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| Tuesday, May 22, 2007 |
| Tips to choose the Best Insurance Company |
Insurance offers peace of mind to millions of families and businesses. It's not always required but good to have if you can afford it. Not only it keeps you insured but also help you save your taxable money as you don't need to pay tax on insurance (Its like two Birds from a single Bullet!!!). To sum it all up, there are plenty of good insurance companies and some bad eggs as well. If you stay clear of the bad companies and get your polices with companies you like and trust, you should be in good hands. Labels: Insurance, Insurance Company, Policy. |
posted by Hosni Hussain @ 1:01 AM  |
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| Thursday, May 17, 2007 |
| Credit Card Debt Management |
Do you want help to talk to your creditors on your behalf to reduce payments, stop harassing calls of creditors, reduce interest rates, and eliminate late payment penalties and more? Help is at hand through the credit card debt management program. Such debt consolidation programs refer to an amalgamation of various services, all targeting to bring down your debt amount by consolidating them into one.
An array of diverse debt reduction services
Debt consolidation companies have devised a special program that aims to curb debt amounts resulting from usage of multiple cards. With a credit card debt management program, you can have more time to enjoy as it relieves your tension by reducing debts and your paperwork. For a reduction in debts within a lesser time than what you can achieve by yourself, contact a credit card debt consolidation company as it will assure you that it would stabilize your financial condition within a stipulated timeframe. Ask your credit counselor how much time is required for resolving your credit card debt dilemma. A genuine counselor will not hesitate to mention the time.
There are a multitude of advantages of using a credit card debt management program, which can be the following –
All monthly payments are now consolidated into one
With this debt management program, you are not required to file for bankruptcy.
You can put an end to all the harassing calls from creditors.
You can get a professional for negotiating with your creditors to come to a debt settlement on your behalf.
You can bring your debt account to current as they re-age the account, so now you have no more liability of an unpaid debt account.
With the help of a credit card debt consolidation company, you can also eradicate late fees charged by credit card organizations.
Once the credit counselors study all your papers, they prepare a realistic payment model, which will be most feasible for you. To prepare this, they directly contact your creditors as they have a wide network of the most common creditors in the market. With credit card debt consolidation services, they reduce principal debt amount, credit card interest rates, over the limit charges, and other penalties charged by credit card organizations. Most of the creditors wish to ally with these credit card debt management companies as they get a fair portion of their credited money with the help of credit counselors, otherwise, consumers file bankruptcy where creditors lose the entire portion of the amount.Labels: credit card, debt, payoff |
| posted by Hussain @ 2:13 AM |
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Home |
| Tuesday, April 17, 2007 |
| Secured Home Loans |
When you are looking for loans, what do you consider first? Well you look forward to get the loan at low interest rate, low monthly repayment, and stretchable loan term. All these come along with secured home loan. Then you must go for it without wasting much of your time.
The amount of secured home loans can be utilized for home improvements, clearing debts, paying for expenses towards wedding, education etc. No, matter how you spend it! Secured home loans are friend–in-need loans. As you get the loan at lower interest rate as a result the repayment amount of each month comes lowered which helps you spend the amount in other expenditures. The term is stretchable as per your convenience as the collateral gives space in doing the same.
Always it is advisable to stick to the repayment term as it proves your credibility in the loan market. However, in case you miss the repayments then the lender may repossess the property that is an avoidable situation. Nevertheless, it is better to look before you leap! Take the secured home loans as per your repayable capacity.
Bad credit may occur due to late payments, CCJs, IVA, arrears, bankruptcy etc. Bad credit holders when opt for secured home loans. They may be charged with increased rate of interest. However, with the home as collateral the interest rate comes comparatively low.
When you want secured home loans at faster and quicker speed. Then there is no second thought other than going for online option. Here you get a chance to compare various loan quotes, repayable term, interest rate etc. Just you fill an application form and the secured home loan is at your service.
Thus, secured home loans are taken easily. The loan taken is used to make your living comfortable and help you combat the need with in no time.Labels: flexible loans, Home Loan, repayment, save tax |
| posted by Hussain @ 3:31 PM |
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Home |
| Saturday, April 7, 2007 |
| India Rupee on High |
The Indian rupee has strengthened, catching by surprise both importers and exporters. While it brings good cheer for one, the other is worried over the implications of the currency strengthening against the US dollar to Rs 42.83 (highest since 1 June 1999) in early trade on Wednesday, before closing at 43.065/075—a rise of 2.7 per cent in three months.
This was the strongest the rupee has been in eight years and carries significant consequences if it remains on the current high. According to analysts, unless the Reserve Bank of India steps in, they say it is unlikely, the rupee is going to remain strong.
They are also indicating that since the Reserve Bank of India has already hiked the repo rate three times in the year, there is a liquidity crunch. Till the time this situation is not eased, and money becomes available cheaply again, the rupee will carry on with its strong performance.
That means that net importers will gain a bonanza and the exporters will feel the pinch as their profits are eroded.
Exporters, who get paid in dollars, which they bring back to India and are paid the current rates will see them getting lesser rupees for each unit of the US currency. But those who are importing will see the value of goods that they are bringing into India fall, simply because they will pay less rupees for the purchases in dollar terms. In fact, importers like oil refiners actually went on a dollar buying binge.
The sectors likely to be affected positively are importers in the oil & gas industry, trading, and diamonds; the negative impact will be severe on software sector and pharma. However, since oil & gas is also an exporter, they will be affected both ways.
On Thursday, the rupee was trading at Rs 43.05 to the dollar.Labels: Foreign Exchange |
| posted by Hussain @ 6:34 AM |
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Home |
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| Public Provident fund |
The Public Provident Fund (PPF) is probably the most popular of all the tax-saving schemes. Under Section 88 of the Income Tax Act, you can invest up to Rs 70,000 of your income to claim a rebate of upto 30 per cent depending upon the rate of rebate applicable in your case. The PPF account may be opened at any branch of the State Bank of India (SBI) and its subsidiaries, a few branches of the other nationalised banks, and all head post offices. The minimum deposit is Rs 500.
The Public Provident Fund (PPF) is a great tax-saver, but you should acquaint yourself with the instrument before you park money in it. For instance, did you know that you need a minimum investment of Rs 500 to keep a PPF account alive, and the maximum you could deposit in a financial year is Rs 70,000?
Who can invest, how and where?
Just about anyone can open a PPF account. You can open an account in your own name or in the name of a minor if you are the guardian. You can even open an account on behalf of a Hindu Undivided Family (HUF) using its income. The account can be opened even if you subscribe to a General Provident Fund or the Employees’ Provident Fund.
However, be warned: you can have only one PPF account in your name. If at any point it is detected that you have two accounts, the second account that you have opened will be closed, and you will be refunded only the principal, not the interest. Again, two adults cannot open a joint account. The account will have to be opened in only one person’s name; of course, the person who opens an account is free to appoint nominees.
A PPF account can be opened with a minimum deposit of Rs 500 at any branch of the State Bank of India or branches of its associated banks like the State Bank of Mysore or Hyderabad. The account can also be opened at the branches of a few nationalised like the Bank of India, Central Bank of India and Bank of Baroda, and at any head post office or general post office. After opening an account you get a pass book, which will be used as a record for all your deposits, interest accruals, withdrawals and loans.
For how long can you maintain your PPF account?
On paper, your PPF account must be maintained for a 15-year period. However, the tenure actually works out to 16 years, since you are allowed to make your last contribution in the 16th financial year. Even if you make a deposit on the last day of your account (that is, the day it is due to mature), you get a tax rebate, even though no interest accrues on the deposit.
Can you continue your account after the 15-year period?
Sure, but only in a block of five years at a time with no upper limit.
Will you have to continue investing after extending your account?
No. If you merely retain your balance, it will earn 8 per cent interest per annum till withdrawal.
What if you want to withdraw money during the extension period?
After the initial 15-year period, if you choose to extend the account and just maintain the balance, you can withdraw the entire sum in a lumpsum or in instalments. If you withdraw the money in instalments, you cannot make more than one withdrawal a year.
If you continue to deposit money in your account, you can withdraw up to 60 per cent of the balance to your credit at the beginning of each extended period (block of five years). The money can be withdrawn in a lumpsum. If you choose to withdraw it in instalments, you cannot make more than one withdrawal a year.
Do you have to notify the bank about the extension?
Yes. The Central Board of Direct Taxes (CBDT) has stipulated that after 15 years, the tax benefits under Section 88 will not accrue unless you choose to continue the account and deposit money in it.
How much money do you have to put into your PPF account?
Any amount not less than Rs 500 and not exceeding Rs 70,000 in a financial year payable in lumpsum or instalments in multiples of Rs 5. Not more than 12 instalments can be deposited in a year. However, unlike in a bank recurring deposit, you don’t need to deposit the same amount every month.
How much interest do you earn?
The interest rate is fixed periodically by the government. For now, it is 8 per cent compounded annually. The interest for a month is calculated on the lowest balance between the close of the fifth day and the end of the month, and is credited to the account at the end of each year. So, to get the maximum returns, make deposits in the first few days of the month.
How do you withdraw money from your account?
The entire balance can be withdrawn on maturity, that is, after 15 years of the close of the financial year in which you opened the account. Of course, you can choose to continue the account beyond 15 years, but you will have to do so in blocks of five years.
Before maturity, you can make withdrawals within limits: from the seventh financial year, you can make one withdrawal every year of an amount not exceeding 50 per cent of the balance at the end of the fourth year or the year immediately preceding the withdrawal, whichever is lower. If, however, you have taken a loan, the amount you are eligible to withdraw will be reduced by the amount of loan you have taken.
If you choose to continue the account after 15 years and make deposits, you can withdraw up to 60 per cent of the balance to your credit at the beginning of each extended period (block of five years). The money can be withdrawn in a lumpsum. If you choose to withdraw it in instalments, you cannot make more than one withdrawal a year.
You can even retain the balance after 15 years without depositing any more money and without intimating the bank. The balance to your credit continues to earn interest till such time as you withdraw it. Of course, you can continue to make one withdrawal a year till you withdraw the entire amount.
Can you take a loan?
Yes, even before becoming eligible for a withdrawal in the seventh year, you can take a loan from the third year onwards. However, you cannot take a loan after you become eligible for the withdrawal facility. The loan amount should not exceed 25 per cent of the amount to your credit at the end of the financial year immediately proceeding the year in which you apply for the loan.
The loan is repayable in a maximum of 36 instalments at an interest rate of 1 per cent per annum. If you are unable to repay the entire loan in 36 months, you will have to pay interest on the deficit. Of course, you will not be eligible for a fresh loan until you repay the first one with interest.
Tax benefits, nominations, minors...
Benefits. Deposits (even those in the name of your spouse or minor children) are eligible for a tax rebate of upto 30 per cent under Section 88 of the Income Tax Act. What’s more, interest accruals and withdrawals are exempt from income tax, and the balance in your account is exempt from wealth tax. Further, the balance in your PPF account cannot be attached by the courts in the event of any debt liability.
Nomination. You can appoint one or more nominees to receive the money in your account in the event of your death. If you were to die before your account matures, your nominees get the money in your account after the initial lock-in period of 15 years. If you are in a transferable job, your can transfer your account to any scheduled bank or post office in the country.
Retirement planning. A PPF account is the most effective tax-saving vehicle for those sunset years which could give you amazing returns, particularly when you consider that there's at no risk at all! When used as an instrument for retirement planning, a PPF account can provide a really big corpus at the time of retirement.
Pluses and minuses of a PPF account
A PPF account has more benefits than drawbacks…
Pluses
* Your money is absolutely safe.
* You have the flexibility of contributing varying amounts of between Rs 500 and Rs 70,000 a year, depending on your financial situation. The account can be kept ‘alive’ by depositing just Rs 500 a year.
* You can even open an account on behalf of a minor if you are the guardian, and claim the tax benefits for yourself.
* The income from PPF is fully exempt from income tax.
Minuses
* The tenure of the PPF scheme is 15 years, which makes it less attractive for older people.
* Although partial withdrawal is allowed from the seventh year, it is limited to 50 per cent of the balance in your account at the end of the fourth year.
What should you do?
* Opening a PPF account pays. Open one even if you are not a taxpayer, and keep it alive by depositing at least Rs 500 a year. Step up your contributions towards maturity for a bigger savings corpus.
* Subject to the withdrawal stipulations, you can withdraw as and when you want and utilise the money for household expenses or other emergencies. The money can then be redeposited (subject to a maximum deposit of Rs 70,000 a year) using your taxable income for the year. This gives you a tax rebate without any additional cash outflow. Interesting, isn’t it?
* A PPF account can be opened in the name of your minor child or spouse if you expect their income will soon be taxable. They can then make withdrawals and redeposit the money from their taxable income to claim a rebate, without any additional cash outflow.
* You can contribute an aggregate of up to Rs 70,000 a year to a PPF account in the name of your child (minor or major) to claim tax benefits for yourself. Subsequently, as long as the child is a minor, you can make withdrawals as per the PPF rules (from the seventh year onwards), and invest the money in pure growth schemes of mutual funds. Redeem them when the child attains the majority; the capital gains arising out of the sale will be taxable in your child’s hands, which reduces your own tax liability.Labels: 80CC, Bank, Savings, Taxes |
| posted by Hussain @ 6:13 AM |
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