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Dear all

I heard with the implementation of DTC or its recommendations in Budget 2012, HRA benefit for IT exemptions will be removed.

If it is true, it will impact salaried employees a lot. This will impact even the Zero Tax Slab is increased to 3 Lakh.

If this is true, it will be a huge blow to the people staying in rented houses. They cant even get the benefit of Housing Loan. How far the Govt proposed actions are justified, while allowing tax benefit to Housing Loans and removal of HRA for IT?

Can you share your idea, How far Removal of HRA benefit will impact the Income Tax.

Regards
KK Babu

FYI,

http://timesofindia.indiatimes.com/india/Tax-relief-slab-may-be-raised-to-Rs-3-lakh/articleshow/11829610.cms

Dear Sir,

I wish to describe here my present investment details as follws :

[A] Insurance :

Sl.No. Policy Name Start Date Annual
Premium (Rs)
1 Birla Sunlife – Freedom 58 – Super 20 28/03/2010 15,000
2 ICICI Prudential – Assure Wealth Plus 15/02/2010 25,000
3 ICICI Prudential – Life Time Super Pension 08/02/2008 12,000
4 LIC – Jeevan Saral – With Profit 04/01/2011 24,500

[B] SIP :

Sl.No. Fund Name Start Date Monthly
Investment (Rs.)
1 DSP BLACK ROCK TOP 100 14/06/2011 1000
2 HDFC Prudential Fund – Growth 16/06/2011 1000
3 Reliance Regular Savings Fund – Growth Option 31/12/2010 1000
4 HDFC Top 200 Fund – Growth 28/12/2010 1000
5 SBI Magnum Fund – Umbrella Contra – Growth 23/09/2008 500
6 SBI Magnum Global Fund – Growth 23/09/2008 500

I would like to know, whether my investement portfolio is correct or not as per my present income, age & future liability. If not, request you to kindly advice.

My personal introductions are hereunder:

Name : SHISHIR KUMAR SHARMA
Age : 40 Years
Yearly Income : Rs. 5,00,000/-
Profession : Working in a Ltd. Company at Pune.
Other Family Members : My wife & a son (2 years age).

Thanks & Regards,
Shishir Kumar Sharma

hey guys,I am 23 yrs old and new to investments,etc. I need to know which is the best LIC policy for me? I will be able to pay a premium of upto Rs.30000/- The policy I am looking for should be a death cover + returns plan.

If you buy IDFC Bonds, for every 5000 invested you will be paid 11840 amount at the end of 10 years at 9% ROI.
As you know, the maturity amount is taxable. Hence, the net amount you would be getting would be 10620.48 OR 9400.96 OR 8181.44 depending on whether you fall under 10% OR 20% OR 30% bracket (with 3% educational Cess) respectively at the time of maturity.
Assume you have NOT invested 5000 this year, then you will have 4485 (@10%) OR 3970 (@20%) OR 3455 (@30%) in hand to invest after deducting tax + 3% cess.
Assume that you buy IDFC stocks @ 110 price. Then You would have 40 OR 36 OR 31 IDFC shares depending on the amount in hand as described above.
So if you are in 10% slab at the time of maturity, IDFC need to shoot up at the following rate to recover 10620:
You invest 4485 (@ 10%)-> get 40 shares -> For 10620, share value should be 265.5
You invest 3970 (@ 20%)-> get 36 shares -> For 10620, share value should be 295
You invest 3455 (@ 30%)-> get 31 shares -> For 10620, share value should be 342.58
So if you are in 20% slab at the time of maturity, IDFC need to shoot up at the following rate to recover 9400.96:
You invest 4485 (@ 10%)-> get 40 shares -> For 9400.96, share value should be 235.02
You invest 3970 (@ 20%)-> get 36 shares -> For 9400.96, share value should be 261.14
You invest 3455 (@ 30%)-> get 31 shares -> For 9400.96, share value should be 303.25
So if you are in 30% slab at the time of maturity, IDFC need to shoot up at the following rate to recover 8181.44:
You invest 4485 (@ 10%)-> get 40 shares -> For 8181.44, share value should be 204.53
You invest 3970 (@ 20%)-> get 36 shares -> For 8181.44, share value should be 227.26
You invest 3455 (@ 30%)-> get 31 shares -> For 8181.44, share value should be 263.91
Kindly let me know if my calculations are correct.
Assuming my calculations are correct, it does not make sense to invest in bonds if you are currently in 10% and 20% slab regardless of whatever slab you will be in at the time of maturity. This is because shares are likely to easily beat the above values within a span of 10 years.
However, if you are in 30 % slab it somewhat makes sense to invest in Bonds that too only if you are likely to be in lower tax slab after 10 years.
Please let me know your views and feedback.

Hi guys,
Indian govt has decided to allow FDI in multi-brand retail upto 51 percent.This means there will be lots of opportunities for logistics and supply chain management sector.

query1:under this current scenario pls suggest some good company in logistics and supply chain management sector which is listed in stock market.I think the value of the companies stock in these sectors will only grow bcoz of this decision by govt

query2:i dont fully understand the term FDI in retail,bcoz there are already many foreign companies like dominos and pizza hut set up in india.does this mean food resturant and hotels are exempt from this rule.pls explain this rule

Recently the MIS (Post office monthly saving scheme) bonus of 5% on maturity has been scrapped ,but is it scrapped for existing investors also or just for new investors ?

I think it should be for new only , because then its unfair to existing one’s . Can anyone confirm this ?

Manish

http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/uti-cautions-investors-as-etf-gains-150-in-a-month-traders-could-be-manipulating-shares/articleshow/10647297.cms

If this is the case for ETF how should we go low price equity investment…ETF is considered to be one of low prices stuff

I watch the business news channels quite frequently (for entertainment, of course). It always surprises me when the anchors and the experts say that the Retail Investors have not participated or joined in. When the markets are rising, they (retail investors) remain on the sidelines since they have missed the bus. When the markets are falling, they, again, remain on the sidelines for fear of losing money in such a bad environement, etc.

Is there a remedy for that? Why do retail investors do that? And is this an Indian phenomenon or is it worldwide?

Please share your thoughts.

Hi,

For the last 6 years, I have regularly invested in MF via SIP and few lumpsump during recession times.

Total balance is around 46 Lakh now.  I am 32. 

I am thinking should I stop contributing ( contributing 40K per month ) as this amount with 12% in 20 years can grow to 4.4 Crores which should be fine for a Middle Class Retirement..

Let me know