Smart Money: Annuity income from reverse mortgage made tax-free

Updated: Nov 2 2013, 02:31am hrs
Annuity income from reverse mortgage made tax-free

Senior citizens can now mortgage their house to earn a monthly income without paying any tax. The government has made annuity income from reverse mortgage tax-free and even scrapped the restriction of a 20-year annuity payment. It has also allowed insurance companies to participate in the scheme. The amount of annuity will depend on the bank or the life insurer.

Chola MS launches family floater health insurance

The policy offers a combination of health and personal accident covers. The premium for a family of four (two adults and two children) is around R5,005 for a sum insured of R3 lakh. There are no sub-limits for 30 days prior- and 60 days post-hospitalisation expenses and the policy covers 141 day-care procedures, which require less than 24 hours hospitalisation. The entry age is up to 65 years with medical checkup and up to 55 years without. It offers lifetime renewal and exemption under Section 80(D) of the I-T Act up to R15,000.

Sundaram MF declares dividend on mid-cap scheme

Sundaram Mutual has declared a dividend of R1 on the face value of R10 per unit for its flagship scheme, Sundaram Select Mid Cap. The record date for Sundaram Select Midcap dividend is October 25 and this 10% dividend is its 16th from the fund.

BNP Paribas MF declares dividend on direct plan

BNP Paribas (MF) has declared a dividend of R0.08 per unit on the face value of R10 per unit under BNP Paribas Dividend Yield Fund & BNP Paribas Dividend Yield Fund-direct plan. The record date for dividend is October 28. The investment objective of the scheme is to generate long-term capital growth from a portfolio of equity and equity-related securities, primarily high-dividend yield stocks.

UTI MF declares dividend on Mastershare plan

UTI Mastershare Unit Scheme has declared tax-free dividend of 22.5%, or R2.25 per unit, on face value of R10 under the dividend option-existing plan and dividend option-direct plan. The record date for the dividend is October 29.

HDFC MF declares dividend on fixed-maturity plan

HDFC Fund has declared dividend under the normal dividend option and quarterly dividend option of HDFC FMP 370D October 2012, which is a closed-ended income scheme. The investment objective of the scheme is to generate income through investments in debt/money market instruments and government securities maturing on or before the maturity date of the respective plan.