Prajna Capital - An Investment Guide

IT returns e-filing is now easy. Login to https://incometaxindiaefiling.gov.in/portal/index.jsp to file your returns. e-Filing Process – At a glance Select appropriate type of Return Form Download Return Preparation Software for selected Return Form. Fill your return offline and generate a XML file. Register and create a user id/password Login and click on relevant form on left panel and select "Submit Return" Browse to select XML file and click on "Upload" button On successful upload acknowledgment details would be displayed. Click on "Print" to generate printout of acknowledgment/ITR-V Form. In case the return is digitally signed, on generation of "Acknowledgment" the Return Filing process gets completed. You may take a printout of the Acknowledgment for your record. In case the return is not digitally signed, on successful uploading of e-Return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowle...

Have you filed your income tax return in India before July 31? If anyone has earned an income of over Rs.100,000 in the last Indian financial year, he/she must file his tax return and pay whatever tax due at a uniform rate of 20 percent. Indian income tax regulations have many special provisions for NRIs. If NRIs have to file their returns, they would be well advised to engage the services of a qualified accountant who knows the complex laws and regulations. NRIs can also authorise the accountant to file his return on his behalf to make life simple. It is worth paying the professional fees as the accountants know the procedures and can also claim tax refund on his behalf, if needed, and deal with any tax matters that arise. The accountant can also appeal against any ruling by income tax department, if required. In addition to an accountant, NRIs can appoint an 'agent' to deal with these matters. The persons who qualify as an 'agent' is listed in the income tax rules. ...

The procedure and some deductions available while arriving at taxable income The time to file income tax returns is coming nearer. July 31 is the last date to file IT returns for individuals. The return has to be filed for the previous year - 1.4.2007 to 31.3.2008. So the transactions should have taken place during that period only. Any subsequent transactions will be taken into account during the next year - 2008-09. It is time to compute your taxes and pay off any outstanding dues. This can be done before the date of filing of the returns. It is of utmost importance that one uses the correct form, as is applicable to him. In a radical change from the past, no document (including TDS certificate) should be attached to this form. Officials receiving the returns have been instructed to detach all documents enclosed with this form and return them to the assessee. The forms can be submitted to the Income Tax Department through any of these methods: • By furnishing the returns in a pape...

It's that time of the year again. You knew all along that it would come, whether you ignored or waited for it. The pages of the calendar have turned and you can hear colleagues waking up to it. And you know you can't run away from it any more. We are talking about 31 July, the day we are reminded of our bondage, the price we have to pay for many of the good things in our life. This happens to be the last day for filing income tax returns for all salaried Indians, be they resident or non-resident. Of course, you must have done everything legally possible to maximise your freedom from this bondage called tax. But then, the law permits you only that much. The rest, as they say, is illegal. You might also have wondered about the word return being used for an outgo. Maybe it's because governments always want citizens to see things from their point of view, perhaps for the larger good. Filing of tax is compulsory for everyone whose gross total income - the income under the five h...

HOW TO GROOM LEADERS, ICICI S T Y L E Take very deliberate, calculated decisions: Why did the directors take a very calculated decision—and a very risky one at that—to send Sanjoy Chatterjee, then all of 34, to head its subsidiary in UK? "We wanted some of the top performers to be internationalized. In the same way, Rajiv Sabharwal was given early exposure to rural—again, a very deliberate decision,” says Mr Ramkumar. Train people to take the heat: Dealing with stress and pressure are part of life at ICICI. The high performance culture starts at the board meetings itself, where executive directors are grilled by the entire board. And for most newcomers, this can be an unnerving experience. ICICI has now started simulated training for potential board members which gives them a real sense of an actual setting. Don't worry about going wrong on the calls you take: In judgement calls, the risk of going wrong cannot be eliminated. In case a person fails, there is no witch-hunting. I...

ICICI bank’s leadership in the industry is exemplary. But nothing to compare its ability to spot, groom and deploy leaders in-house. One-man show LISTEN to Mr Kamath as he recounts his original formula. “This entrepreneur was told you that have the support system of ICICI. You have a limited amount of capital. We will give you one good person whom you can pick. The rest of the team you will have to build and this is your business case. Detail your business case, build your team, tell me how you will execute, start executing, report to the board on that basis. Thereafter, move it to a management by-objective type of scenario—where objectives are very clearly set, keep meeting those performance targets. Keep ramping up these targets, if necessary, maybe course correcting the strategy as you go on.” The model was successful. “It allowed the young business heads to evolve into leaders because they took the entire stress of building those businesses and getting them into shape. In that proc...

ICICI bank’s leadership in the industry is exemplary. But nothing to compare its ability to spot, groom and deploy leaders in-house. IT SEEMED like a random move then. In 2002, Sanjoy Chatterjee, 33, an almost unknown face to the outside world, was assigned to head ICICI Bank's UK subsidiary. Asking a young and relative inexperienced executive to lead the bank's UK operations may have looked risky and reckless to many at that time. But late last year, when the bank rejigged its top brass, the plot began to fall in place. Chatterjee got elevated to lead its critical international business and corporate banking divisions. His elevation hints at two things: the bank's phenomenal talent screening process and its courage to bet on young and bright executives much ahead in their careers. Chief executive officer K V Kamath, 59, knows that that's the only way ICICI Bank will be able to maintain its edge and growth going forward. The average age of Indians will fall to 28 in the...

Scurrying for papers yet again to file your income-tax returns? Here are lists the necessary steps to make the process hassle-free NEVER ask a man his wage and a woman her age is an adage often quoted but not one that your taxman upholds. Yet again, it’s that time of the year when you are required to disclose the details of your income and file income-tax returns. To make this pocket-pinching process a non-taxing job, we list down six steps which you can follow to sail through. DO YOU NEED TO PAY TAX ? This year, the income-tax department has made revisions with regard to tax slabs and exemptions. The income slabs for different categories have been revised this year, so verify if you need to pay tax at all. You are not required to file tax returns if you are a man whose earnings were less than Rs 1.1 lakh in 2007-08. On the other hand, in case of a woman, an income of less than Rs 1.45 lakh during the previous financial year is exempt from filing tax returns. Similarly, senior citizens...

Is Gold A Golden Investment? There is considerable action in the other non-financial fund category, namely, gold. There are two kinds of gold-related funds in India. One is the so-called gold ETFs, which act as proxies for holding gold in physical form. Fund companies that run gold ETFs invest all of the investors' money in gold. Thus, the money invested in such funds makes profits or losses exactly in line with the price of gold, after charging around 1 per cent per annum as expenses. In the year or so since the first gold ETF was launched these funds' number has grown to five with few more in the pipeline. For a niche fund type, they've proven reasonably popular and hold assets of Rs 550 crore. However, when one compares these funds to the amount of gold that is traded in the commodity markets, this is a pittance. However, it's the other kind of gold fund that is having a more interesting time. These are funds that invest in the stocks of gold mining, refining and ma...

Often under-rated and out of radar, deep value stocks can do wonders to your equity portfolio. THEY are believed to carry hidden treasure on Dalal Street. While investors call them the low-lying unpolished gems of the stock market, brokers say there are big bucks to be made if you can identify these stocks early. No prizes for guessing this, we are talking about deep value stocks which can do wonders to one’s portfolio when market re-assesses them. According to analysts, a deep value stock can be defined as something which is low priced in relation to the margin of safety the stock provides, to limit losses when a mistake is made. Lets get some insight into how to identify these stocks, what should be your ideal portfolio allocation and reasons behind their low valuations in the market. SLEEPING GIANTS They are like any other stock traded on the exchange, but there is no hypothetical understanding of them. A section of traders on the Bombay Stock Exchange even call these stocks as ‘ s...

If you fall under this category, go for a conservative asset mix & adequate cover while securing your finances IN TODAY’S world, it’s a Herculean task to fulfill all your family responsibilities. It takes all your savings and emotions to make sure that your kids find their feet in today’s highly competitive world. And when these fledglings finally spread their wings and move on, you find yourself emotionally and sometimes monetarily drained. Take the case of 51-year-old K D Sharma. Within a few months of their daughter’s wedding, their son also decided to move out. The couple suddenly realized that now they are financially strained. Their life-long savings been utilized for securing the future of their kids and it appeared that they have to start afresh. So, if you are also undergoing through the same pangs, here are some tips that can help you chart out a new chapter after you’re done with all your responsibilities. ADEQUATE COVER Insurance advisors suggest protection against earl...

Equity Linked Saving Schemes ( ELSS ) or tax saving mutual fund schemes as they are otherwise known as, are a popular tax saving investment. The major reason for this popularity has been the introduction of Section 80C of the Income Tax Act, from April 1, 2005. This section allows the investor to invest up to Rs 1 lakh in various investment products and get a tax deduction for the same. The list of investment products also includes ELSS. Earlier, till March 31, 2005, investment in these tax saving schemes only allowed for a tax deduction of up to Rs 10,000 under Section 88. However, that being said, there are various things an investor needs to keep in mind before deciding to jump into an ELSS investment. Section 80 C spoils you for choice: As has been mentioned above, ELSS is not the only investment avenue that comes under Section 80C. Other investments such as Life Insurance, Public Provident Fund (PPF), National Savings Certificates (NSCs), Senior Citizen Savings Scheme (SCSS), Pos...

Enumerated below are twelve major principles and sixteen minor ones with brief comments on each of them: First Major Axiom: On Risk “Worry is not a sickness but sign of health. If you are not worried, you are not risking enough.” Adventure is what makes life worth living. Every occupation has its aches and pains. The rich have to worry about their wealth. But, if there is a choice between remaining poor and worry-free, the selection is obvious. It is better to be wealthy and worried than to be worry-free and poor. Minor Axiom I: “Always play for Meaningful Stakes.” If you invest Rs. 1000 and your investment doubles, you have only Rs. 2000 and are still poor! So if you want to be rich, you must increase your stakes. Minor Axiom II: “Resist the allure of diversification”. Firstly , diversification negates the earlier principle of playing for meaningful stakes. Secondly , it may keep you where you began so that your gains on few will cancel out the losses on the other few. Thirdly , it en...

AUTOMATIC teller machines ( ATMs ) have revolutionized the personal banking industry, providing unprecedented ease and convenience. But they have also created new opportunities for thieves and fraudsters. Here are some tips to keep you and your money secure while conducting all types of banking transactions. • Never walk away from the teller’s window or an ATM with cash still in hand. If you are going to count your money, do so at the window or the ATM. Then take the time to put your money into your wallet and to put your wallet into an inside pocket or pouch before leaving. • Be aware of your surroundings while making transactions at an ATM. If you feel uneasy, end the transaction as quickly as possible and leave the area. • Look around before entering a secure ATM centre. Never hold the door open for someone else entering an ATM booth. You could be letting in a possible offender. • If someone follows you into an ATM centre and you feel uncomfortable, leave right away. • Fill out depo...

In a breather to all mutual funds investors, the Securities and Exchange Board of India ( SEBI ) has asked fund house 'not to charge' entry and exit load on bonus units and units allotted on reinvestment of dividend, with effect from April 1, 2008. The new rule follows the recommendations of the Association of Mutual Funds in India's Working Group on Standardization of Key Operational Areas. An entry load is charged when an investor enters a mutual fund scheme. For redemptions made thereafter, investors are charged an exit load by the fund house. In the case of the dividend reinvestment option, the investor is assigned units for dividend that is re-invested in the scheme. At times, the fund manager converts earnings from the scheme into units and distributes them as bonus units to the investors. These bonus units are then charged entry load and exit load. The logical argument made against charging such loads is that it is investor's money that has contributed to the ea...

Some investment avenues for those who don’t want to take the risks associated with stock markets When the stock markets go the downside way, investments in fixed deposits ( FDs ) become attractive again. FDs remained a dormant investment avenue for the past few years, mainly because of the fact that the interest rates were low, and these investments are unsecured. So, the government's saving schemes, especially the post office saving scheme, had an edge over FDs. Fixed deposits attractive again However, some recent changes have again brought FDs into the limelight. The contributing factors include the decision to give tax breaks in terms of coverage under Section 80C of the Income Tax Act. The second major factor has been the gradual increase in the interest rates on FDs. These deposits have been brought on par with small savings schemes. Investments in term deposits for those planning to take a tax deduction will have a lock-in period of five years. The government notification sa...

A few days ago, I received an interesting email from someone who finds himself worrying about the effect of catastrophic events on his investments. The writer says that the basic theme of my investing advice is always to invest gradually over the long-term. What worries him is the possibility of catastrophic events like a global depression or a war that suddenly wipes out carefully accumulated wealth. He'd like to know what one can do to protect one's nest egg against such disasters. This worry is justified. There have been few parts of the world that have not gone through the twentieth century without a major economic-political-social dislocation. We can't just assume that our lives will pass without anything like that happening. In fact the world seems especially ripe for a wide-ranging catastrophe. From nuclear terrorism to peak oil to disastrous climate-change, you can pick a favorite one from a choice of catastrophes. By the way, that phrase, 'A Choice of Catas...

Simplicity - Warren Buffet Warren Buffet, who has donated billion to charity. Here are some very interesting aspects of his life: 1. He bought his first share at age 11 and he now regrets that he started too late! 2. He bought a small farm at age 14 with savings from delivering newspapers. 3. He still lives in the same small 3-bedroom house in mid-town Omaha , that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence. 4. He drives his own car everywhere and does not have a driver or security people around him. 5. He never travels by private jet, although he owns the world's largest private jet company. 6. His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls them on a regular basis. He has given his CEO's only two rules. Rule number 1 : do not lose any of your ...