Why you shoud opt for health insurance?

BankBazaar.com — Mon, 15 Mar 2010 02:32:16 +0000

The most neglected is health insurance. Most often this tax saving instrument is brushed aside with the logic that after all it’s an expense (no monetary gains) and well we all save for the “rainy day”. So why incur an additional expense? The moot point - Is it truly an additional expense?

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5 things you ought to know about HRA

BankBazaar.com — Mon, 15 Mar 2010 01:50:56 +0000

The place of residence is significant in HRA calculation as for a metro the tax exemption for HRA is 50% of the basic salary while for non-metros it is 40% of the basic salary. This holds true especially when you work at a metro and reside at a non-metro. In this case, your city of residence only will be considered for calculating your HRA.

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PPF as a tax saver and investment option

BankBazaar.com — Mon, 15 Mar 2010 01:40:58 +0000

PPF is a typical savings tool but one has to invest for the long term. This means that there is an asset class mismatch. But on the convenience side, the fund scores pretty high for the flexibility that it offers.

There are additional unique advantages in the form of wealth tax and insolvency benefits from the Public Provident Fund. On the flip side, the long term (minimum 15 years) of the plan is a limitation.

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Planning to revive your insurance policy? Here’s help

BankBazaar.com — Mon, 15 Mar 2010 01:34:34 +0000

In order to prevent the lapsing of policy, it is advisable to keep insurance and investment. It has three-fold advantage. First, if you opt to cancel your policy, you don’t suffer any financial loss. Also it is simpler to track your investment. If you are ever in financial need, you can always redeem these investments and use the money to meet your needs. Alternately, you can just stop your investment plans. It won’t affect your insurance cover. Lastly, pure investment plans are simpler and cheaper.

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Tax changes - 2008-2009 vs 2009-2010

BankBazaar.com — Thu, 11 Mar 2010 02:16:36 +0000

This year there is an increase in the scope of Section 80E. Till 2008-2009, the interest paid on the education loan taken for graduate and post graduate (PG) programs in engineering, medicine and management, or for PG programs in applied pure sciences (including mathematics and statistics) could be deducted from your taxable income. But from 2009-2010, this facility would be available for all types of courses including vocational studies.

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Selling your property? Know your rights

BankBazaar.com — Thu, 11 Mar 2010 02:00:33 +0000

You should be ready to hand over all the paperwork related to the property to the buyer, whenever asked. But you are exempted from this rule under 2 circumstances: either you have clarified in the agreement with the buyer that you’ll retain a portion of the property or you have sold the property to various buyers, in which case, the buyer who has bought the property with the highest value can keep the papers. In the latter case, you can show the documents and handover true copies or extracts according to the demands from other buyers.

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Does a step-up home loan make sense for you?

BankBazaar.com — Thu, 11 Mar 2010 01:58:12 +0000

The step-up scheme can be implemented in different stages. In certain instance there are 2 phases, one lower and other higher. In other cases, it is a gradual system. It can be carried out annually, after 5 years or at any time intervals. Some step-up schemes from certain banks offer fixed interest rate, but these loans are costlier than those with floating rate.

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Selling inherited gold? Pay tax!

BankBazaar.com — Wed, 10 Mar 2010 03:00:09 +0000

To decide whether the gold is long or short term asset, find out how long have held it. If your holding period is over 36 months, it is considered as a long term asset, and accordingly long term capital gains (LTCG) tax rate is charged. If you have held it for less than 36 months, then they are considered as short term capital assets and you end up paying long term capital gains tax.

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Earning a regular salary? Save tax the smart way!

BankBazaar.com — Wed, 10 Mar 2010 02:31:52 +0000

PPF, NSC, Post office accounts, insurance (except ULIPs) and FDs are safer, they offer lower returns and are not very liquid, due to their long lock-in period. On the other hand, ELSS (Equity Linked Savings Scheme) has a short lock-in period but is more risky, while ULIPs (Unit Linked Insurance Plan) carry the risk of ELSS but without the liquidity benefit. So while investing for tax saving purpose, take into account factors like your risk appetite, returns generated by the instrument, liquidity, capital appreciation and safety of capital.

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Some smart ways to save and still have fun!

BankBazaar.com — Wed, 10 Mar 2010 02:30:11 +0000

Whether it’s to indulge your retail therapy fix, or the weekly list of grocery essentials, shopping is something you just can’t get away from, and therefore all the more important to guard against, especially if you’re looking to save.

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