Save tax, Invest in Infrastructure Bonds

In this year’s budget finance minister has not reduced only the tax rates but also given an additional exemption i.e. Deduction from Income for Investment in Infrastructure bond (Section 80CCF of the Income-tax Act).

Few years back there was a provision for deduction for investment in infrastructure bond, which was later on withdrawn. But now it has been reinstated again. Traditionally, Infrastructure bond has been issued in the month of January and February i.e. towards financial year-end. This year Infrastructure Finance Corporation of India (IFCI) has come out with its issue of infrastructure bonds now. The rate of Interest is fixed at 7.85 % for Buyback after the 5 year lock in period, with Cumulative and Non-cumulative option, and 7.95 % for Non-Buyback with Cumulative and Non-cumulative option. The investment allows benefit of deduction of income to the extent of Rs 20,000 in a year u/s 80CCF of the Income Tax Act. This is in addition to deduction of Rs 100,000 allowed u/s 80C.

The rate of interest as per government’s directive should not exceed the yield on government securities of 10-year maturities, prevailing at the end of the month that precedes such issue.

Points that need to be kept in mind before investing:

• Interest on these bonds are taxable
• Capital gains if any on sale of bonds after 5 years is taxable with no indexation benefit
• These bonds are unsecured, there by increasing the risk of loss
• The bond can be pledged or hypothecated for obtaining loans from banks after the lock-in period.

Other institutions like LIC, IDFC, and other Non-banking Finance Companies, which may be notified by the government, will also be authorized to issue infrastructure bonds the financial year 2010-11. LIC, which normally comes out with interesting policies each year, may also decide to raise funds. Since LIC is an insurer, we may not be surprised if LIC offer life cover along with the bonds.

The interest rate for issues that may come out later in the year may vary, and accordingly the total benefits arising on account of post tax yield.

We have been witnessing a rise in interest rates since the last policy meet of the RBI. Further the sensex and nifty have also been steadily rising. The RBI may, in order to remove excess liquidity, increase the base rates as seen in the past.

Smart Investment tips - I

Whether we like it or not, Money continues to be the main motivator for most of the people. Since last 3 decades, stock market is one of the most promised and successful money-spinner for investors. Looking to the revived market in last week, retail investor’s confidence has grown and many started rethinking about investing again in the market. Many are still puzzled how to be careful and still earn money in the stock market. Here are few tips for investor.


New Investment Option: Commodity - Rare earth metal - Lithium

1.   Keep investment and trading strategy different

Understand the difference between investment and trading. Investment should always have long term strategy and potential growth oriented stocks. For trading, we need to listen to market information and keep eye on momentum stocks.

2.   Keep a long term view

In case of investment, you need to keep long term view. On immediate bases of short term cases, prices may get volatile but it should not affect the confidence of investor. Fundamentally strong and growth oriented shares normally gives 12 to 15 % annual return in long term.

3.   Trade at fair interval of time

Investor who is trading show not think about daily or weekly trading. They should trade at interval of 2 – 3 months by selecting good shares and proper exit limit. 8 out of 10 times, market follows the seasonal pattern e.g. rises during the annual result declaration season etc. If investor invests according to the patterns and market sentiment for short to medium term, he can earn profit.

4.   Make small but regular investment

For investor, systematic investment plan is the best possible option. Small but regular investment return can build good wealth in long term. Investor should pick the leading mutual fund and start monthly SIP. He should break his total monthly investment into 2 to 4 parts and invest in different mutual funds. SIP has given 15 – 17 % annual return in last two decades.

5.   Exit at right time

Good investor knows when to exit. In case of trading its more important to know your stop loss. Don’t hesitate booking profit or even loss. Timely exit is the key to any investment. In case of investments, investor should make an exit while he meets the target.

6.   Avoid emotional decision

In case of investment or trading, don’t go by emotions. Loved company or advice from a relative may not bring profit. Earlier profitable stock doesn’t mean the future gain, every stock has its peak and it can’t go beyond that. It’s the fundamental and profitability of the company can make a real good profit for you.

 So, investing and earn profit with cautious approach.

Now File Your Banking Complaints By SMS

From shantytowns to remote villages, mobile phones are being used by masses. Mobile phones have clearly had a revolutionary impact on many lives.

The country’s largest lender State Bank of India has now come up with first of its kind innovative service for its mobile based customer to file complaints via SMS called ‘SMS Unhappy’ on all India basis.

In order to file a complaint, the customer has to send an SMS bearing the text ‘UNHAPPY’ to the number 8008202020.

A customer care executive will then soon call the customer and discuss the issue being faced and the actions to be taken thereof.

Once the corrective action has been taken, the customer’s nod will be taken by the bank branch and then the grievance cell will update their data.

The State Bank of India is the 29th most reputed company in the world according to Forbes. Also SBI is the only bank to get featured in the coveted “top 10 brands of India” list in an annual survey conducted by Brand Finance and The Economic Times in 2010.

which bank offers the Best education loan at low interest for post graduation in india? most helpful

Looking for the post graduation nice idea..my brother also took the loan to complete his B.E from Axis bank last month but if you want check all necessary information about education loan here like: eligibility criteria, tenure period, interest rates and also the hidden costs of almost every Indian bank... 


another one is Just check out the all new ICICI student loan scheme aticicibank.com  i think it is also help full 

and provide lon in low interest
and next one i think  sbi bank is best because they also offer very low interest rates!


so guys here is my 3 best bank names ,guys
also tell your opinion
 which bank are best for the education purpose
at low interest

Best Bank Loans in India of 2011

Hi frends
Here is the best banks which provides best deal according to loan

ABN AMRO Loans Allahabad Bank Loans Andhra Bank Loans
Axis Bank Loans
Bank of America Loans Bank of India Homeloans Bank of India Loans Bank of IndiaPersonal Loan Canara Bank Loans Catholic Syrian Bank Loans Ceylon Bank Loans Citibank Loans Corporation Bank Loans DBS Bank ltd Loans Dena Bank Loans Deutsche Bank Loans Federal Bank Home Loan HDFC Home Loans HDFC Personal Loan ICICI Home Loans IDBI Bank Home Loan Indian Bank Loans Indian Overseas Bank Loans ING Vysya Bank Ltd Loans Jammu Kashmir Bank Loans Karnataka Bank Loans Karur Vysya Bank Limited Loans Kotak Mahindra Bank Loans Lakshmi Vilas Bank Loans Mizuho Corporate Bank Loans Nainital Bank Ltd Loans Oriental Bank of Commerce Loans Punjab and Sind Bank Loans Punjab National Bank Home Loan Ratnakar Bank Loans SBI Commercial And International Bikaner and Jaipur Loans 
State Bank of Hyderabad Loans State 
Bank of Mysore Loans 

State Bank of Patiala Loans 
State Bank of Travancore Loans 
Syndicate Bank home Loan 
Tamilnad Mercantile Bank Loans
UBI Loans 
UCO Bank Loans 
United Bank of India 
Loans Vijaya Bank Loans

Learn Stock Market – Basics

In today’s world its really common to listen people investing in Shares/Stocks, but real question is: What are these Shares/Stocks?
Well what I understand, Shares/Stocks are the units of partnership one holds in the company.
Take a look at this example:


Suppose you need to start a company, say TechPatel Power Ltd. which requires Rs.100 crore. But you have only Rs.25 crore. Then you will be left with 2 options:
1. Borrow Rs.75 crore from Bank or other Financial Institution.
or
2. Sell shares worth Rs.75 crore to Public with an Public Issue (IPO).
In the above first case, if you borrow Rs.75 crore from Bank then they will charge you a hefty interest, Which can slow your business. On the other hand if you Borrow the same amount from public by selling your stake, you dont have to pay any interest. The amount you needed was Rs.100 crore. So if u decide the basic price of one share Rs.10 then total shares of your company will be 10 crore shares, but you sell some of them to public for Rs.75 crore and the rest will be your holding. This process goes very complex also known as IPO(Initial Public Offering). So this is the Win-Win game for both, You and Public, because you have got the required amount to start your company and the public has the shares of your company.
Now you can start your company and start doing business. Which will grow in future, so you and public will earn good money in future. Hence Win-Win game for both.