Loans | Insurance | Investments | Personal Finance | Real Estate

Now more expensive Home and car loans

2011-07-27T01:19:00.000-07:00

The catalyst of all this is the Reserve Bank of India's decision to raise key policy rates by 50 basis points. This is its 11th successive rate hike in 15 months.

Home loan buyers have already seen interest rates rise by 1.5-2 percentage points within a year from 9.5% to around 11.5%. If the rate is increased further to 12%, the EMI on a 20-year loan will rise from Rs 934 (at 9.5%) to Rs 1,101 per lakh. On a Rs 50 lakh loan, the monthly instalments will increase by Rs 8,465 from Rs 46,585 to Rs 55,050. This is equivalent to a staggering 18% increase.

Salary and interest income up to Rs 5 lakh, No tax return Now

2011-06-12T21:37:00.000-07:00

New Delhi, Jun 6 (PTI) In India, as many as 85 lakh salaried tax payers whose taxable income, including salary and interest income, is up to Rs 5 lakh, are not required to file income-tax return from now onwards.

"No income-tax returns is required for salaried persons whose annual annual taxable income including salary and interest is up to Rs 5 lakh. We would shortly notify this," a Central Board of Direct Taxes official said.

However, he said this would not cover income from other sources like house property, capital gains and gains from profession and business.

The scheme would be applicable from assessment year 2011-12 onwards. This means that the salaried persons eligible under the scheme would not have to file returns for the financial year 2010-11 in 2011-12 (assessment year).

Under the scheme, those salaried persons who want to claim tax refund, would have to file income tax return.

As per the Memorandum to the Finance Bill 2011, the government will be issuing a notification exempting ''classes of persons'' from the requirement of furnishing income tax returns.

Under the scheme, the salaried person wants exemption from filing IT return, has to disclose about the incomes like dividend and interest to his employer for tax deduction.

In the scenario, the Form 16 issued to salaried employees will be treated as Income Tax Return. At present, it is obligatory for all salaried persons to file income tax return under the Income Tax Act, 1961.

The idea behind the move is that in cases where there are no other sources of income, filing of a return is a duplication of existing information.

TCS Becomes India's third most valuable company

2011-06-08T05:11:00.000-07:00

Tata Consultancy Services topples ONGC to become India's third most valuable company with its market capitalisation soaring to over Rs 2.31 lakh crore. ONGC dropped to the fourth position with a market capitalisation of Rs 2,30,220 crore.

Reliance Industries and Coal India with M-cap of Rs 3.10 lakh crore and Rs 2.57 lakh crore, respectively, remained the top two most valued companies, according to the data available with BSE.

NRI Investment Options

2011-06-03T01:31:00.000-07:00

NRI understands the lay of the land, and at the back of his mind, the desire to own property back home, if he needs to retrace his steps to his homeland, remains strong. An investment in land results in pure appreciation, but along with that come the risks of encroachment,

Medical tourism a good option for NRIs to save costs. Haryana sets up cell for foreign investment, NRIs.

Greater economic opportunity in the home countries drew these immigrants back with 60% of those polled saying it was India's thriving economy that lured them back to start new ventures.

Over half of the returnees have set up IT based start-ups with nearly 31% of these companies situated in Bangalore.

Options available for NRIs:

As per the Government of India, NRIs are given the following facilities as far as investment is concerned.

1. Bank accounts in India
2. Investment in securities and debts
3. Investment in immovable properties such as real estate

Rich Indians Buying house in America & London

2011-05-20T01:33:00.000-07:00

Wealthy Indians are buying the properties for second or third homes, who now account for 7.3 per cent of all sales in 5 million pounds-plus residential property market in London. The average property in this segment is a four-bedroom house, with a room for domestic help, used as a second home by rich Indians or their children studying in the city.

The temptation to buy a house in the US at bargain prices has lured a lot of foreign buyers world over. New York, Los Angeles (California) and Miami (Florida) the prime area for the buyers.

Cleaner environment, lush green open spaces, neatly maintained, full-service apartment buildings, orderly streets and highway traffic. For families with school kids, education until high school is free and compulsory, and enrollment in a neighbourhood school is for the asking. Property prices in places such as Florida, California and Texas are down as much as 30-50%.

Non - resident Indians (NRI's) are investing in (SMEs) in India

2011-05-03T05:39:00.000-07:00

Cash-rich Indian SME-owners investing in global assets, especially mineral resources such as coal and gold mines. Non- resident Indians are investing in well-established small and medium enterprises (SMEs) in India. These Indian investments are significant in size, some as much as USD 100 million per commitment, though they are often overshadowed by the multi-billion dollar international deals being done by Indian multi-national corporations,

Surrender passport to get new Indian visa

2011-05-03T05:27:00.000-07:00

Passport surrender rule for new visa: Indian government requesting and holding passports for over 40 days in order to issue an OCI-visa.

Taxable Property

2011-03-20T23:43:00.000-07:00

> You are required to pay tax on rental income from the second house even if it is lying vacant.

> If a person owns more than one house and it is vacant, its value is added while calculating the owner's wealth.

> A 1% wealth tax is payable on the amount exceeding Rs 30 lakh.

> Commercial property is not included while calculating the wealth of a person.

> The interest paid on a loan taken to purchase commercial property is also eligible for tax deduction.

> Commercial space usually fetches a higher rent than residential property. It is also possible to take a loan against this rental income.

> The rental income from commercial property is eligible for 30% standard deduction as in the case of residential property.

Direct Tax Code (DTC) Progress

2011-01-10T02:13:00.000-08:00

Allaying apprehensions about the proposed Direct Tax Code (DTC), Union finance minister Pranab Mukherjee on Saturday assured an audience of nearly 1,300 overseas Indians that the regulations were still being formulated and there was no firm decision yet. Clarifying that no decision has been taken in terms of DTC as the bill is currently being scrutinized by a parliamentary standing committee, Mukherjee said it is a wrong perception that an NRI becomes an Indian resident for the purpose of taxation if he stays in India for 60 days in a financial year.

NRIs to Get 10 percent of industrial plots Reserved in Haryana, Great Investment option

2011-01-10T02:03:00.000-08:00

There's good news for NRIs wanting to invest in Haryana. The state has decided to reserve up to 10 percent of industrial plots or sheds for NRIs and persons of Indian origin (PIO).

Industrial units with 33 percent or more foreign direct investment (FDI) can also avail the benefit of reservation of industrial plots, a spokesperson of the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) said here Monday.

"In case of NRI plots, the entire amount towards the price of the plot would have to be remitted through the Non-resident External Rupee (NRE) Account of the applicant or in remittances from abroad or foreign exchange," he said.

Haryana has crafted success in industrial investment in the last three to four decades. The state's industrial base in Gurgaon, Manesar, Faridabad, Panipat, Kundli and other places is well-known. Some big names like Maruti-Suzuki, Hero Honda and several others have invested in the state.

In case of FDI projects, at least 33 percent of the project cost should come from the FDI route.

However, the 10 percent limit would not preclude allotment of plots in the FDI category as part of the general scheme of allotment, he added.

The spokesperson said preferential allotment of up to two percent of industrial plots or sheds in each industrial estate had been prescribed by the government people with disabilities.

He stated that while allotting plots, preference would be accorded to prestigious projects involving capital investment of Rs.10 crore, Rs.20 crore and Rs.30 crore and above.

Ex-servicemen, women entrepreneurs, unemployed engineering graduates, polytechnic, ITI trained candidates and new entrepreneurs who display exceptional entrepreneurial skills would also be given preference in allotment, he added.

NRIs and applicants of other categories will apply to the HSIIDC for allotment of industrial plots.

Haryana has planned industrial model townships (IMT) and industrial estates in several places across the state, especially in the national capital region (NCR) of New Delhi.

The new industrial estates are located in Panchkula, Bawal, Bahadurgarh, Rai and Kundli while IMTs are coming up at Manesar and Rohtak.

1 Tonne of Gold Sold last Week Gold traders stock-up after Gold prices Fall

2011-01-10T02:00:00.000-08:00

India's gold buying continued on Monday afternoon after prices fell 1.8 percent in the previous week, as traders sought to stock in anticipation of the upcoming harvest festival and on wedding demand, dealers said.

"The good response has been continuing from last week. I sold about 1 tonne of gold last week," said a dealer with a state-run bullion importing bank in Mumbai.

The most-active gold for February delivery was trading 0.38 percent higher at 20,450 rupees per 10 grams at 12:59 p.m., still down 2.3 percent from the record high of 20,924 rupees struck last month.

International spot gold edged higher, after losing 3.5 percent in the first week of 2011, as fears over the euro zone debt crisis buoyed appetite for bullion, and bargain hunting in the physical market provided support.

"I am expecting good sales to continue today as well at $1,370-1,375 (an ounce)," said the dealer with the state-run bank. Weddings in India, the world's largest consumer of yellow metal, will re-start next month.

Gold traders also awaited direction from the rupee, which plays an important role in determining the landed cost of the dollar-denominated yellow metal.

The Indian rupee held its ground, supported by firm Asian peers and a sharp drop in the country's trade deficit in December.

Only 5 % Investment is of NRI's - At Least 95 Percent of Investments in the country is Domestic Investment

2011-01-10T01:55:00.000-08:00

Planning Commission Deputy Chairman Montek Singh Ahluwalia today dispelled the impression that India was after NRI funds saying that more than 95 per cent of investment comes from domestic sources.

"I think we can get rid of the notion that we are connecting with the NRIs (Non-Resident Indians) because we want investment...we are not reaching out to NRIs because we need money," Ahluwalia said at the Pravasi Bhartiya Divas organised by the government in collaboration with industry chamber CII .

"At least 95 per cent of investments in the country is domestic investment," Ahluwalia said adding, "if you feel your money is well spent here, you are welcome... If you think in another country you can do better... as an economist I will tell you that is exactly what you should do."

Sharing the dais with Ahluwalia, Minister for Overseas Indian Affairs Valyar Ravi said, "The NRIs share in the foreign direct investment (FDI) in the country is just 1.3 per cent."

According to the latest government data, the cumulative FDI in the country since 1991 stands at USD 179.45 billion.

Although, the NRI investment in the country is not huge, but the remittances from workers are significant. India received USD 46.9 billion as remittances during 2008-09.

Ahluwalia pointed out, "We are reaching out (to NRIs) because we value the long, socio-cultural footprint that we all share.

"So, honestly I would tell you, if you don't feel ready to invest in India, don't be apologetic. It's our job to get investors...Indian or foreigner doesn't matter," he added.

India is planning to double the investment in infrastructure to USD one trillion in the 12th Five Year Plan (2012-17) compared to USD 500 billion in the current Plan.

Fixed Deposit (FD) Some Basics

2011-01-10T01:54:00.000-08:00

Banks have been raising interest rates on fixed deposits of various tenures by 0.5-0.75% in the past two weeks. A three-year FD in the second week of December 2010 was earning as much as 8.30-8.50%. The interest rate has since swelled to 9%. A senior citizen might even earn 10% by picking the right bank FD.

In this backdrop, it is tempting to withdraw an FD and deposit the money with a bank offering a higher interest rate. Here is why you should not rush.

Banks usually levy a penalty in the form of a 0.5-1% lower interest on customers looking to ditch their account for a rival’s.

"When the interest rate goes up in quick succession, people will start breaking existing deposits. Bank will feel the pressure," says S Govindan, general manager of personal banking and operations department at Union Bank of India. Banks are okay with customers reinvesting money with them, though there are exceptions.

HDFC Bank is one. The bank has said it will charge a 1% penalty on premature withdrawals for all fixed deposits, including sweep-in FDs (accounts that combine savings-current and fixed deposit features) and partial closures, from 24 January 2011.

Penal interest

ICICI Bank already charges a 0.5-1% lower interest rate to end an FD. The penal interest is 0.5% for a one-year deposit and 1% for deposits below `5 crore but with a higher tenure. A spokesperson of ICICI Bank said the penalty applies even if the money is re-invested.

Not every bank imposes a sweeping fine on withdrawals. IDBI Bank said last week it will not fine new or renewed FDs opened from January 1, 2011.

The penalty of 1% lower interest when people renew existing FDs or open a new deposit will now be waived off, says RK Bansal, executive director and chief financial officer of IDBI Bank.

If you break the FD now

It is a customer-friendly measure, says Bansal. People want to re-invest when rates rise, he says, though FD termination creates an asset-liability mismatch for the bank.

Like IDBI, public sector counterparts such as State Bank of India , Bank of Baroda , Punjab National Bank and Union Bank of India also impose a charge on premature withdrawal, even if it is partial. There is no fine on a deposit renewed for higher interest rate, said officials of these banks.

UBI’s Govindan says there was always a penalty on breaking an FD. UBI charges a lower interest rate of 1% on an FD removal. "But if you re-invest the same amount for a period higher than the remaining period of the original FD, the penalty is waived off," he says.

The waiver is paying off. "We are seeing people who were in for the shorter term are breaking existing FDs and going for the longer-tenure FDs because of the attractive interest rate," says Govindan.

The Reserve Bank of India had asked banks to allow conversion of fixed, recurring or daily deposits for reinvesting without reducing the interest as a penalty. In April 2010, RBI reversed its stance, saying banks can decide their own charges if people convert deposits to earn higher interest.

The leeway to banks means a rethink on pulling out money is in order. For a customer, it pays to calculate the penalty as some banks do not tell upfront about the charges while ending an FD prematurely. The accompanying tables will help you decide.

"Breaking an FD is helpful to a customer only if there is a rapid increase in interest for two weeks or one month as we have seen now," says Govindan. "If the rate moves up in the range of 300 bps (3%) in quick succession, you benefit."

NRIs to be Taxed on their global income

2010-10-20T04:23:00.000-07:00

NRIs to be Taxed on their global income

A new bill pending in India’s parliament proposes to tax NRIs on their global income if they spend more than 60 days in a year in India. Under existing Income Tax laws, NRIs are taxed on global income only if they spend over 182 days in India in a year. NRIs are also liable for Indian taxes if they reside in India for a period of more than 365 days over a four-year period.

The taxes will kick in on the global income of NRIs who live in countries with which the country has Double Taxation Avoidance Agreements (DTAA) , and that have lower income tax rates than India. India has DTAAs with 74 countries, including the USA, Singapore, UK, Australia, New Zealand, Thailand, South Africa and Saudi Arabia. The liability will be even higher for NRIs living in non DTAA countries, as they will be subject to double taxation, both in India and their foreign country of residency.

NRI in support of NDA

2010-10-20T04:18:00.000-07:00

Non resident Biharis are also showing interest and curiosity on assembly election in Bihar, Nitish Kumar seems to be the most favored candidate among NRI Biharis and they offering suggestions about improvement in the energy sector by wooing new investors.

Rajiva Ranjan Das, a consultant colorectal surgeon at DR Gray’s Hospital of Elgin, UK says “Nitish Kumar has turned out to be honest and hard working who has tried for development in his five year term. He should again return with a maximum majority.” According to another UK based NRI doctor, Ganesh Sarin, “Development should be the motivating factor for voters. When the works done in last few decades is compared with the progress of the last five years, it is undoubted that the present NDA government has achieved better.”

Sarin also stated “Starting a journey from scratch and achieving 10-15% growth in five years is a remarkable achievement. It was surely a challenge for the government to achieve this development.” Shashi Shekar, another private consultant at US feels that Nitish Kumar government should go for another five years term and try to boost the energy sector. He says “Bihar has failed in the energy sector till now. To make improvement, it is needed to look into the power scenario.”

NRI investment in property or home loans

2010-10-13T03:19:00.000-07:00

NRI investment in property or home loans

Most NRIs give a lot of thinking before investing in property in India and most of the time put off the plan due to effort, research and planning involved and in some instances if they do not have enough funds for the same. For such individuals there is always the NRI home loan.

RBI defines NRI as "An Indian citizen who holds a valid Indian passport and who stays abroad for employment or for carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a NRI."

Purpose of the NRI Home Loan
The NRI loans are made available for the following purposes:
Self-construction of a property on a plot of land
Finance the purchase of a plot of land allotted by a society/development authority
Renovate/improve an existing property in India
Purchase of a house either under construction or on a resale

Non-resident Indians are also permitted to purchase an existing house or flat. The RBI has not prohibited banks from providing financing to NRIs for the purchase of a second house, but the loan on the house is for the self-occupation of the NRI upon their return to India. Loans are also offered to NRIs against NRE deposits. These loans can be repaid out of NRE funds but the interest would be charged at a commercial rate. Loans to Non-Resident Indians are also provided against FCNR deposits.

Difference between a normal & NRI Loan
NRI home loans can be availed by any NRI with as much ease and convince as any resident would avail a home loan. However some difference between the two kinds of loans exists in terms of tenure, documents, repayment etc. Interest rate is little costlier for NRI than Indian residents, it is 0.25% to 0.50% more for NRIs. The NRI gets the only 85% cost of the property as a loan amount. The tenure of loan is also short ranging from 7 years to 15 years. The size of the loan depends upon the borrower's repayment capacity. Up to 36 times of the gross monthly earnings of the applicant may be issued as loan. However, there is a maximum limit. Calculation of eligibility is same as that of Indians living in the country.

The re-payment can be made as equated monthly Installments (EMI) through Non - Resident Ordinary (NRO) account or the Non Resident External (NRE) Account.

For security, most banks insist that the first mortgage of the property should be in their name. If the property is under construction then adequate additional security is required such as guarantee of third party (either resident or non-resident).

Tax benefits
NRIs cannot claim tax benefits on home loans in India as they have to pay tax in the nation where they work and earn. However, they need to file tax returns to become eligible for home loans. However, if they pay tax in India for income earned in India, they can claim tax rebate for the home loan.

The current scenario
An estimated 25 million NRIs living in 130 countries have remitted US$52 billion so far this year (December 2009). In fact India topped the list of countries in remittance flow followed by China and Mexico, according to World Bank report on Migration and Development Brief.
The impact of global slowdown, job losses and unviable job offers has necessitated a section of NRIs to return to Indian shores.

According to housing finance companies and banks disbursing home loans to NRIs/PIOs in Dubai, there has been a sudden surge in demand for residential property across Indian cities and particularly for Tier II cities in the wake of the economic slowdown in the emirate. Southern cities in particular Bangalore, Chennai and Hyderabad are driving the demand though minimal level demand exists for other cities as well. Most of the NRIs keen to invest in real estate back home are looking for home loans as they are unable to get loans locally due to the current tight liquidity situation across US.

What experts say?
Experts agree that despite turbulence in mature markets, the "emotional appeal" of buying a property in India may be stronger now. However, this in turn has created a price increase in the last six months.
Popular property portals claim that the number of queries from NRIs has surged nearly 15-20 per cent over the last two-three months. However, just how many of these 'queries' translate into actual sales remains to be seen, say people behind the business. The focus on NRIs for these portals is stronger now as many are looking to come back to India apart from those who wish to invest in properties.

Another factor that seems to favour NRIS is the FDI Policy that permits FDI up to 100% from foreign/NRI investor under the automatic route has boosted NRI confidence. Banks have attractive NRI housing schemes to accommodate the housing needs of NRIs. From the stables of HFCs, NRI housing finance plans with suitable repayment options are available. The easy interest rates on housing finance and the improved lifestyle that developers have created has enabled NRIs to acquire property not only for investment, but also for personal use.

Access to NRI loans - at the door step
The response to the real estate market has been so encouraging from the overseas community that it has prompted housing finance companies (HFCs) to set up branches in countries where there is a high NRI concentration, as in the case of ICICI Bank. The bank has representative offices in Dubai, New York, Bahrain, Singapore and the UK to tap potential property investors there.

ICICI Bank, Sundaram Home Finance Limited, LIC Housing Finance, HDFC, CanFin Homes, Citibank and a host of other scheduled banks are vying for lending opportunities to NRIs. However the final decision on whether the time is right to buy a house, whether to use one's own funds or to take a loan, whether to go for an independent house or an apartment, and which home loan provider to use must be made by the NRI himself/herself after careful analysis.
What this means for the realty market

Builders are looking to make up for the huge losses in the past year or so. With growing NRI interest in Indian properties, reports suggest that the realty prices have rebounded to 2007-2008 levels, which however cannot be good news for people scouting for homes with toned down prices. This is again an example of how a reaction in one corner of the globe can affect another. Sometime back the same scenario happened with rentals, which shot up with a lot of NRIs returning home to take up jobs in India.

CAR insurance soared by a record 40.5 per cent in year in UK

2010-10-13T03:13:00.000-07:00

CAR insurance premiums have soared by a record 40.5 per cent in year in UK

The average comprehensive policy now costs £703.79, according to research by the AA.

Meanwhile, third party, fire and theft cover - often used by young and higher-risk motorists - has soared to an eye-watering £1,098. Seven people are killed or seriously injured every day in accidents involving young drivers, leading more than half of insurance firms to refuse cover to anyone under 21.

Those males between 17 and 22 who can get insurance saw their premiums rocket 46.6 per cent to £2,457.

Women in the same age group faced an even higher 58.7 per cent jump, but their policies still average a lower £1,423.

The huge rises have come as insurance companies paid out an average of £123 in claims and costs for every £100 received in premiums.

The AA described that as "unsustainable" and blamed a combination of rising fraud and increased personal injury costs.

It said the insurance industry had been unprofitable for years as intense competition kept premiums artificially low. And it warned steep increases were likely to continue next year to counter rising claims costs.

The AA pointed out that one car insurance company had gone into administration in the past year, while three more had either left the market or intended doing so.

Others were hiking premiums and being more selective about who they insured.

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Nearly a third of male drivers killed or seriously injured during 2009 were under 25, with under 21s TEN times more likely to have an accident than those over 30.

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Reliance Life Insurance Highest NAV Advantage ULIP Plan

2010-10-13T03:11:00.001-07:00

Reliance Life Insurance Highest NAV Advantage Plan
Reliance Life Insurance Company (RLIC), part of Reliance Capital promoted by Anil Ambani , Tuesday announced the launch of a new unit linked insurance plan (ULIP).

The Reliance Life Insurance Highest NAV Advantage Plan offers guarantee on maturity with the highest Net Asset Value (NAV) per unit achieved during the entire 15-year policy term.

"Our new unit-linked plan fulfils the diverse needs of customers across different segments while addressing their need for long-term wealth-creation and increased life protection," said Malay Ghosh, executive director and president, RLIC.

This is the first ULIP launched by Reliance Life after the insurance regulator, Insurance Regulatory and Development Authority, came out with revised guidelines a few months ago.

The plan pays the beneficiary double the sum assured plus total fund value in the event of accidental death for the base cover portion. The unique plan also offers the benefit of up to 100 per cent equity exposure during the policy period.

The plan, which is available for customers in the age group of 7-65 years, also provides liquidity through partial withdrawals after fifth policy anniversary and loan after the completion of second policy year and top-up option to the policyholder.

It is available under two minimum payment options. The regular option allows customers to pay Rs.20,000 annually, half yearly, monthly and quarterly. In the single premium option, the customer pays a minimum of Rs.50,000 only once at the beginning of the policy tenure.

India’s top IT firms TCS, Infosys and Wipro to hire nearly 90,000

2010-10-13T03:05:00.000-07:00

India’s top IT firms TCS, Infosys and Wipro to hire nearly 90,000

For over two million software professionals in India recovering from last year’s recession blues, when employers trimmed payrolls and froze hiring, there’s finally some good news ahead.

According to software industry lobby Nasscom , India’s top IT firms, including Tata Consultancy Services , Infosys and Wipro , are set to hire nearly 90,000 this year, compared with only around 20,000 last year. For the first time since the global economic crisis forced IT companies to freeze hiring and shed jobs in December 2008, employment in the sector is now looking up.

Recruitment firms and HR honchos at leading IT firms say the sector has witnessed the highest-ever job creation in September, with staff strength growing over 50%, similar to pre-recession levels.

“This is the highest hiring growth recorded in the IT sector since recession. We expect similar momentum till November since companies will be required to complete their annual hiring plan before next year,” says E Balaji, director & president, Ma Foi Randstad. He estimates IT hiring to have grown 20-22% during August-September over the same period last year.

Till 2008, even a 15% attrition rate was conservative in an industry where some firms struggled to keep it below 20-30%. However, with lar GE customers like JPMorgan, Citibank and GE sending more projects to India and with firms such as IBM and Accenture under pressure to hire more in low-cost locations like India, the war for retaining and hiring talent is back.

Apart from looking to serve new projects with fresh recruits, companies are also beginning to build bench strengths for future business. “IT biggies are stocking up skills and training them in advance in anticipation of new contracts they are expected to bag in the near future,” said Pradeep Udhas, executive director and head of IT advisory, KPMG.

“Some of them are also expecting attrition, and hence a preventive measure. All major companies like TCS , Infosys, and Cognizant have exceeded their expected earnings levels,” he added. He expects the renewed hiring momentum to continue for another year.

MphasiS, which declared a manpower base of 38,275 in its last quarterly results when it added 1,156 employees, says there are currently more than 2,000 vacant positions within the company.

“We never stopped hiring even during the downturn. What is encouraging is that some of the other companies that ceased recruitment have again started hiring,” says MphasiS chief human resource officer Elango R.

Headhunters say recruitment in tier-I companies are at pre-recession levels, but they say it will still take some time to pick up in the mid-level as the market landscape has changed. However, they say specialist companies like those in product development, analytics and testing are still growing and so has recruitment in tandem.

“Recruitment may be back, but there is much more sanctity now,” says Ikya Human Capital Solutions MD Ajit Isaac. “Recruitment is much more planned now with a small bench. Companies are also much more disciplined and avoiding employees who frequently change jobs,” he says.

Interestingly, Mahindra Satyam, which is on a comeback trail, plans to recruit some 3,000 by February next year. The company, with some 27,000 employees on rolls, has been hiring fresh talent for the past few months now and has already added 3,000 people during May-July.

India is most mobile global job market in the last six months

2010-10-13T02:59:00.000-07:00

India is most mobile global job market in the last six months

India has seen the maximum number of job switchovers in the last six months, making it the most mobile global job market, according to a report by Ma Foi Randstad, a leading global hiring agency.

According to the survey, which was conducted among 35,400 employees across 26 countries, India has the highest mobility index of 141. This implies that more employees from India switch jobs as compared to their global counterparts.

“This is corroborated by the findings of the factual job changes in the past six months, where again the scores are the highest in India followed by China.

Also, a significant proportion of employees in India, China and Mexico are confident of finding another job,” the survey report said.

According to the survey, the mobility intent index of 148 was highest amongst those in the age group of 25-34 years and this trend is similar to the last quarter.

With relatively higher focus on promotion, this is the most vulnerable group in Indian organisations in terms of attrition as compared to employees in other agegroups,” it said.

High inflation, coupled with high aspiration levels, is the key reason for the high mobility intent for employees in this age group, the report added. Eight out of ten Indian employees surveyed in this age group said they would move to an organisation that promises faster and better development.

At 153 the mobility intent index is the highest among people earning between Rs 90,000- 2,00,000 and the factual job change in the past six months is relatively high within this group. The report says that this is a result of high inflation, which is bringing down the real purchasing power and, thus, resulting in the need to earn more.

Among the four metro cities the mobility index was highest in Delhi followed by Bangalore. The factual job change in Delhi was relatively high at 51 per cent.

The report pointed out that satisfaction with the employer is highest in Mumbai at 82 per cent and lowest in Delhi at 69 per cent. Also, employees in Mumbai were less likely to switch jobs as compared to the last quarter.

“The differential scores between Mumbai and Delhi indicate that employees in Delhi have higher expectations from their employers compared to their counterparts in Mumbai,” the survey added.

The survey showed that the temporary workforces were more likely to change their jobs and the trend was likely to continue in future.

“On the back of economic recovery most organisations have been opting for increased flexibility leading to high demand for temporary workforce. This has increased the opportunities for the temporary workforce leading to higher mobility,” it said.

K. Pandia Rajan, chief executive officer, Ma Foi Randstad (India & Sri Lanka), said, “ Though the study reflects an increase in the mobility, it also brings to light the fact that employees would be satisfied with organisations that are better equipped to handle their developmental plans.” “ This should give great insights to organisations to focus on employee engagement and development,” he added.

Fixed Deposits as popular investment option

2010-10-11T05:48:00.000-07:00

Fixed Deposits as popular investment option
Fixed Deposits (FDs) have always been a very popular investment option. Safe, secure and good returns - these features have worked in favor of FDs making them a 'must have' in everyone's investment portfolio.

However, with the rising popularity of mutual funds and investors seeking high returns, FDs seemed to have lost their charm amongst savvy investors. Low interest rate on FDs was a major factor contributing to the reason that investors started looking out for other options. Recently though, interest rates on FDs are on a rise and investors are again considering investing more in FDs.

Difference between fixed maturity plan and fixed deposit?

Fixed maturity plans, or FMPs, are schemes floated by mutual funds and they work almost like a bank fixed deposit (FD). They come with different maturities like three months, six months, one and two years and rarely for three years.

FMPs invest in instruments of matching maturity and this gives investors a rough idea about the likely returns you can hope to pocket at the time of subscription. Since the portfolio is locked, investors are also shielded against interest-rate risks.

Also, FMPs with a maturity of over one year have a tax advantage over fixed deposits. Investors in FMPs have an option to pay tax on long-term capital gains at 10% without applying indexation or 20% after applying indexation to the cost of acquisition.

Interest from FDs is taxed according to the tax bracket applicable to the person. However, don’t go by the post-tax returns alone, as unlike bank FDs, FMPs do not offer assured return or capital protection.

If you plan to invest in FMPs, always look at the reputation of the fund house. This is very important because during the economic downturn two years ago, many fund houses got into trouble as they invested in low-rated papers from dubious companies, especially in the real estate sector. They just about managed to come out unscathed because of timely regulatory intervention and support.

However, the tricky thing about investing FMPs these days is you neither have an indicative portfolio nor return. So everything hinges on the integrity of the fund house.

Though an investor is supposed to stay invested till maturity in FMPs, fund houses also list FMP on stock exchanges so that investors can exit if they need money urgently. However, this does not guarantee enough liquidity and attractive price.

In short, consider investing in FMPs if you are comfortable with the concept and want to take a little risk to make superior tax-efficient returns.

Saral Maha Anand - New ULIP product of SBI Life Insurance

2010-10-11T05:42:00.000-07:00

Saral Maha Anand - New ULIP product of SBI Life Insurance
SBI Life Insurance on Monday said that it has launched a new unit-linked insurance plan (ULIP) called Saral Maha Anand.

This is the third ULIP product launched by the insurer since the introduction of the new ULIP norms by the insurance sector regulator, IRDA, last month.

SBI Life had earlier launched two products -- Smart Performer and Unit Plus Super.

Saral Maha Anand , its new ULIP product, is available at an affordable yearly premium starting from Rs 15,000 onwards and the product has been designed to cater to investment and protection needs of the middle-and-low-income segments, a press release issued in Mumbai stated.

The product is exempted from medical-examination. SBI Life Insurance's managing director & CEO, MN Rao, said, "the product offers simplicity and affordability so that a larger section of society can participate and benefit by systematically investing over a long-term horizon."

Wealth of Over Rs 1 Crore 1% Tax on Net wealth

2010-09-08T23:10:00.000-07:00

Wealth of Over Rs 1 Crore 1% Tax on Net wealth

The proposed Direct Taxes Code, which is expected to replace the existing Income Tax Act in 2012, has proposed to impose 1% tax on net wealth in excess of Rs 1 crore. The rate may seem harmless, but the trouble is that it has included archaeological collections, drawings, paintings, sculptures, wristwatches worth over Rs 50,000, besides cash in hand above Rs 2 lakh among other things into the list that forms wealth. In short, the high net-worth individual ( HNI) is in for some taxing times.

Under the existing law, the threshold level to kick in the wealth tax provisions is Rs 30 lakh. However,
in the existing provision, items like watches, paintings and sculptures and deposits with foreign banks are not included.

According to HNIs and the experts who manage their money, these seemingly innocent additions to the list in the new tax co de bill are likely to make life difficult for them. There would be disputes over the valuations of these pieces with the IT department as there is no uniform method to value them. This could almost result in a throwback to an era when an encounter with the I-T officials used to give people sweaty palms. Sadly, it may also have an adverse impact on individuals' appetite for collecting artworks and artefacts, a trend slowly emerging in the country, with unintended victims being budding artists and tribal artisans.

A small solace is that the first house is exempt from the wealth tax net. Considering the runaway price in real estate, it would have otherwise cast every owner of a modest 2-BHK in the suburbs into the tax net.

The DTC provision is particularly harsh on foreign citizens, including the person of Indian origin, says Singh. If you have worked abroad, created some assets there and moving back to India, you will have to pay wealth tax on your foreign assets if you have taken Indian resident status. In such a situation, you will have to pay 1% tax on your deposits in foreign banks and on the value of other assets in foreign countries.

House property income would be subject to tax under DTC

2010-09-08T01:38:00.001-07:00

Indians typically consider house property as an important source of investment for long-term returns.

However, with the Direct Taxes Code (DTC), 2010, proposing significant changes in the way house property income would be subject to tax, it becomes imperative for investors to take note of the changes and plan their investment decisions accordingly.

Rental Income:

The income from letting out a house property will be computed under the head — income from house property. The income from house property will be computed as gross rent less the deductions specified under DTC. Gross rent is the amount of rent received or receivable for the financial year.

One can claim deductions for the amount of tax paid to the local authority, a sum equal to 20% of the gross rent in respect of repair and maintenance of such property, and the amount of any interest paid on loan taken for the purposes of acquisition, construction, repair or renovation of such property; or the interest paid on the loan taken for the purposes of repayment of the loan. There is no restriction on the amount of interest that could be claimed as deduction in case of a let-out property.

Further, any interest in respect of the period prior to the financial year in which the house property has been acquired or constructed can be claimed as deduction in five equal instalments, beginning from the financial year in which the property has been acquired or constructed.

If the house property is owned by two or more persons with “definite and ascertainable” shares, then their income from such house property shall be computed separately in accordance with respective shares.

Self-occupied house

The provisions for the self-occupied house are broadly similar to those under the current tax law. Thus, in case of a self-occupied property, a deduction can be claimed up to Rs 1.5 lakh for the interest paid on a loan taken for the purposes of acquisition, construction, repair or renovation of a house property in the year which such property is acquired or constructed.

It is important to note that certain conditions must be satisfied to claim this deduction, which include that the house property should be owned by the person and not let-out during the financial year.

Gold Towards new Record High

2010-09-08T01:32:00.000-07:00

Gold towards new record High

India gold futures may extend gains at the open on Wednesday and hit record high later in the day supported by strong overseas leads, analysts said.

The most-active October gold contract on MCX last closed at 19,169 rupees per 10 grams, up 0.7 percent, after hitting a record high of 19,211 rupees in the previous session.

Gold overseas was within sight of a two-month high hit the previous day, as global sharemarkets tumbled and the euro slipped on renewed fears about the health of the global economy.

Buy gold around 19,130, targeting 19,250, maintaining a stop loss of 19,080.

Farm land, gold are good investment options

2010-09-08T01:29:00.000-07:00

Farm land, gold are good investment options:
Michael Burry, the former hedge-fund manager who predicted the housing market’s plunge, said he is investing in farmable land, small technology companies and gold as he hunts original ideas and braces for a weaker dollar. “I believe that agriculture land — productive agricultural land with water on site — will be very valuable in the future,” said Mr Burry in a Bloomberg Television interview.

“I’ve put a good amount of money into that,” Mr Burry, as head of Scion Capital, prodded Wall Street banks in early 2005 to create credit-default swaps to bet against bonds backed by the riskiest home loans. The strategy paid off as borrowers defaulted, letting his investors more than quintuple their money from 2000 to 2008, according to Michael Lewis’s book “The Big Short”.

It’s possible to find opportunities among small companies, because large investors and government officials focus on bigger ones, he said. He is particularly interested in small-technology firms. “Smaller companies in Asia, I think, are neglected,” he said. “There are some very cheap companies there.”

Investing in Gold

Gold is also a favoured investment as central banks issue debt and devalue their currencies, he said. Governments haven’t adequately addressed the causes of the financial crisis and maybe sowing the seeds for future problems by borrowing, he said.

In the US, lawmakers showed they didn’t understand how to prevent another crisis when they gave the Federal Reserve and chairman Ben S Bernanke additional authority, he said.

Background in Medicine

Originally, investing was a hobby for Mr Burry, who as a resident neurosurgeon at Stanford Hospital in the 90s typed his ideas onto message boards late at night. It’s possible Mr Burry is part of “an extremely small group” of economists and investors who are “really exceptionally adroit” at forecasting, former Fed chairman Alan Greenspan had said in April. Mr Burry has been critical of the role Greenspan played in fuelling the crisis with low interest rates.

Goldman Sachs

Mr Burry said Wall Street i-banks such as Goldman Sachs Group shouldn’t trade on their own account and don’t always act in the best interests of their clients. The firm is disbanding its principal-strategies business, one of the groups that make bets with the company’s own money, two people with knowledge of the decision said last week.

DTC May create more Tax pressure to NRI's

2010-09-07T05:20:00.000-07:00

DTC May create more Tax pressure to NRI's

More non-resident Indians (NRIs) are likely to start paying income tax in the country when the proposed Direct Taxes Code (DTC) Bill becomes law and comes into effect from April 1, 2012.

The new bill introduced in Parliament proposes to impose tax on the global income of NRIs if they stay in India for a period or periods amounting to more than 60 days in a year.

Under the existing Income Tax Act, 1961, an NRI is liable to pay tax on global income if he is in India in that year for a period or periods amounting to 182 days.

In short, if an NRI wants to escape the tax net he will have to spend 10 months out of the country compared to six months under the existing law.

The new DTC also retains the existing provision under which an NRI is also liable to pay tax on his global income if he resides in India for a period of 365 days or more over a period of four years prior to the assessment year.

According to senior officials, the purpose is to prevent the evasion of tax by some individuals who deliberately take up NRI status and organise their travel plans merely to avoid paying tax.

It is expected that longer stays abroad would be more costly and also more inconvenient for such individuals who enjoy a higher standard of living in their own country.

"They are, therefore, likely to offer to pay tax rather than incur a higher expenditure and face the inconvenience of a long stay abroad," a senior official said.

In addition, DTC has removed the ' resident but not ordinarily resident (RNOR)' category to simplify tax laws. Now, there will be two categories, 'resident' and 'non-resident', which makes things simpler and clearer.

According to tax experts, there would be a liability on an NRI who carries out business in a country with which India has a double taxation avoidance agreement (DTAA). The non-resident would be considered a resident if he stays for more than 60 days in India.

In the case of a resident of a non-treaty country with which India does not have a DTAA, the tax burden would be higher if he stays for more than 60 days in India.

The individual will have to pay tax on all the global income in India as well as the country of residence as per the prevailing tax laws of that country.

At present, India has comprehensive DTAAs with about 74 countries, including the US, the UK, Singapore, Thailand, New Zealand, Australia and Saudi Arabia.
NRIs to face more tax pressure in new DTC

Drug Prices could further increase - FDI cap at 49% in pharma

2010-09-07T05:11:00.000-07:00

Fearing uncontrolled mergers and acquisitions (M&As) by foreign drug firms that could lead to further increase in drug prices and also cartelisation, the government is eyeing capping the 100 per cent foreign direct investment (FDI) currently allowed through automatic route in the pharma sector at 49 per cent and that too through the government route.

The finance ministry as well as the Planning Commission have advised the concerned ministries to expedite the process to ensure that 65 per cent of Indians, who according to the World Health Organisation (WHO) still lack access to essential medicines, are not deprived of affordable and high-quality medicines.

Earlier this year, Piramal Healthcare sold its domestic formulations business to US-based Abbot for Rs 17,353 crore.

This is the second-biggest acquisition of an Indian drug firm, after the country's largest drug maker Ranbaxy was acquired by Japan's Daiichi Sankyo for Rs 21,574 crore in 2008.

Concerned that acquisition of Indian pharma firms by multinational corporations (MNCs) was impacting the availability of low-cost medicines, the commerce and industry ministry, which formulates FDI norms had proposed tightening the rules so that Indian acquisitions by MNCs flow through it and not through the automatic route.

It had also mooted the idea of offering licenses to domestic firms to produce patented drugs to protect consumers' interests.

The commerce ministry has also come out with a discussion paper on "Compulsory Licensing"-a system whereby a third party other than the patent holder is allowed to produce and market a patented product or process-for formulating a coherent and concerted approach. The discussion paper seeks views from all stakeholders by this month-end.

Several developed and developing countries have introduced compulsory licensing. But these licenses under WTO norms have not taken off in India yet due to the absence of manufacturing facilities. Currently, a large part of the cancer drugs sold in India are patented and manufactured by MNCs such as Novartis, GSK and Roche, which cost over a lakh for a month-long treatment making these drugs unaffordable for the Indian population.

The paper also points at legal provisions and other related aspects of patent laws in India. It suggests the introduction of a compulsory licensing system to put a check on spiralling drug prices. It has also suggested measures to make available affordable drugs within the ambit of the National Pharmaceutical Pricing Authority (NPPA) by expanding the number of drugs from its current scrutiny of pricing of 74 drugs. Another option could be by invoking the Competition Act, 2002.

The health ministry has also objected to lobbying by global drugmakers to change India's intellectual property rules.

The Prime Minister's Office (PMO) had circulated a note based on views by global drugmakers that seeks changes such as legislative review of India's patent laws, data exclusivity and implementation of patent linkages.

If implemented, the proposals can have a huge bearing on the grant of patents in India, affecting the cost of treatment.

Lack of Transparency in Gold jewellery prices

2010-09-07T05:10:00.000-07:00

While the price of gold is fixed and uniform, there is no uniformity in the making charges. While branded jewellery is sold with making charges of Rs 150 per gram or even more, the small jewellers charge Rs 60-80. Sometimes, your family jeweller may be willing to let go of even that labour charge.

And in the capital's jewellery markets, the banners and hoardings all around claim 'Pure Gold-No Making Charges'. So, how is it that when the price of the gold is the same at all showrooms, jewellers sell the ornaments by charging a nominal amount as making charges? Afterall, the jewellers have also to pay the wages of the goldsmiths and bear the overhead costs.

The answer to this question was provided in October, 2001 by the Bureau of Indian Standards (BIS). In a survey conducted by BIS on gold jewellery, 15 jewellery items were purchased from small and big outlets located in seven important markets of Delhi. All the jewellers assured that the pieces purchased were of 22 carat gold with the 916 required fineness. All the 15 samples comprising bangles, rings, chains, eartops and necklace sets were tested as per ISI 1418: 1999 standard at a BIS approved assaying centre of MMTC. The results, however, were an eye-opener.

Out of the 15 samples, only three were found to be of the claimed purity. The rest were of much lower purity than the claimed 22 caratage. On an average, the purity fell short by 15.5 per cent. Out of 12 samples, seven were short in purity by more than 15 per cent.

Thus, six samples of 22 carat gold turned out to be 18 carat.

One sample was of 13.5 carat, one of 19 carat, another of 21 carat, a fourth of 17 carat and the remaining two were also below the claimed 22 carat.

There is yet another allurement.

Every jeweller will assure you that he will buy back the ornaments, if returned, at the then prevailing rate of gold.

The knack is that the ornaments are rarely returned because they pass on from one generation to the other and by the time, they are to be returned, if at all, for remaking, many years have passed by and no one remembers from which shop they were purchased.

Even if one manages to reach the same jeweller on a rare occasion, he will gladly pay the price prevalent but deduct in the process the tanka, wastage, meena and polish charges.

All this tantamounts to unfair trade practice because the consumers do not get the ornaments of the projected quality.

If the jewellers levy the full making charges and add to it their reasonable profit, the consumers will at least get the ornaments of the claimed caratage. But with the currently prevailing deceptive methods of reducing the making charge, the ornaments of far lower purity are passed on. This has been going on since times immemorial.

The above trade practice was noticed by the MRTP Commission as well as by the Consumer Courts. But barring passing orders in isolated cases, no action of general application has been taken and the malaise has been continuing.

Pending the authorities taking up the issue for an authoritative verdict, two courses need consideration for immediate implementation. One, that the jewellers can be directed to charge their due making charges and not to meddle with the quality of gold. The second alternative is to ensure that only hallmarked jewellery is sold. Jewellers will never do so voluntarily because they will have no chance of fooling the customers as has been going on everywhere.

Hallmarking is a foolproof method to accurately determine and record the exact gold content in the jewellery. It is high time that the governmental steps in and makes hallmarking of jewelery obligatory to put an end to fleecing gold buyers.

Apple iPhone4 with Airtel in India by October

2010-07-19T04:58:00.000-07:00

Apple iPhone4 with Airtel in India by October

iPhone4 is coming in India with Indian largest telecom service provider Bharti Airtel
Bharti Airtel already sells iPhone 3GS in India priced at Rs 35,500 for the 16 GB model and Rs 41,500 for the 32GB model. iPhone4 is one of the most demanding mobile phones all over the world.

Hyundai's low-cost small car

2010-06-25T10:29:00.000-07:00

Hyundai's upcoming low-cost small car is the big competitor of Maruti's Alto, the country's biggest-selling model. The car will be priced higher than Nano but lower than Alto. It is expected to hit the roads around 2012, with a petrol engine of over 800cc, bigger than Nano's 624cc.

At around Rs 2 lakh, the car will be priced lower than Santro's current entry price of Rs 2.73 lakh (ex-showroom Delhi, non AC), giving Hyundai an entry into one of the big volume segments. The Alto has a starting price of Rs 2.28 lakh. Companies like Hyundai and GM are eyeing the Alto segment and are working at products that can dent into its market share.

Home loan benefits in new Tax System

2010-06-16T01:27:00.000-07:00

Home loan benefits in new Tax System

The revised discussion paper on the Direct Tax Code (DTC) has proposed to continue with the existing system of deducting interest payment (up to Rs 1.5 lakh) against home loan from total income before calculating the tax liability.

The discussion paper released on August 2009 had proposed to do away with all the exemptions, including the tax benefit on interest payment against home loan. This, if implemented, could discourage home buyers.

However, the department had also increased the exemption limit to Rs 3 lakh from the present level of Rs 1.1 lakh against investments in select instruments like PPF, pension funds and life insurance schemes. The Rs 1.5 lakh interest benefit against home loan will be included under 3 lakh ceiling.

In the DTC, the government had earlier argued that as the exemption limit against investments has been increased, taxpayers will not be affected if benefit on interest payment against home loan is withdrawn. However, the withdrawal attracted a lot of criticism. And the government finally decided to get back to the earlier system.

Even if the interest payment against home loan is not treated as a separate category and will be the part of the exemption limit of Rs 3 lakh, taxpayers will still benefit. According to the original DTC proposal, interest payment against home loan was not allowed for deduction from the income. As many middle-income taxpayers will find it difficult to exhaust the 3 lakh ceiling,inclusion of interest payment of Rs 1.5 lakh in the total exemption limit will be beneficial.

According to experts, government should continue with the deduction against interest payment on home loan as a separate category, considering contribution of the housing sector to the gross domestic product.

NRIs Investment mistakes

2010-06-06T04:09:00.000-07:00

NRIs Investment mistakes

Absence of a goal: Not chalked out a goal yet? What’s holding you? Before you park your money blindly in stocks, fixed deposits or the like ascertain when you’d need it. Do you have atleast three to five years? Or would you need your money before that?

For, your money will be able to work more for you that way. If you have a time period of atleast around a year, consider investing in equities. If you think you’d need your money before that, liquid funds are for you. Equities outperform all other investment avenues easily in the long run. And if age is on your side and you’re considering a long time horizon, plunge into equities head on.

Absence of an emergency fund: No emergency fund yet? Life is unpredictable. Set aside funds for an emergency right away. Put aside atleast three months of your monthly expenses if you’re single. And if you have dependents, invest a minimum of six months of your monthly expenses in a liquid fund. You could park your money in flexi deposits, liquid mutual funds to name a few. But take into account the tax implications.

No insurance cover: Not given a thought to insurance yet? You’re not alone. For most, insurance is just another tax saving avenue. But reality dawns when illnesses or death strikes. And by then its too late. Insurance is your safety net that’ll help you handle uncertainties of life with ease. Insure yourself right away if you have dependents. Buy a pure risk cover for the maximum term possible. It’s the cheapest insurance you can buy. A pure risk cover is a must if you have liabilities such as a loan. If you’re a male aged 25 years of age you would be able to easily get a pure risk cover of Rs 10 lakh for an annual premium of around Rs 2,600/- for a 20 year term.

Being too greedy: Who doesn’t want to rake in the most moolah from his investments? But then, opines Bijal Bakhai, certified financial planner, “When your investments have already raked in high returns, it makes sense to slice and book profits. If you wait further to make more, chances are you may end up losing even what you’ve earned. So be contented. If you’ve invested in equity for a year, expect around 18% to 24% and in case of debt expect returns of about eight and a half percent”.

Selling at panic: Collective selling, acting on rumours without basis is akin to herd mentality and can prove dangerous. The stock market is not for the weak hearted so analyse the situation and decide whether to stay invested or ship out.

Borrowing for speculative gains: Banks do offer loans on securities no doubt, but borrowing heavily for speculative gains may mean taking high risks and can ruin your future financially.

Timing the market: Its time in the market and not timing the market that helps you gain the most. Experts have time and again stressed on how even the so-called veterans have not been able to succeed at this one. So don’t ever time the market. Believe in long term investing and watch your investments grow.

Debt MFs : NRI Investment

2010-06-06T04:00:00.000-07:00

For person of Indian origin
Need an Indian passport or apply for an OCI (Overseas Citizen of India) card, or a PIO (Person of Indian Origin) card. For this he needs to show that he was born in India, or any of his previous two generations (parents and/ or grandparents) were born in India.

The process takes anywhere from 3 weeks to 2 months. Simultaneously, the person looking to invest in India needs to apply for a PAN (Permanent Account Number) online.

For NRIs, the cost of transacting directly stocks is higher than that for resident Indians.

NRIs must use their equity accounts to build a long term portfolio as active trading turns out to be expensive.

While every NRI seems to be focusing on equities, they seem to miss out a simple trick of improving their returns without enhancing risks considerably. The long-term trend for the rupee is expected to be stronger. The investor is sitting with थ्10,000 in his bank earning less than 2% pa. In fact, yields on 5-year bonds are 2.25% pa.

At the current exchange rate, Rs 6.75 lakh will be transferred to India and can be invested in 5-year government bonds which yield 7.40% pa. At the end of 5 years, the Indian investment will be worth Rs 16.27 lakh, and the UK investment of थ्10,000 will have risen to थ्21,175. That essentially means that, even if the exchange rate was to weaken for the rupee to Rs 76.84, the investor will have achieved break even.

Loan Against Property by HDFC

2010-06-06T03:53:00.000-07:00

HDFC has said it will give loans only up to 50% of the property’s market value, The loan value can go up to 60% if the borrower is an existing home loan customer. HDFC’s loan against property is available at an interest rate of 11.25% for loans up to Rs 1 crore and 11.00% for loans above Rs 1 crore. The loan term can be up to 15 years for both residential properties and non-residential properties.

Loans

Euro crisis

2010-06-06T03:45:00.000-07:00

With Euro crisis the stock markets developed a risk aversion expecting an implosion with the Greek crisis turning into a 'Lehman II' like situation. world economy is in problem due to heavy debt both on private and government balance sheets. Debt levels is more than 10 times their equity.

Developed economies like the UK, Japan and to an extent the US have too much debt

HDFC Top 200 Fund

2010-05-30T22:11:00.000-07:00

HDFC Top 200 Fund
http://economictimes.indiatimes.com/tv/personal-finance/Top-rated-Mutual-Fund-HDFC-Top-200-Fund/videoshow/5936970.cms

Now Withdraw 1 Lakh From ATM within a Day

2010-05-30T22:02:00.000-07:00

Now customers can withdraw Rs. 1 Lakh from ATM in a day and can shop Rs. 1.25. HDFC is going to update the withdrawal limit for all types of cards.

Till now people have 15k limit of withdrwal from debit card but from 1st June they can withdraw 25k.

Bajaj Planning to Launch Nano Car

2010-05-05T04:32:00.000-07:00

Bajaj Auto has planned to Launch Nano Car with a mileage of 30km/l with eco-friendly and low carbon dioxide emission. Bajaj Auto is planning to compete with TATA nano and its plan is to target the two wheeler customers that

Bajaj is developing ULC with Renault-Nissan alliance and the price will be USD 2,500 (Rs 1.1 lakh) and will be launched in 2012.

http://www.eretailmarket.com

Educational Institutes in India

2010-03-19T23:01:00.000-07:00

Top Medical, Engineering, MBA, BBA, BCA educational institutes in India. How to get admissions and procedure to apply? All the information about the various colleges of top streams.
http://www.eretailmarket.com/education.html

Student Loans in India

2010-03-13T23:32:00.000-08:00

Student Loans and Educational Loans in India
1) SBI Bank
2) ICICI Bank
3) HDFC Bank
Education Loans are available in the market at the rate of 5- 15% from different banks.
Apply for Loans of Graduate and Post Graduate Programs:-

Get a payday loans

2010-03-03T09:54:00.000-08:00

payday loan suggestions: http://get-a-paydayloan.blogspot.com/

Loan Types and Options

2010-03-02T00:38:00.000-08:00

Loans are available to help you to get or buy the properties and costly things that you can’t buy within your salary, so it’s the various loan types that can help you financially. Like if you want to purchase a home of 30 lakhs to 1 crore then probably you can’t have such huge money. So, the banks and other financial companies can help you to buy your dream home.

Insurance Types and Options

2010-03-02T00:30:00.000-08:00

Insurance is available for almost all type of assets that are costly and have value in market and valuable for your family, like in your life the most valuable thing is your life and you can ensure it with the top insurance companies.

Reliance Industries Limited one of the top company of India

2010-03-01T22:44:00.000-08:00

Top company of India:
Reliance
Airtel
ICICI

Indian Railways Centralised Employment Notice No. 03/2010

2010-02-24T08:55:00.000-08:00

Employment News dated 20/02/2010 and also available on Railway Recruitment Boards (RRBs) websites is available at http://www.rrcb.gov.in/rrbs.html.

Assistant Station Master (ASM) : 1991 posts in various RRBs in the pay scale of Rs.5200-20200 Grade Pay Rs.2800

Traffic Assistant : 24 posts in RRB Kolkata only in the pay scale of Rs.5200-20200 Grade Pay Rs.2000

Application Fee : Rs.60/- in the form of IPO / DD in favour of Assistant Secretary of concerned RRB where candidate wants to apply.

Application in the prescribed format should be send to the Member Secretary of the concerned RRB where candidate want to apply on or before 23/03/2010.

Candidates can also apply online at respective RRB websites.

Download form

Jobs in India
Other Government Jobs

Top 10 Tech Companies of India

2010-02-24T08:48:00.000-08:00

Top 10 Tech Companies in India (Turnover in Rs million)

1) Bharat Sanchar Nigam Limited (346162)

2) Tata Consultancy Services (189142)

3) Bharti Airtel Limited (185195)

4) Wipro Ltd (150008)

5) Infosys Technologies Limited (131490)

6) Hewlett-Packard India (119170)

7) HCL Infosystems Limited (118554)

8) Reliance Communications Ltd (117252)

9) LG Electronics India Pvt Ltd (82500)

10) IBM India Pvt Ltd (82450

Car Loans Service Charges ICICI Bank

2010-02-13T07:34:00.000-08:00

Description of Charges Car Loans
Loan Processing Fees

New Car
Gross Loan Amt Processing Fee Amt Documentation Charges
<2.5 L Rs.2500/- Rs.350/-
2.5 L to 5 L Rs.3100/- Rs.350/-
5 L to 10 L Rs.4000/- Rs.350/-
>10 L Rs.5000/- Rs.350/-

Loan Rates and Top Banks

2010-02-13T07:06:00.000-08:00

Cheap Loans : Before taking home Loan, personal Loans, car Loans you must have to compare the loan rate from various top banks HDFC, HSBC, ICICI Bank and SBI. You can get Loan up to Rs. 10 lakhs.

* Home Loans

* Personal Loans

* Car Loans

Home Loan tenure upto 20 years
Floating Reference Rate (FRR/PLR)
Floating Reference Rate (FRR) 12 - 13 %
PLR 14 - 15 %

Top 10 Insurance companies in India

2010-02-09T20:57:00.000-08:00

List of Top 10 Insurance companies in India

1. Life Insurance corporation of India (LIC)
2. ICICI Prudential Life Insurance
3. Bajaj Allianz General Insurance
4. ICICI Lombard General Insurance
5. Birla Sun Life Insurance
6. Tata AIG General Insurance
7. SBI Life Insurance
8. Sahara Life Insurance
9. Oriental Insurance Co.
10. HDFC Standard Life Insurance

Jeevan Nischay

2010-02-08T02:41:00.000-08:00

Jeevan Nischay

Minimum age at entry	18 years (completed)
Maximum age at entry	50 years (nearest birthday)
Policy term	5, 7 and 10 years
Minimum Single Premium	Rs. 10,000/-
Maximum Single Premium	Rs. 10,00,000/-

In this plan, an investment of Rs. 1 lakh would mature into Rs.1.7 lakh after a span of 10 years.

This is based on 'Jeevan Astha' that have guaranteed return during the financial crisis had mobilised around Rs.10,000 crore.

If your age of entry is 35 years then benefits are as follows:

Single Premium	Policy Tenure	1^st Death Benefit	Guaranteed Returns
25000	5 Years	Rs 1,25,000	5.25%
25000	7 Years	Rs 1,25,000	5.54%
25000	10 Years	Rs 1,25,000	5.97%

'Jeevan Nischay' New LIC Plan

Real Estate Investment in India 2010

2010-02-07T23:25:00.000-08:00

As developing country India is growing exponentially in the field of real estate. India is trying to compete with developed countries in real estate infrastructure. Every where there is huge demand of property, flats and apartments. Either you want to choose personal or for commercial use you have to pay very high amount in the metropolitan like Mumbai and Delhi. Almost five per cent of the country's GDP is contributed to by the housing sector.

So, if you are trying to invest in real estate then its a good time for you because property is getting costlier every year.

You can invest in these Real estate areas of high demand and most profitable in 2010

Apartments
Institute
Hospitals
Commercial shops
Shopping Malls
Hotels
Offices

Development in IT ITES, requirement of houses in urban area ( 80 per cent of real estate developed in India is residential)

NRI Real Estate Investment in India 2010

NRI investment options in india 2010

2010-02-07T04:33:00.000-08:00

There are various NRI investment options in india,

NRIs can make investments in all the investments options which are available to Resident Indians.

2010 nri investment options
NRIs can invest in Inidia in

Shares and stocks
mutual funds
Indian equities markets, including IPOs
Company fixed deposits and non-convertible debentures of companies
Real estate investments
Government securities
Bank deposits
National Savings Certificates issued by post offices in India
Deposits in Indian banks

Account needed for investment for NRI :

NRE Account (Non-Resident External Rupee Account)
NRO Account (Non-Resident Ordinary Rupee Account)
FCNR Account (Foreign Currency Non Resident Account)

NRI can invest through 24% and 40% Schemes.

NRI investment options 2010

NRI Real Estate Investment

Debt Consolidation Loan UK

2010-02-05T01:17:00.000-08:00

How Debt Consolidation Loan helps you:
Debt Management through Debt Consolidation is one of the best effective way to consolidate all your Money headache into a single loan. Don't waste your time to manage your various debts differently. Consolidate debts into single loan and break it into affordable installments. You can choose to pay monthly or weekly installment. Also give importance to reducing monthly installments as well as existing APR.

One type of Debt Consolidation Loan also provides facility to Consolidate small payments into one big amount that you need to pay in one single amount.

Apple iPad Unveils

2010-01-28T00:30:00.000-08:00

Steve Jobs unveils Apple's iPad starting with $499. Apple's iPad is the gadget that provides you the best way to experience web, email, games and photos. Anticipation of new Apple tablet boosts stock to rose $2.87 Tuesday to $205.94, a 2.9% increase. Apple Will Rule the World. Steve Jobs Says Apple Tablet “Will Be The Most Important Thing I’ve Ever Done.” iPad will be Shiped in Europe in March Says Apple. Apple have made a device between smartphone and laptops that you can work easily this device is faster than mobile phones and you can experience better gaming facility here. iPad can be PC killer you say.

Pricing scheme

WiFi Model

* 16 GB - $499
* 32 GB - $599
* 64 GB - $699

iPad Specifications

* 1GHz Apple A4 processor (custom)
* 0.5″ thick
* 1.5 pounds

Display

* 9.7-inch (diagonal) LED-backlit glossy widescreen Multi-Touch display with IPS technology

Audio Playback

* Frequency response: 20Hz to 20,000Hz

Battery and Power

* Built-in 25Whr rechargeable lithium-polymer battery
* Up to 10 hours of surfing the web on Wi-Fi, watching video, or listening to music
* Charging via power adapter or USB to computer system

Insurance: Best Investment options and Insurance Companies List

2010-01-25T22:32:00.000-08:00

Insurance is among the best investment option because this provides you the facility to insure your life, property and money as well as provides better and risk free return. There are various investment options available in the market but insurance is more secured option. Insurance Companies are providing various options with affordable premium. Life Insurance, Car Insurance, Home Insurance and Health Insurance are the most popular Insurance categories.

Top Insurance Companies List of India:

1. LIC

2. SBI Life

3. ICICI Prudential

4. Bajaj Allianz

5. Birla Sunlife

6. HDFC Standard Life

7. Reliance Life

8. Max NewYork Life

9. Metlife

10. Tata AIG

11. Kotak Mahindra Life

12. ING Life Insurance

13. Canara HSBC

14. Aviva

15. Bharti AXA

Life Insurance Companies in India

Life Insurer in Public Sector

1. Life Insurance Corporation of India

Life Insurers in Private Sector

2. ICICI Prudential Life Insurance

3. Bajaj Allianz Life

4. Sahara Life Insurance

5. Tata AIG Life

6. Birla Sunlife

7. SBI Life Insurance

8. Kotak Life Insurance

9. Metlife India Life Insurance

10. Max New York Life Insurance

11. HDFC Standard Life

12. Aviva Life Insurance

13. Reliance Life Insurance Company Limited - Formerly known as AMP Sanmar LIC

14. ING Vysya Life Insurance

15. Shriram Life Insurance

16. Bharti AXA Life Insurance Co Ltd

17. Future Generali Life Insurance Co Ltd

18. IDBI Fortis Life Insurance

19. AEGON Religare Life Insurance

20. DLF Pramerica Life Insurance

21. CANARA HSBC Oriental Bank of Commerce LIFE INSURANCE

Home Insurance Companies in India

1. ICICI Lombard - ICICI Lombard General Insurance

2. Oriental Insurance Co. Ltd.

3. National Insurance Company Ltd.

'Jeevan Nischay' New LIC Plan

2010-01-23T02:29:00.000-08:00

'Jeevan Nischay' New LIC Plan is a single premium plan for a existing LIC policyholders. This policy will be available till March 2010. The Jeevan Nischay plan covers only the mandatory five times of the premium amount for the first year of insurance and for subsequent years, the sum insured will be equivalent to the premium paid.

(Ulip) unit-linked insurance plans factors to Favour Insurance companies

2010-01-20T00:54:00.000-08:00

(Ulip) unit-linked insurance plans factors to Favour Insurance companies

Insurance companies are expecting Factors such as rationalistion of Ulip charges, distributors’ aversion to sell mutual fund products in favour of insurance companies, industry officials say.

Microsoft will not pull out of China

2010-01-16T04:12:00.000-08:00

Microsoft is not going to support its rival Google on the issue of Cyber attack. Microsoft told that we are always attacked by someone in the world and there is nothing new in this. So we will stay in China. Microsoft said it has not yet attacked by anyone in China.

Microsoft CEO Steve Ballmer told Reuters, "There are attacks every day. I don't think there was anything unusual, so I don't understand," "We're attacked every day from all parts of the world and I think everybody else is too. We didn't see anything out of the ordinary."

Car Loan Rate is Going Down

2010-01-08T01:20:00.000-08:00

ICICI Bank cut rates, Axis Bank follows with a 50-75 basis points cut. ICICI Bank had also told to cut interest rates on car loans to 9.75-10.5% from 10.5-11.5% and now have car loan rate reduced by 1% to 10.5%. he customer may now get a loan at around 9%. Yesterday, ICICI Bank had cut auto loan rates by 25-50 bps to 9.5-11.5 per cent.

Prime Minister Manmohan Singh confident to get 9-10 per cent economic growth

2010-01-08T01:07:00.000-08:00

Prime Minister Manmohan Singh adressing Pravasi Bhartiya Diwas celebrations to invite Indian diaspora to participate in the development of the country says he is confident that country will get 9-10 per cent economic growth. He also added that NRIs can vote soon in Indian elections:.

Combo Insurance - Medical Insurance and Life Insurance

2010-01-03T02:52:00.000-08:00

Insurance Regulatory and Development Authority (IRDA) releases guidelines for “Health and Life Combo”insurance policy. So in new year you can buy Life Insurance policy that will also cover Medical Insuranc. In about two months Combi Insurance product will be launched.

Investment in Gold : Insure your Money

2010-01-03T02:38:00.000-08:00

Gold is always one of the good options for the investment, because it insure your money as commodity. It is the safe asset to conserve your money. Indian investors who purchased gold in the early 80s have made money in this asset. But in the US, UK and even China, the actual value of gold is still below the prices of 1981. Even in 2008 as the value of prices are down Gold value up by 29 per cent. So in these hard time you can insure your money by investing in Gold.

Home loan demand will grow up in 2010

2010-01-03T01:48:00.000-08:00

The growth in housing loans was Rs 14,668 crore in August 2009, against Rs 29,872 crore in August 2008. As the economy is on the recovery track home loan demand will eexpected to grow. Some banks are till reducing their home loan rate to capture this opportunity like Bank of India have fixed rate for home loans 8 per cent upto Rs 30 lakhs and 8.25 per cent for loans above Rs 30-lakh. According to Macroeconomic and Monetary Developments the Reserve Bank of India's, Q2 Review 2009-10, as on August 28, 2009, the year-on-year growth in home loans was 5.4 per cent, against 12.4 per cent as on August 29, 2008.

In 2009-10 According to Managing Director, HDFC Ltd. the growth in disbursal's has been about 26 per cent for HDFC.

Payday Advance Loan

2010-01-02T22:11:00.000-08:00

When the bug of financial crunch strikes a person's life then no one other than a payday advance loan can help the person to overcome this situation. Whenever there are uninvited expenses before you that are not a part of your monthly budget it becomes really difficult to adjust these expenses. A service class person has a fixed budget within which all the financial things have to be managed. Coming across any extra expense simply shaken the entire budget. It becomes impossible for a person to meet all the financial needs within a small monthly income. Keeping these needs of a human being in mind, loan industry has come up with payday advance loan scheme that gives advance money to a person to meet the daily needs. A person can pay back the loan on next payday without any delay or failure. Payday Loans

NRI Real Estate Investment

2010-01-02T08:12:00.000-08:00

NRI can buy house/flat for residence by taking loan from banks. Non-resident Indians can acquire loan with certain conditions. Repayment of the loan should be made within a period of 15 years.

NRIs can do direct investments in India with 24% scheme/40% scheme/100% scheme.

NRI Real Estate Investment

Debt Consolidation Loans for Tenants

2009-12-28T22:23:00.000-08:00

Now Tenants can enjoy the luxuries of life. Owning a home and seeking a loan is easier as debt consolidation loans for tenants. Debt consolidation loans for tenants are just meant for those who don’t own a home. You get competitive interest rates, enjoy speedy processing time, face less documentation, and get exposed to various unsecured loan products as well.

Personal Finance News UK

Payday Loans No Faxing Fulfill Your short term cash requirements

2009-12-28T22:11:00.000-08:00

The urgent cash requirement may arise in the middle of the month like sudden medical expenses, unavoidable bills etc, at this time we require to make the proper arrangement of necessary funds. in UK a majority of population opt out for payday loans, Payday loan No faxing is specifically formatted to cope up with the short term cash requirements.

Few points mentioned below for Payday loan No faxing:

• No faxing of documents is needed
• Your age must be 18 years or above
• You need to be employed from last 6 months
• You should have permanent residency and a valid bank account

No fax payday loans allow you to borrow money instantly for urgency. Payday loans No faxing cash advance loans are one of the most convenient forms of credit that is available to almost all customers.

Personal finance

Electric Indica within 12-14 months : Tata

2009-11-25T03:09:00.000-08:00

Tata is planning to launch Electric Indica in India and abroad within 12-14 months.

IPL is worth $1.65 billon : ‘hottest sports league' - Forbes

2009-11-25T02:58:00.000-08:00

Forbes called IPL the world’s ‘hottest sports league’ because it worth IPL is worth $1.65 billon now. IPL is growing into a global brand.

PSUs offer better salaries than private companies

2009-11-25T02:49:00.000-08:00

PSUs offer better salaries than private companies

US Insurance Fund went into deficit banking sector back to profit

2009-11-25T02:31:00.000-08:00

According to The Federal Deposit Insurance Corp. FDIC government insurance fund went into deficit for the first time since 1992. Bank and thrift earnings have improved.

Saving Scheme for Retiring Person of Public Sector Employees:

2009-11-24T03:40:00.000-08:00

Return of 9.5% payable half-yearly on 30th June and 31st December respectively.
Minimum Rs.1000/- and the maximum limitation is the amount equal to total retirement benefit.
Operated by retired PSU employees in his/her own name or with the spouse, jointly.
Maturity period is 3 years.
Tax free.

Schemes For Retiring Person

2009-11-24T03:36:00.000-08:00

Government Employees :
Return at the rate of 8% per annum.
The minimum investment is Rs.1000/- and maximum amount equal to the total retirement benefit.
Maturity period of this scheme is 3 years.
Scheme is tax free.

Tax Saving Schemes India

2009-11-24T03:24:00.000-08:00

Public Provident Fund (PPF)

Interest rate of 8% p.a.
The minimum investment limit is Rs. 500/- and maximum limitation is Rs. 70,000/-.
Operated - singly or jointly.
Maturity period of 15 years.

National Saving Schemes (NSC)

Operated singly, jointly
Interest rate 8%.
The minimum investment limitation of the scheme is Rs.100/- and with no upper limit.
Maturity period of 6 years.
It is transferable
Provision of loan on the basis of this scheme.

Kisan Vikas Patra (KVP)

8 years
There is a minimum investment limitation of Rs.100/- with no upper limit.
This scheme is available throughout the year.
operated either singly or jointly.
nomination is also available
No tax benefit

Post Office Scheme (POS)

It can be operated by either singly or jointly.
It is available throughout the year.
categories:

* Monthly Deposit
* Saving Deposit
* Time Deposit
* Recurring Deposit

Gold the safe place for your money

2009-11-24T03:00:00.000-08:00

As the financial markets down due to recession gold is rocking the market by gaining its prices. Gold is becoming hot place to invest.

China reported 600 metric tons of gold reserves at the end of June, or 1% of its total cash reserves. At today's prices, that's about $16 billion worth, or about 20 million ounces, less than half a percent of the estimated total gold in existence.

World's cheapest car in India at $2,467

2009-11-24T02:30:00.000-08:00

The Indian automaker have launched its $2,467 vehicle in 2008, TATA NANO.

600-cubic-centimeter engine
33-horsepower engine
80 mph
Tata to produce 80,000 Nano units before March 2010

Big Three Economies in 2050 will be China, U.S. and India

2009-11-24T02:21:00.000-08:00

Brazil, Russia, India and China are the 4 economies that will shine in 2050. If you are the kind of investor then do one-third of that allocation with a BRIC fund and invest large percentage of assets invested in emerging markets. Japan and the United States will remain in the G6, but Japan's economy will be overtaken by India's by 2032. China will supplant the U.S. as the world's top economy by 2041. BRIC countries will have knocked other G6 countries. Big Three economies in 2050 will be China, the U.S. and India, in that order, followed by three much smaller siblings, Japan, Brazil and Russia.
More

Joint Home Loan to Co-Borrowers

2009-11-21T21:54:00.000-08:00

Housing loan makes eligible for tax rebates for co-borrowers. Joint home loan can only be availed by a minimum of two and maximum of six applicants. A joint housing loan is given to married couples or close blood relatives like parent and child. Some banks allow brothers to take a joint home loan provided they will both be co-owners of the property. More Info