the tax deduction. Remember that the initial investment saves you tax. And since a penny saved is a penny earned, the saving in tax payable works akin to having invested that much lesser in the first place. For someone in the 30.9 per cent tax bracket, the tax outgo will be lower by ~. 6,180 (~. 20,000 x30.9 per cent). This jacks up the effective return. The accompanying table illustrates the effective returns per annum for different tax slabs. However, a note of caution. In the past, for earlier bond issues of similar type, we have come across advertisements and promotions that declare higher returns than those arrived at using proper mathematical calculations. This is patently misleading. The rate of return is as mentioned in the article and that too this is the IRR that is something that emerges on account of the upfront tax deduction on invested capital. Without this deduction, the yield will be the same as the coupon rate that is 8.95 per cent or 9.15 per cent p.a. (as the case may be) before tax. In other words, for any investment over and above ~ 20,000 the investor stands to earn the coupon rate only - a bank deposit currently would yield a higher rate! However, to the extent of ~ 20,000, it is almost like saving tax and getting paid for it, regardless of which tax bracket the investor belongs to (obviously the higher the better). So go for it by all means. Though there could be another issue before the end of the fiscal, its better not to risk waiting till the last minute. Interest rates in all probability have peaked and would be on a decline in the future. For example, the earlier Section 80CCF bond issue from L&T that just closed on 24 December, offered a marginally higher rate of 9 per cent p.a. for a ten year maturity. So one can never say, for the next issue, the interest rate could be even lower than what is being offered currently. Another notable point is that in all probability, this year is the limited window for these bonds. The DTC (as announced) has no room for Section 80CCF and consequently, this deduction may not be available next year. At a time when there is a dearth of good fixed income avenues to invest in, these bonds with their high effective rate could prove to be extremely useful for the fixed income allocation in your portfolio. Moreover, as explained above, so long as the initial investment has been made before the advent of DTC, the maturity amount will continue to be tax-free even in the DTC regime. So do avail of this tax saving opportunity as long as it is made available. Investors have two options to invest in infrastructure bonds —one could either choose bonds with a 10-yearmaturity or with a 15-year maturity Anything more will only earn the coupon rate with yields lower than those of bank deposits Tax Bracket 10 year bonds 15 year bonds ---------------------------------------------
Application form for Applying for Tax Saving Long Term Infrastructure Bond
Current open Long Term Infra Bond Application form
Submit filled up application Collection canter near you
--------------------------------------------- Buy Tax Saving Mutual Funds Online by selecting the Mutual Fund Schemes
Download Tax Saving Mutual Fund Applications / Forms from all AMCs: Download Mutual Fund Applications
Mutual Fund Application Forms Download Any Applications Buy Mutual Funds Online Invest Online Infrastructure Bond Application Forms Download Applications  |
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