Dividend reinvestment is not a constructive transfer

I have a query related to Sec. 80C. I want to know whether investing in a company fixed deposit for five years or more is an eligible investment under Sec. 80C? I know that investing in a bank FD or post office term deposit etc.

DTC is detrimental to the small tax payer

I had opened my PPF account on 28/03/1989 for 15 years, which was further extended for five years.. Now this extended term of five years has also been completed on March 31,2009.

It may be advisable to avoid PPF unless rules are modified

In the sixth schedule, some income is excluded for the tax purpose in the income of individual and it has been mentioned that "income from mutual fund is exempted". Please confirm if this is true in case of equity mutual funds.

ELSS investments in the name of child are not eligible for the benefit of deduction

I am given to understand that if the EPF contribution by employer is less than 12%, the same would not be included in the employee’s earning for calculation of income tax.

Avoid PPF until rules are modified

The addition of the amount of Rs. 52,000 to the PPF account, being the contribution and the interest earned on it, during FY 2011-12, would certainly be subjected to EET method.

FMPs back by popular demand

Many a times, we have seen actors returning to screen under popular demand of their fans. Particularly popular on television, this is a tried and tested method of enhancing the actor’s as well the show’s popularity.

Any diversion of income by overriding title is taxable

On the death of a subscriber, the balance in the PPF account is paid on demand to his nominee or successor. However, the balance, if not withdrawn, continues to earn tax-free interest. No partial withdrawals are permitted.

Liquid funds in jeopardy

Liquid funds first started to bleed in October 2008. Actually, it wasn’t even a small cut, it was a gaping wound. And now, almost a year later, liquid funds seem to be dying a slow death. This fact is apparent from the minuscule returns that these funds have generated in the past couple of quarters.

In India inheritance or estate duty doesn’t apply

Short-term loss can be off set against long-term gain or short-term gain whereas long-term loss can only be set-off against taxable long-term gain. Since you are free to set-off both long-term gain as well as short-term gain against the short-term loss...

Cost of property will be indexed to adjust for inflation

From the information provided, it seems that the house property is purchased in joint names and the loan too is being applied for jointly. It is not clear whether the equity portion is also being contributed equally or only the husband is putting in that amount.

The lure of the new

It doesn’t require a high amount of research to understand that a contemporary consumer prefers to purchase something that is new, or ‘latest’ – as a new offering is often referred to. Be it clothes, electronic gadgets, cars, or even vacation locations and restaurants, we always look to pick something that is new.

In the wonderland of investments

In a number of inquiries regarding PPF A/C, you have replied that after extending a PPF A/C for five years, one can withdraw 60% of amount lying in the credit of depositor at the end of original period.

For ESOPs the date for allotment or transfer is important

The new law shall apply only in cases where the allotment or transfer of shares is made on or after April 1, 2009. In other words, if allotment is made prior to April 1, 2009, the same continues to attract FBT.

Capital gains are always computed with indexation

For a retired person, is it necessary to pay quarterly advance tax on the earnings out of investments in the FDs, securities, postal schemes, etc. or can he pay yearly tax once only in March of every year?

Construct your own fund

Of all the things that one must learn to become a seasoned investor, the hardest is the ability to take losses. Periodic ups and downs are part of the equity investment process, whether it’s direct investment in stocks, or through equity funds.

New assessment procedure for foreign companies

Foreign companies and those assessees who are subject to transfer pricing regulations (eligible assessees) will be subject to a new procedure for assessment with effect from October 1, 2009.

'US large cap stocks, bonds are ripe for Indian investors'

Carlos Asilis, the newly appointed chief equity strategist of financial services firm Prabhudas Lilladher, has a chequered career. A former chief US investment strategist at JP Morgan Chase...

'Investors shouldn't overdo it in a bullish market and under do it in a bearish mkt'

Kenneth Andrade, CIO, IDFC Asset Management, spoke with Abhay Rao of the Financial Express about...

Section 80E provides for deduction on higher education loans

Now additional fields of studies (including vocational studies) pursued after passing the Senior Secondary Examination ..

10% surcharge has been discontinued for all categories of taxpayers except corporates

The finance minister mentioned in his speech that the 10% surcharge has been eliminated. Has this been eliminated only for individuals or also for other categories of taxpayers such as HUFs, companies,

‘Investors in the country are looking for independence’

Hrishikesh Parandekar ,CEO, Karvy Private Wealth spoke with Abhay Rao of the Financial Express about the wealth management business...

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