SEO Simplified By Gabs Gaurs &amp; Geets

ICICI Prudential Life Guard is a term plan with an added feature of premium return. Thus, if the policyholder survives till maturity, all the premiums paid during the term shall be repaid. In the event of the death of the policyholder during the policy term, the insurance cover (sum assured) shall be paid to the nominee.

The feature of extended life cover is impressive. However, the premiums payable are much higher than what are otherwise payable in case of a traditional term plan as the scheme guarantees repayment of same at maturity. Also, the maximum amount of insurance cover that can be purchased is restricted to 10 lakh, which makes it unsuitable for those seeking higher cover.

Premium Payable

ICICI Prudential Life Guard is a term plan that basically provides insurance cover. The scheme does not provide for any maturity gains, but returns the premium paid on maturity. The table beneath illustrates the amount of premiums charged by this scheme per annum for an insurance cover of 10 lakh.

Unique Feature

If the policyholder survives till maturity of the plan, the scheme provides an extended insurance cover for another five years for 50% of amount of sum assured. No premiums are charged for this additional cover to life.

For Existing Customers

Existing Customers should continue to stay invested, as early exit would result in the loss of premiums already paid, not to mention the loss of insurance cover. Exit from the policy after a period of three years will give only a guaranteed surrender value to the policyholder equal to

Total premiums paid X No. of years for which premium is paid

No. of years for which premium is payable Thus, if a 30 yr old male takes 10 lakh policy for 25 years and pays premiums for only four years, the total premiums paid will be 36,188. An early exit will however result in him receiving only 5,790 as return of premiums paid.

For Those Looking to Invest

The extended insurance cover for another 5 years after maturity makes this plan an attractive buy. Investors should however take note of the premiums as they are on the higher end.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver

ICICI Prudential Tax Plan

DSP BlackRock Tax Saver Fund

Birla Sun Life Tax Relief '96

Reliance Tax Saver (ELSS) Fund

IDFC Tax Advantage (ELSS) Fund

SBI Magnum Tax Gain Scheme 1993

Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Interest Rate of small saving schemes is linked to government bonds

Submit filled up application Collection canter near you

Posted: 29 Mar 2012 03:27 AM PDT

Being linked to the government bonds, rates on small saving schemes may fluctuate

Small saving schemes used to provide a cushion when interest rates were around six per cent. These schemes gave extra income of two per cent per annum, with a good eight per cent return on most schemes.

However, these schemes now cease to be lucrative in spite of a raise in most of their returns. Reason: These schemes are now linked to the market. Like a five-year National Savings Certificate (NSC) is linked to the five-year government bond yield, so is the five-year Post Office recurring deposit, term deposit and Post Office Monthly Income Plan. Similarly, a 10-year NSC and Public Provident Fund (PPF) is linked to 10-year government bonds.

The good news is that, presently, these schemes are returning more than what they were. On the other hand, the returns will fluctuate from here on. This is because the 10-year government bonds, for instance, have moved between six and 10 per cent in the past 10 years. So, if this had come into effect some years before, gross returns would have gone as high as 10 per cent and fallen below six per cent.

Given that the Reserve Bank of India (RBI) has kept benchmark rates unchanged, it signals a reversal in the rate cycle. The apex bank is expected to start cutting over the next three to six months. This will translate into lower returns for investors of small saving schemes as well. If this move had come in a year earlier, investors would have benefited immensely.

Senior Citizen Savings Schemes (SCSS), popular with retirees, will also be linked to the 10-year yields, putting your retirement corpus at risk.

Bankers also say yields on government bonds will ease in the coming weeks, as the mid-term policy review mentioned RBI conducting open market operations (OMOs) in case of liquidity strain. As liquidity eases, the yields will fall. The government borrowing programme will also determine the yields, to a large extent.

The returns on these schemes will be announced in the beginning of the year and fixed for that financial year. If the yields are high in the beginning of the year, you benefit. Otherwise, you will be stuck with a lower rate.

Debt schemes where the returns are fixed for the entire tenure. That's why he suggests investors withdraw from small saving schemes to invest in proposed tax-free bonds from the National Highways Authority of India (NHAI) and Power Finance Corporation (PFC), as the returns will be fixed for 10 and 15 years. You can even withdraw from PPF and invest in these bonds as the returns are likely to be decent and fixed for the entire tenure.

The small saving schemes also disappoint when compared on the basis of returns. There are more instruments giving higher returns. For instance, a 10-year fixed deposit with the State Bank of India will fetch you 9.25 per cent annually. The interest income will be added to your income and taxed. The same applies for returns from any of the small saving schemes, barring PPF (interest is tax exempt). Many banks are giving more than 10 per cent. Lakshmi Vilas Bank is offering 10.5 per cent for anywhere between one and two years, Karur Vysya Bank is offering 10 per cent for one to two years.

We does not recommend Post Office schemes at all. Even if the returns are decent, there are too many hassles with these products in terms of servicing. You need to be present in person at the time of investing/redeeming. And, you can redeem the investments only from the branch you started it in. Apart from PPF, none of the other schemes can be routed through a bank. Also, none of these schemes is instrumental in financial planning, except PPF. Therefore, he recommends PPF and fixed maturity plans, where the post-tax returns will be around 8.2 per cent (for over a year).

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver

ICICI Prudential Tax Plan

DSP BlackRock Tax Saver Fund

Birla Sun Life Tax Relief '96

Reliance Tax Saver (ELSS) Fund

IDFC Tax Advantage (ELSS) Fund

SBI Magnum Tax Gain Scheme 1993

Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

Guidelines to Sell Ulips

Posted: 29 Mar 2012 02:42 AM PDT

Here are some guidelines to help you decide what to do with the Ulip policy you already hold

Volatile equity markets have not spared even insurance policyholders, especially the unit-linked insurance policy holders, as most Ulips have the option to invest as much as 90% in equity. If you have chosen to invest in Ulips just for 5 years, or as a short-term trading instrument, you cannot afford redemption. The cost structure of Ulips is so high in the initial years that there is limited scope to a make profit. In fact, you may be even staring at some losses in the initial years. However, this does not mean you should never sell your Ulip holdings. But before pressing the exit button, you should do a thorough evaluation of your policy and its performance to decide whether to stay invested or quit. Here are some pointers.

Don't Exit After 5 Years

You have to pay the premium only for five years is the most commonly used sales pitch and a myth propagated by insurance agents who are out to dispel clients' resistance to purchasing a product with a long-term financial commitment. While the IRDA regulations permit you to withdraw after 5 years, it is often incorrectly used as a USP by agents, who do not explain the negative consequences of such premature withdrawals. Of course, unlike the older regime of a 3-year lock-in, surrender charges are not levied under the new regime but the fund value may still be 'underwater' (i.e. lower than the premium paid.

Invested At The Peak 21,000 Levels

An investor needs to realise that if it is only a timing error, it will get sorted out over time. They need to check the performance of the fund in which they have invested with the benchmarks. If it is better than the benchmark, then it would be a good fund (and Ulip) to retain. If not, you should exit and reinvest in various other investment avenues. You should be aware of the pros and cons of investing in Ulips prior to purchasing them. Ulips are not guaranteed products. Hence the market risk has to be borne by the policy-holder. This is compounded if you opt for a single premium Ulip as it does not offer any scope for rupee-cost averaging, unlike a Ulip where the premium is paid frequently (monthly/quarterly or annually). If you want to indulge in market timing, you may switch to a less equity oriented option if you are apprehensive of the market corrections, and then switch back into the equity option once the correction has played out. Of course, this is easier said than done.

Fully Paid Up A Better Option Than Selling Ulip

Once the initial allocation charges were paid, most Ulips which were sold in the past did not have high allocation charges in the later years. If that be the case, then investors could continue paying premiums. Loss or profit would depend upon how the markets behave.

However, in case allocation charges are high even in later years, then it would make sense to make their Ulips fully paid up and invest an equivalent of the annual Ulip premium in equity mutual funds, without any entry loads as well buy a term insurance policy.

However, if you convert a policy into 'Fully Paid Up' status, the life cover too proportionately reduces. Hence ensure that you have an alternate policy which offers adequate life cover and consider Ulips primarily for investment purposes.
In case of a Fully Paid-Up Policy, you can stop paying premiums. But the policy itself will still be active with the insurance company for the time being. It continues to earn interest and has a certain cash value based on where the funds are being invested. This policy can be in the fully paid up status till maturity. In case of premature withdrawal, you can surrender the policy to receive a cash value of the Paid-Up Policy.

You may exit a Ulip if there is consistent underperformance vis-à-vis its benchmark; there are constant fund manager changes or you wish to consolidate your insurance policies. However, you must weigh the impact cost of such withdrawal vis-a-vis the monetary impact of continuing to pay the premia for the entire tenure of the policy.

The bottom line is Ulips are long-term protection cum investment vehicles.

Investment returns can be volatile in the short-medium term. You should not take a very narrow or tactical view with Ulips and invest/divest on a short-term basis as you may do with a trading portfolio. If the individual is likely to invest in equity/balanced products, then it may make sense to stay invested since the bulk of the upfront costs in the Ulips would have been charged already and from here on, it may be quite beneficial. If the individual wants to exit equity altogether, this was not the right product to start with.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver

ICICI Prudential Tax Plan

DSP BlackRock Tax Saver Fund

Birla Sun Life Tax Relief '96

Reliance Tax Saver (ELSS) Fund

IDFC Tax Advantage (ELSS) Fund

SBI Magnum Tax Gain Scheme 1993

Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Four reasons for active fund managers woeful run

Submit filled up application Collection canter near you

Posted: 29 Mar 2012 01:49 AM PDT

If your investments are being steered by active fund managers, here's a little tip: When you open that statement, you might want to shield your eyes.

That's because fund managers who pick and choose their stocks, rather than passively follow an index, are having a year to forget. Only 27 per cent of large-cap managers are beating their benchmarks year-to-date, according to new research from Bank of America Merril Lynch.

Growth managers, in particular, aren't earning their paycheques, with only 12 per cent outperforming their indices.

Indeed, if anything, active managers seem to be getting worse. Last year, Standard & Poor's Spiva scorecard — which measures active funds against their benchmarks — revealed that 34.3 per cent of large-cap managers beat the S&P 500 for 2010.

Which begs the question: What's going on? It's a very tough environment for active managers right now. There seems to be limited opportunity to find winners." Active-versus-passive investing used to be a lively debate for market wonks. On one side of the argument, index proponents like Vanguard Group founder Jack Bogle say pairing low fees with market-mirroring returns is the most reliable way to build your portfolio. On the other side, there are star managers like Legg Mason's Bill Miller, who famously beat the S&P 500 with his picks for 15 years in a row.

Recently, though, the contest has turned into a bit of a rout -and even Miller is exiting his flagship fund (but remaining chairman), after trailing the index for four of the past five years.

Some reasons for the mismatch are evergreen, like the higher fees that actively managed funds must overcome. Active large-cap funds at present have an average expense ratio of 1.28 per cent, versus 0.68 per cent for similar index funds, according to the Chicago based fund research firm Morningstar.

But the past couple of years have been particularly rough sledding for active managers, and it seems everyone has a different theory as to why. Some of the most oft-cited culprits: High correlation: Historically, when a particular sector is tanking, money managers are able to sidestep the carnage by migrating elsewhere. But when there are no safe havens anymore, where do you go? Because of the extreme volatility in the market right now, correlation is as high as it's ever been. When fears of a European sovereign default sell the market off, it sells off powerfully — and takes every sector and stock with it. Style cheating: As the US economy languished after the financial meltdown, some managers of domestic equity funds began nibbling at international stocks for a little performance boost. But as Europe began to blow up, they started to wish they hadn't.

This year that worked against them, as global stocks underperformed.

Betting wrong on dividend: High-yielding stocks did pretty well in November, generally leading the market, according to Savita Subramanian, head of US equities for Bank of America Merrill Lynch. Too bad active managers weren't on board. "Sectors with the highest dividend yield are most underweight by active managers," she wrote in a recent performance report.

Cash drag: At any given time, most equity fund managers hold some cash to keep their powder dry for future purchases. But with interest rates so low, that cash is basically earning nothing and can be a lead weight during market rallies, says Geoff Friesen, an associate finance professor at the University of Nebraska-Lincoln. If the S&P earns 6.8 per cent but a fund has 10 per cent of its assets in cash and the other 90 per cent in the S&P, the fund will earn 6.12 per cent, substantially lagging the benchmark. So, even if the stock component of a fund exactly matches the S&P 500, the cash component drags down returns during positive-return periods. While active managers are fielding the weaker team right now, keep in mind that not all sectors act alike, notes S&P's Dash. An active and seasoned captain can be an advantage in trickier waters like international smallcap equities and emerging market bonds, where managers tend to beat their benchmarks.

Nor are all fund families alike. While past returns are no guarantee for the future, some firms boast a menu of active funds that have performed impressively in recent years — like Baltimore-based T Rowe Price, which was ranked among the best fund families in the country by Barron's and fund-research firm Lipper, a Thomson Reuters company. In a world where everyone's focused on the next data point, we're focused on what companies are going to look like three years from now. That long term approach is fundamental to our success, because there's less noise and more visibility. On the average, though, realise that expecting your active fund manager to beat the market over the long term — especially during an era of economic Black Swans — is a risky bet. If you want to go active in your quest to beat the market, there's nothing necessarily wrong with that.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver

ICICI Prudential Tax Plan

DSP BlackRock Tax Saver Fund

Birla Sun Life Tax Relief '96

Reliance Tax Saver (ELSS) Fund

IDFC Tax Advantage (ELSS) Fund

SBI Magnum Tax Gain Scheme 1993

Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Banks can't close account without notice

Submit filled up application Collection canter near you

Posted: 29 Mar 2012 01:31 AM PDT

A DELHI consumer forum has ruled that a bank closing its customer's account without serving him notice seeking his various particulars as per the banking sector's know-your-customer (KYC) norms, is liable to be held guilty of rendering deficient service.

Delhi's central district consumer disputes redressal forum, headed by its president BB Chaudhary gave the ruling, while holding Karol Bagh branch of the State Bank of Bikaner and Jaipur guilty of rendering deficient service to one of its customers, whose bank account it had closed without serving a due notice to him, seeking his particulars.

It also asked the bank to pay Rs 15,000 as compensation within 30 days to complainant RN Prabhakar, a lawyer, for causing harassment, pain and mental agony to him.

"We hold that the act of the bank amounts deficiency in service. It led to harassment, pain and mental agony to the complainant," the forum said.

The forum said the bank, itself, did not follow the Reserve Bank of India (RBI) guidelines, published in a news daily, on the KYC by closing the account of the lawyer on its own. Rather, it cleared two cheques of the complainant before closing his account without giving him a notice, it said.

It was not appropriate on its part to close the account or not to honour the cheque of the complainant by taking shelter under the public notice, it said.

Prabhakar, in his complaint, had alleged that the bank dishonoured a cheque in favour of Airtel without any valid reason. He also sought that his complaint be treated as a public interest litigation (PIL).

The forum, however, refused to treat the complaint as a PIL, saying it was governed by the Consumer Protection Act and not by the Civil Procedure Code.

It held that the public notice in a newspaper cannot be treated as a "due notice" to the accountholder.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver

ICICI Prudential Tax Plan

DSP BlackRock Tax Saver Fund

Birla Sun Life Tax Relief '96

Reliance Tax Saver (ELSS) Fund

IDFC Tax Advantage (ELSS) Fund

SBI Magnum Tax Gain Scheme 1993

Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

FD backed credit cards

Posted: 28 Mar 2012 11:43 PM PDT

ICICI Bank, SBI Cards and Axis Bank offer such products AS the credit card is already backed by a security, interest levied on such cards is almost half

HAS a bank rejected your credit card application because of a low credit score?
Or, have you avoided taking a credit card due to high interest rates? Now, you can try out security-backed credit cards or a credit card issued against fixed deposits (FDs).
Options: Credit card companies such as ICICI Bank, SBI Cards and Axis Bank offer these products to its customers.

This scheme was rolled out to bring down high delinquency (non-performing loans) rates. It is a win win situation for both banks as well as the customers.

While banks can ensure low default rates due to collateral of FDs, customers who were not eligible before for a credit card, can now get one.

Under this scheme, the bank will ask credit card applicants to open an FD and it will issue a credit card against the deposit. The minimum deposit amount is generally Rs 20,000.

Conditions: Each bank has different minimum FD maturity tenures. Get in touch with these banks to know more. The credit limit on the card is pegged at 85 per cent of the FD amount.

Credit card holders will not be allowed to break the FD as long as they hold the credit card. In case of a default, the bank will forfeit the FD and recover its dues.

It is a good option because customers can earn interest on deposits and also have a credit card. As the credit card is already backed by security, interest levied on such cards is almost half. SBI Cards is joint venture between State Bank of India (SBI) and GE Capital.

Matter of interest: Annual interest on security-backed credit card is around 18 per cent, while on standard credit cards, it is 42 per cent. Credit cards companies give 40-50 days of free credit to customers.

However, if the customer doesn't pay after that, it starts levying high interest and penalties.

You can also improve your credit rating with these cards. Banks, while issuing security-backed credit cards, do not worry about poor credit score of an applicant. Before issuing any loan or a credit card, banks contact credit rating agencies, such as the Credit Information Bureau of India (Cibil). If an applicant has a low score, his application is rejected. Companies like Cibil keep track of a borrower's credit history and repayment behaviour. This score gives an indication of the creditworthiness of an individual.

Experts say that if you have good score, you can get a better bargain from your bank while applying for a loan. Credit card companies also have different interest slabs for different customers based on their credit history.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver

ICICI Prudential Tax Plan

DSP BlackRock Tax Saver Fund

Birla Sun Life Tax Relief '96

Reliance Tax Saver (ELSS) Fund

IDFC Tax Advantage (ELSS) Fund

SBI Magnum Tax Gain Scheme 1993

Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

How to turn a better tax planner ?

Submit filled up application Collection canter near you

Posted: 28 Mar 2012 10:38 PM PDT

AS the financial year (FY) 2011-12 (April 1, 2011 to March 31, 2012) is nearing an end, it would be best to plan your personal finances to avoid any last minute rush. Some tips for doing this are given below

■ Plan your investments: One must plan investments and spread it across various instruments specified under Chapter VIA, such as Section 80C and Section 80CCF, of the Income Tax Act, 1961 (the Act) so as to avail maximum tax benefit.

The popular options available under Section 80C (maximum deduction available up to Rs 1,00,000 per year) are investments in public provident fund (the limit of which has recently been enhanced to Rs 1,00,000), national savings certificate, life insurance premium and fixed deposits in banks, among others.

It is pertinent to note that not only investment in specified avenues helps in reducing taxes, but specific expenditures, such as repayment of principal on housing loans and tuition fees paid for children, would also qualify for deduction under Section 80C.

Submit investment proofs to employers in time: In case you are a salaried individual, then you should submit the proof of investments/expenses to your employer within the time specified by the employer, so that he takes the relevant available deductions into consideration and compute the taxes on the balance income.

In case you are repaying a home loan, you must collect the certificate of repayment of principal amount and the interest paid during the financial year from the concerned bank/financial institution. You are required to submit the proof of the same to your employer so that the relevant deductions are allowed and taxes are computed accordingly.

If you are claiming deduction under Section 80D for payment of health insurance premium for self and family, then ensure that you submit the receipt to your employer, to avail the allowable deduction of up to Rs 15,000 (additional deduction of Rs 20,000 would be done in case of dependent parents, who are senior citizens).

■ Documentation of all your investment proofs and receipts: Although, there is no longer a requirement to file any supporting document, such as investment proofs along with the return of income, it is advisable to maintain the relevant documentation for the same and keep them in records for future reference. These would also be required, in case your return is picked up for assessment.

■ Maintaining record of the income earned during the year: One should keep a record of their income earned from various sources like bank interest or rental income because they are taxable. Also, if you have sold/transferred any assets, such as house property, shares and mutual funds, then you are required to pay tax on the same, after taking in account the necessary deductions and exemptions available.

■ Payment of advance tax: In case you have any income on which tax has not been deducted at source, then you are required to pay advance tax on such estimated income as per the prescribed timelines.

Advance tax is payable only if the total tax liability after reducing the tax deducted at source is more than Rs 10,000.

It is always advisable to pay advance tax before the due date in order to avoid interest liability, which is payable before filing a tax return.

The next due date for payment of advance tax is March 15, 2012.

These small, yet important, resolutions can go a long way in avoiding the last minute rush of trying to minimise your tax liability and ensuring that all the available exemptions/deductions are claimed in a timely manner.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver

ICICI Prudential Tax Plan

DSP BlackRock Tax Saver Fund

Birla Sun Life Tax Relief '96

Reliance Tax Saver (ELSS) Fund

IDFC Tax Advantage (ELSS) Fund

SBI Magnum Tax Gain Scheme 1993

Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Over 100,000 NSDL demat accounts closed

Submit filled up application Collection canter near you

Posted: 28 Mar 2012 10:19 PM PDT

There has been a sudden and alarming fall in equity demat account holders in India. Around 108,000 demat accounts were closed at the National Securities Depository Ltd (NSDL) in October. After witnessing a steady rise this year, the number of demat account holders has come down by 0.9 per cent in a month NSDL currently has over 11.8 million accounts and is country's top share depository. NSDLs rival, the Central Depository Services, has not reported such a big closure of accounts. CDSL is a distant second to NSDL and holds over 7.8 million demat accounts.

One reason for the closure of demat accounts is the poor market conditions and lack of any initial public offer for the past three months. The benchmark equity indices are trading near their 25 month lows, and volumes too are at multi-year lows.

Sources in the depository business say the closure of demat accounts at NSDL is significant as it could be related to probe in initial public offer (IPO) manipulation being conducted by the Securities and Exchange Board of India (Sebi). The regulator is probing whether there was any manipulation in some recently listed IPOs, which fell sharply on the first trading day and were highly subscribed in poor market conditions.

A senior NSDL official said that closure of demat accounts was routine and refused to link it to any of the IPO scam. In most cases, NSDL by itself does not close demat accounts but asks depository participants (DPs), which deal directly with investors and brokers, to look into the matter. In this case too it is the depository participants who were closing their client accounts. Banks and stock brokers act as DPs.

Sources say that many demat accounts closed could be linked to the IPO scam unearthed in 2006 by Sebi under the chairmanship of M Damodaran. Then, it was found that NSDL had failed to detect a large number of fake demat accounts opened with it to corner retail quota shares during IPOs. Though the accounts were frozen, not all of them were closed. Later, NSDL managed to get a clean chit in the IPO scam, but the matter reached the Supreme Court this year.

The court, while hearing a petition, revoked the clean chit and directed Sebi to implement a order by its committee on NSDL. Sebis two member committee had asked NSDL to investigate and fix responsibility for the lapse during the scam.

During Damodaran's term as Sebi chairman, the regulator had conducted a system audit of NSDL, wherein various irregularities and failures alleged to have been committed by NSDL were observed. As many as 34,924 such accounts were opened with depository participants of NSDL, which were dummy.

Sebi has slapped a penalty of ~5 crore on NSDL for discrepancies related to benami demat accounts used to corner shares in 21 initial public offerings (IPOs) that hit the market during 2003-05. IL&FS Investmart, Gokaldas Exports, Yes Bank, TCS and IDFC were some of the IPOs involved in the scam.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver

ICICI Prudential Tax Plan

DSP BlackRock Tax Saver Fund

Birla Sun Life Tax Relief '96

Reliance Tax Saver (ELSS) Fund

IDFC Tax Advantage (ELSS) Fund

SBI Magnum Tax Gain Scheme 1993

Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

False papers, skipping medical test may lead to hassles in claims

Submit filled up application Collection canter near you

Posted: 28 Mar 2012 09:47 PM PDT

IF YOU are planning to buy a life insurance policy this tax saving season, make sure that you submit all the documents and payments as prescribed by the insurance company.

On several occasions, it has been noted that the insurance adviser, in an attempt to get new business, makes false commitments about documents or medical examination required. All this adds to policyholder's agony and frustration that could further make him jittery about buying any new policy.

Cautious approach: A person planning to buy an insurance policy should communicate clearly with the insurance adviser about all documentation requirements. Also, he should contact the insurance company directly to know if the insurer will be processing the proposal based on those documents or not.

Another issue is the requirement for medical examinations. Policyholders must always discuss their past medical history with the insurance agent in case he had gone through any medical procedure.

An agent's first duty is to identify customer needs by understanding the client's family history, dependants, present earnings and future earnings potential, short as well as long-term liabilities and future aspirations, to name a few, and then, recommend a policy that satisfies his needs. Once the customer agrees to buy a policy, he is then expected to support and handhold the customer in satisfying all formalities in completing policy documentation and facilitate the medical examinations if required.

Once the documents are received, the insurer has up to 15 days for underwriting the application and dispatch the policy bond to the policyholder. However, the insurers generally take fewer than 15 days to complete the process if it is a non-medical case.

In cases where a medical examination is required, the insurer has to schedule a meeting with any registered physician or medical centre close to the policyholder's locality. In addition, it is the agent's responsibility to coordinate between the medical centre and the policyholder. For most insurance companies, the medical examination cost has to be paid by the insurer and should be deducted from the premium, in case the proposal is rejected by the insurance company.

In case of service deficiency, the customer can register a complaint with the insurer through various channels, such as the nearest branch office, call centre or write to the customer support team. In case the customer is not satisfied with the response of the company, the complaint can be escalated with the call centre of the regulator or an ombudsman.

Complaint redressal: A customer may also register a complaint on the Insurance Regulatory and Development Authority (Irda) grievance redressal portal, http://www.igms.irda.gov.in, or, send a written complaint to the regulator. All such complaints have to be resolved within 15 days by the regulator. Any service deficiency reported by the customer against the agent could result in suitable disciplinary action by the insurer, which could even lead to termination of the agent's licence.

The insurance companies should make the customer feel that their insurance proposal is important and should maintain continuous communication with the policyholder.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver

ICICI Prudential Tax Plan

DSP BlackRock Tax Saver Fund

Birla Sun Life Tax Relief '96

Reliance Tax Saver (ELSS) Fund

IDFC Tax Advantage (ELSS) Fund

SBI Magnum Tax Gain Scheme 1993

Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

HDFC Bank levies charges on inactive accounts

Submit filled up application Collection canter near you

Posted: 28 Mar 2012 09:28 PM PDT

IF YOU are an account holder of HDFC Bank, then be prepared to pay Rs 50 per quarter for a non-operational account of over-a-year and Rs 25 for depositing cash of over Rs 1,00,000.

The bank will levy a charge of Rs 50 on inoperative accounts. This charge is applicable across savings and current accounts on a per-quarter basis, HDFC Bank informed its customers.

The order comes into effect from January 1.

Though, there is no cash handling fee for deposits of up to Rs 1,00,000 in a day at a home branch for 'non-managed customers', amounts above this level will attract a charge of of Rs 25 per Rs 50,000 and part thereof for such clients.

Non-managed customers are those clients who do not have a private banking or wealth management account with the bank.

Besides, it said Rs 50 per instance will be levied for any deliverable returned by courier due to negative reasons (no such consignee/consignee shifted and no such address).

The lender will charge Rs 100 each for its photo attestation, signature attestation and address confirmation.

If the average monthly balance (AMB) of saving accounts in urban and metro branches is between Rs 5,000 and Rs 10,000, the bank would charge Rs 250 per month.

If AMB is less than Rs 5,000, then Rs 350 per month would be levied, it said. It is to be noted that all banks, including public sector lenders, levy charges if monthly average balance is less than a stipulated level.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs