Prajna Capital

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• Debt MF G- secs Investment
• The New India Assurance
• Income Tax Rebate Benefit under Section 87A

Debt MF G- secs Investment Posted: 17 Oct 2015 06:22 AM PDT   Debt MFs exposure in G-secs surges on rate cut hopes India's debt mutual fund managers' fancy with investment in government securities (G- secs) is continuing. In the past one year, fund managers have doubled their exposure to G- secs through gilt funds. Their overall exposure in the asset category is 14 per cent, a level not seen earlier for years. About ₹ 1.26 lakh crore of debt assets have found their way into G- secs. A year before, the amount pumped into this security was ₹ 55,000 crore, show statistics from the Securities and Exchange of India. A global drop in oil and commodity prices has raised expectation that interest rates and, thus, G- sec yields could be headed downwards for the long term. Recent inaction from the US Federal Reserve has further strengthened fund mangers expectations on rate cuts. Pankaj Murarka, head of equities at Axis Mutual Fund, says, " Over the next three quarters, we see a cut of 75 basis points in interest rates." Two months earlier, the fixed income market was expecting volatility because of the Greek situation and a potential rate increase by the US Federal Reserve. However, recent developments have settled these concerns. According to S Naren, chief investment officer of ICICI Prudential MF, " We believe that towards the end of the year, there is a likelihood of an interest rate cut." The allocation towards gilts has been increased to benefit from the rate easing cycle of the Reserve Bank. Lower headline inflation and benign commodity prices create a case for further rate easing. Most fund managers have been opting for longer duration debt paper, as these are likely to benefit the most from areversal in the monetary policy stance. According to them, fixed income products with a three to five years duration will benefit the most. Nearly 95 per cent or ₹ 1.2 lakh crore of the allocation in government paper is in securities with maturity of a year or above. "We believe that duration funds might prove an attractive investment over the next one year. The shorter term rates have already fallen and this could be an opportune time to invest in funds with a three- year and above maturity profile. Also, the yield curve is flat at the longer end of the curve; hence, the opportunity lies there Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1.ICICI Prudential Tax Plan 2.Reliance Tax Saver (ELSS) Fund 3.HDFC TaxSaver 4.DSP BlackRock Tax Saver Fund 5.Religare Tax Plan 6.Franklin India TaxShield 7.Canara Robeco Equity Tax Saver 8.IDFC Tax Advantage (ELSS) Fund 9.Axis Tax Saver Fund 10.BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

The New India Assurance Posted: 17 Oct 2015 05:53 AM PDT   The New India Assurance Co. Ltd The New India Assurance Co. Ltd. is one of the oldest general insurance companies and has general insurance operations in 20 countries. For the sixth consecutive year the Company has been rated "A-" (Excellent) by M/s. A.M. Best Europe Ltd. Different types of products offered by New India Assurance are Personal Insurance, Commercial Insurance, Industrial Insurance, Liability Insurance and Social Insurance. Products offered by The New India Assurance Co. Ltd A) Health Insurance: Health Insurance generally covers the hospitalization expenses arising due to illness or accident. New India Assurance Co. Ltd has Mediclaim policy for individual and family floater. Some of the key features of the Mediclaim policy are Entry age 18 years to 60 years, Pre-existing disease get covered after 4 years, discount in premium for family cover and Cumulative Bonus. Like the Medicare Policy, New India Assurance has Senior Citizen Mediclaim policy, which is specifically designed for senior citizens. Entry age for Senior Citizen policy is 60 years to 80 years and it can be renewed up to 90 years. Other products in personal insurance category are personal accident cover which covers the policyholder against the risk of accident, overseas Mediclaim policy covers the medical expenses incurred outside India and motor insurance policy available for private and commercial vehicles. B) Commercial Insurance: Commercial Insurance specially designed for commercial products. New India Assurance commercial products includes - Jewelers Block policy which is specially designed for Jewelers' and diamontaires. Shopkeeper's Policy specially designed for small shopkeepers and it has total 11 sections like Building & content policy, Burglary & Housebreaking, Money Insurance, Pedal cycles, Plate Glass, Neon Sign/Glow Sign, Baggage, Personal Accident, Fidelity Guarantee, Public Liability, Loss of Profit. Marine Cargo covers the Goods, freight & other interest against loss or damage to goods while being transported by rail, road, sea or air. Neon Sign Insurance covers the loss or damage to the neon sign installation. Multi Peril Policy for LPG Dealers policy specially designed to meet the requirements of LPG Dealers. Fidelity Insurance Policy covers the employer if any direct financial loss happens because of employee dishonesty. C) Industrial Insurance: Industrial Insurance specially designed to meet the Industrial insurance requirements. Products offered under Industrial insurance are: Fire Policy covering the property against damage to the property due to fire. Burglary Policy designed to cover business premises like godown, factory, office etc. There are three types of policies available - Full Value Insurance, Fire loss insurance and Stock declaration policies. Machinery breakdown policy covers financial loss incurred by the insured due to loss or damage to machinery as a result of accidental electrical and mechanical breakdown. Electronics equipment policy specially designed to cover accidental loss or damage to electronic equipment. Contractor's All Risk Policy is specially designed to give financial protection to the Civil Engineering Contractors in the event of an accident to the civil engineering works under construction. Contractor Plant & Machinery Policy covers sudden, accidental, external damage to the insured machinery due to any cause other than those specifically excluded in the policy. D) Liability Insurance: Liability Insurance covers the risk of any legally liability payable to third party by the insured. Products come Liability Insurance are: Public Liability covers the amount which the insured becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury. Product Liability policy covers all sums which the insured becomes legally liable to pay as damages due to any accident, badly injury etc. Professional indemnity policy covers liability falling on them as a result of errors and omissions committed by them. Employers Liability policy covers liability of an employer for the death of or bodily injuries sustained by the workmen arising out of and in course of employment. Carrier Liability policy Pay all sums for which the insured shall become legally liable as compensation for physical loss or destruction of or damage to goods while in transit including during loading or unloading. E) Social Insurance: Social Insurance policy is designed to cover the large number of society instead of individual or a small group of members. Products under this category are: Universal Health Insurance Scheme for BPL family policy specially designed for BPL families and covers the hospitalization expenses. Jan Arogya Bima Policy is designed to provide cheap medical insurance to poorer sections of the society. The age limit is 5 to 70 years.. Raj Rajeshwari Mahila Kalyan Yojana policy is a personal accident insurance scheme which provides economic security to women irrespective of their income, occupation or vocation. Bhagyashree Child Welfare policy is intended to provide insurance cover to one girl child in a family who loses either the father or the mother due to accidental death. Janata Personal Accident Insurance Policy pays specified benefits if the insurance sustains bodily injury resulting solely and directly from accident caused by outward violent and visible means. This policy provides compensation in the event of death or permanent disability. Student Safety Insurance is available to schools, colleges or other educational institutions. The policy is issued in the name of the Institution. The claim amount is payable to the parent/guardian as recorded in the school register. All students are to be covered. Rural insurance special design for farmers. It includes animal insurance and agriculture product insurance. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. IDFC Tax Advantage (ELSS) Fund 4. ICICI Prudential Long Term Equity Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. DSP BlackRock Tax Saver Fund 8. Birla Sun Life Tax Relief 96 9. Reliance Tax Saver (ELSS) Fund 10. HDFC TaxSaver Invest Rs 1,50,000 and Save Tax under Section 80C. Get Good Returns by Investing in ELSS Mutual Funds Online Invest in Tax Saver Mutual Funds Online Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

Income Tax Rebate Benefit under Section 87A Posted: 17 Oct 2015 04:56 AM PDT   Tax Rebate aka Tax Credit under section 87A Since there are no proposed changes to tax rebate available under section 87A in the budget 2015, it will continue giving benefit to the medium class taxpayers post budget. Thus, tax rebate under section 87A is available for Assessment Year 20161-7 i.e. Financial Year 2015-16 also. Background of Section 87A While tabling Union Budget 2013, Finance Minister had introduced a new section 87A to help individual taxpayers in lowering the tax outflow from their pocket. However, the tax rebate benefit had not been made available to all taxpayers but restricted to only Individual Taxpayers and that too for only Indian citizens irrespective of being male or female. Further, the tax rebate could be cherished only by individual taxpayers having the Net Total Income below Rs.5 lakhs. FAQs on Tax Rebate available u/s 87A Q1. What is the maximum amount of tax rebate? A1. The amount of tax rebate u/s 87A is restricted to maximum of Rs.2,000. In case the computed tax payable is less than Rs.2,000, say Rs.1,500 the tax rebate shall be limited to that lower amount i.e. Rs.1,500 in our case. Q2. Which income category taxpayer can enjoy tax rebate? A2. Only Individual Assesses earning net income up to Rs.5 lakhs are eligible to enjoy tax rebate u/s 87A. Q3. What does total income means? A3. Total Income construes the Gross taxable Income less any tax deductions u/s 80C to 80U. Suppose your yearly pay comes to Rs.6,00,000 and you claim Rs.1,50,000 u/s 80C. The total net income in your case comes to Rs.4,50,000 which makes you eligible to claim tax rebate maximum of Rs.2,000. Q4. Whether section 87A is available for all assesses? A4. Benefit under section 87A is available only to the individual assesse that too only Indian Citizens. This means all the other assesses like HUF, AOP, BOI, Company, Trust, LLP, Partnership Firms etc. including individual NRIs are also not eligible to claim tax rebate under section 87A. Further, Individual assesses includes both male and female assesse aged below or above 60 years but not assesse aged above 80 years because the basic exemption limit for super senior citizens (above 80 years above) is Rs.5 lakhs which is the upper limit of claiming tax rebate. Q5. Does this increase the basic exemption limit by Rs.20,000? A5. No, Instead of affecting the prescribed tax slabs directly, section 87A lowers the tax liability, giving indirect benefit to the assesse procuring net income less than Rs.5 lakhs, of additional exemption income up to Rs.20,000. Q6. If the tax payable is only Rs.1,300 than will I be eligible to claim tax refund Rs.700 as tax rebate remains unused? A6. No, there will be no such tax-refunds. As stated above the tax rebate is only limited to the total tax payable subject to maximum of Rs.2,000. So if the total tax payable comes to Rs.1,300 than the tax rebate would be  restricted Rs.1,300 with no tax refund of unused amount. Computation of Tax Liability and Claiming of Tax Rebate The tax rebate u/s 87A is to be deducted from the total tax payable by the assesse. Assesse is first required to summate all incomes i.e. salary, house income, capital gains, business or profession income and income from other sources and then deduct the eligible amount u/s 80C to 80U and under section 24(b) (Home Loan Interest) to come up with the net taxable income. If the above net taxable income happens to be less than Rs.5 lakhs than the tax rebate of Rs.2,000 comes in the picture and should be deducted from the calculated total income tax payable, as state below. Where to claim tax rebate while calculating income tax payable? Remarks Assesses having gross total income above basic exemption limit are required to file Income Return even if the income tax payable becomes NIL after claiming tax rebate of Rs.2,000 u/s 87A. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. IDFC Tax Advantage (ELSS) Fund 4. ICICI Prudential Long Term Equity Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. DSP BlackRock Tax Saver Fund 8. Birla Sun Life Tax Relief 96 9. Reliance Tax Saver (ELSS) Fund 10. HDFC TaxSaver Invest Rs 1,50,000 and Save Tax under Section 80C. Get Good Returns by Investing in ELSS Mutual Funds Online Invest in Tax Saver Mutual Funds Online Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

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