Wednesday 8 May 2013

Aadhaar: Ready Reckoner On How To Get Your Card





The queue of people waiting to lay their hands on the Aadhaar Card is getting longer. No one wants to get stuck due to not having appropriate documents or some unforeseen errors. To simplify, here’s a ready reckoner on how to get the card. What to do?

What to do?


LPG Subsidy Payout Will Be Directly Deposited Into Bank Accounts From October, 2013





It’s time to rush, if you are still not enrolled for Aadhaar Card. Else you will lose Rs. 4783 per year. Banks have already initiated the process of linking account with Aadhaar number for cash transfer of LPG and other subsidies.

It may make a difference of Rs. 4783/- per year approximately (Equal to subsidy amount). So do not linger on and get enrolled for Aadhaar ASAP as it’ll take approx 2-3 months to get your Aadhaar Card issued.


Friday 15 March 2013

Rajiv Gandhi Equity Scheme- Your Double Fayda





Scheme in a Glance

RGESS is a new tax saving scheme introduced to invest only in selected Equity Stocks, Mutual Funds and ETF’s. The scheme is designed exclusively for the first time retail individual investors.
  

Reason to pay attention

  • Tax benefit- Investments up to Rs 50,000 in scheme selected stocks are eligible for tax benefit under section 80 CCG.

  • High returns- The stock market has given considerable returns over the year. For example, in the last 10 years, from December 2002 to December 2012, Nifty has increased over 4.5 times.


  • Stable- Scheme makes you invest only in top notch companies of their respective sectors which minimizes the risk of fraud & volatility related to penny stocks.



Can You Apply? 

  •  Yes, if your total annual income is less than Rs. 12 Lakh.
  • Yes, if you have not made any transactions in equity or derivatives before November 23,2012.


Interested….How to Apply? 

  • Need to open Demat Account through a Depository Participant.
  • If you already have a Demat account where you haven’t traded, then get that account designated as RGESS account. 


Conditions Apply 

  • The investment made under RGESS is locked-in for a total period of three years.However only the first year is a fixed lock-in. In the subsequent  two years, the investment is subject to a flexible lock-in. During the flexible lock-in period the investor has freedom to book profit or alter the securities in her/his portfolio provided the value of securities in the Demat account is maintained equal to the amount declared as investment under RGESS in the first year. 
  • You can make investment only in scheme eligible securities. Click here for updated Eligible List of Securities.



Fayda Recommendation

Faydabook always emphasizes on long term savings. Any scheme that provides opportunity to make you investment in top notch companies of their respective sector is surely in Investor’s benefit. Just have a look on table given below: 


Scrip NameClosing Rate as on 1st March 2003 (INR)Closing Rate as on 1st March 2013 (INR)Return (x  Times)
HCL TECHNOLOGIES LTD. 170.95 722.2 4.22
ICICI BANK LTD. 149.8 1,056.35 7.05
HERO MOTOCORP LTD. 225.1 1,646.05 7.31
BHARTI AIRTEL LTD. 27 310.65 11.51
Axis Bank 44.3 1,361.20 30.73

More FAQ’s



How do I invest in eligible securities of RGESS?

  • Open a designated RGESS demat account with any of the Depository Participant.
  • Open a trading account with any of SEBI registered Broker.
  • To invest in Mutual Fund, provide designated RGESS Demat Account details to get credit of Mutual Fund Units
  • For investing in any IPO/NFO of the eligible securities, provide your Demat Account number for receiving credit of the eligible securities into the demat account. 




Can I designate or open more than one demat account for RGESS?
No. You can have only one demat account across depositories for RGESS.


Can I use an existing demat account for RGESS? 
Yes. You should submit a declaration in ‘Form A’ duly signed by the Account holder(s) for designating the Demat account for RGESS.


I have invested in Equity Mutual Funds/ ETFs but not in stocks or derivatives. Do I qualify for RGESS?
Yes, any prior investments in Mutual Funds and/or ETF’s does not make an investor ineligible for the Scheme.



I possess some physical shares. Am I eligible under RGESS?
Yes, You will be considered as a new retail investor; but you need to make fresh investments to avail of the benefits under RGESS. 


I had equity holdings earlier but do not have any holding in my Demat account. Am I eligible under RGESS?
No. Tax benefit under RGESS is currently available to “new retail investors” who have not made any transactions in the equity segment or the derivative segment till designating such account as RGESS. 


How do I avail Tax Benefit under RGESS?
The “new retail investor certificate” will be issued to you by the concerned DP once you open the designated RGESS Demat account. You are required to indicate these details in the Income Tax Returns filed by you, to avail of the tax benefit. 



Is there any lock-in for RGESS investments?
Yes, there is a lock-in period of 3 years for investments made under RGESS.
First year is Fixed lock in period where you are not permitted to sell / pledge / hypothecate your securities. Subsequent two years will be Flexible lock-in period and In this period you are permitted to trade in eligible securities. 



Is tax deduction under RGESS over and above limit of Rs.1,00,000 currently available under Section 80C of Income Tax Act? 

Yes. You can avail Rs.1, 00,000 under Section 80C of Income Tax Act and Rs.25,000 for maximum investment of Rs.50,000 under 80CCG. 


Courtesy

http://www.nseindia.com
http://www.bseindia.com





Thursday 20 December 2012

Latest EPFO Circular- Big Reduction In Your Take Home Salary?




Few days back a circular issued by Employee Provident Fund Organization (EPFO) asked employers to deduct PF from gross salary instead of basic salary

However, after the immense protest of various labor unions, government agreed to review it. Meanwhile we all can breathe easy.


How does it affect your take-home salary? 


Let’s try to understand the impact of this EPFO circular on your take-home salary with a salary break up example:


Salary Components (Per Month)

Amount (In Rs.)

Basic Salary

12,000

House Rent Allowance

9000

Conveyance Allowance

5500

Dearness Allowance

5500

Overtime Allowance

6000

Medical Reimbursements

7500

Entertainment Allowance

7500

Gross Salary

53,000


Provident fund contribution has two sides- the employer’s contribution and employee’s contribution. This is usually 12 per cent of your basic salary. These contributions are directly deposited to your PF Account and paid to employees when he retires or resigns.


For the above example, as of now Rs. 1440 (12% of 12,000/-) is being deducted from your salary as PF contribution and you are drawing Rs. 51,560 (53,000-1440) as take home salary.


But, if the government allows aforesaid EPFO circular to deduct PF on Gross Salary instead of on Basic Salary, Rs. 6360/- will be deducted from your gross salary and you will be taking Rs. 46,640/-(53,000-6360) as take home salary.


Now you will have Rs. 4920/- less to spend. But do not worry, as this will be deposited into your PF account and will give you a good lump sum amount at the time of your retirement


But till the time decision is pending on circular; hold your horses. We’ll keep you posted.



Related Blogs


a) Can your Ex-Employer withhold your PF?
b) EPF Online Portal- Easy access to your EPF Challan Receipt and PF Balance
c) Difference between EPF & PPF