Friday, December 19, 2014

Fine prints in a car insurance policy

Given that very few people read the thick document that comes attached with a typical car insurance policy, here is a summary of the salient clauses in the same.

Risks covered
The car is insured against loss or damage due to fire, explosion, lightning,
self ignition, theft, burglary, riots, strike, floods, earthquake, accidents, malicious act, terrorism, landslide and while in transit. 

Wednesday, December 17, 2014

Permanent Account Number (PAN) details you may not know

As you would be aware, Permanent Account Number or PAN is a unique ten-digit alphanumeric number issued by the Income Tax Department.

It enables linking of all the necessary transactions of a particular assessee e.g. tax payments, TDS / TCS credits, returns of income, specified transactions and more.

You must have a PAN as it is mandatory for all transactions with the IT Dept.

Monday, December 15, 2014

Health policy will not pay all your hospitalization expenses

Most people experience an agonizing shock when they receive their hospitalization bill.

Of course, gigantic medical bills even for minor and insignificant ailments can be quite horrifying.

However, the bigger blow comes when your health insurance policy pays only a part of total hospital bill; leaving you to bear the burden of the balance amount, which itself may add up to a neat sum. 

Friday, December 12, 2014

Gold jewellery as an investment is a bad idea indeed

This article is likely to make me very unpopular with the womenfolk in this country.

Because, I am of opinion that one of their centuries old custom — of buying gold jewellery as an investment OR even for their children's marriage many years away — is inherently a bad idea.

Of course, I fully endorse their practice of buying gold systematically from time to time. My only objection is to buying it in the form of jewellery... unless they intend to wear it themselves.

Thursday, December 11, 2014

How to earn tax-free risk-free income

When you "directly" invest in bank deposits, bonds, debentures, company deposits, etc., you have to pay tax
a) as per your income tax slab rate and
b) on the entire interest earnings.

When you "indirectly" invest in the 'same products' through a debt mutual fund, for a period more than 3 years, you have to pay tax
a) at the rate of 20% but
b) only on the net earnings, after applying indexation on the cost of purchase.


Wednesday, December 10, 2014

Slash mutual fund Dividend tax with Growth option

You can take your returns from mutual funds either in the form of dividends (Dividend option) or as capital gains (Growth option).

Contrary to popular perception, dividends too are taxable.

Further, in the 2014-15 budget, the calculation of dividend distribution tax was tweaked. So now you have to pay more tax on your dividend.

Monday, December 8, 2014

Credit Card Frauds Rise in India: Protect Yourself

Many of us use credit cards, either for special purchases or as part of our everyday spending habits. They’re not only a convenient way to pay for goods and services but also, in the case of some credit cards, earning great rewards.

However, it’s concerning to learn that card fraud is on the rise and that India ranks among the highest instances of card frauds in the world.

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