Prajna Capital - An Investment Guide

  Late Filing of Income Tax Return If you have missed out the due date for   filing the Income Tax Return   and you have tax dues which are to be paid to the government, than you should first understand the interest liability that you'd incur while filing a belated return. To understand different interest types of interest, we will have to gain knowledge about the provisions of section 234A, 234B and 234C dealing with interest for 234A – Delay in filing the return of income 234B – Non-payment or short payment of advance tax; and 234C- Non-payment or short payment of individual instalment or instalments of advance tax (i.e., deferment of advance tax) First thing to be kept in mind while determining the interest payable under all these sections is that interest is to be calculated @ 1% per month or part thereof. So even if you are late in filing the return by 10 days, you'll incur the interest for a whole month.   Section 234A – Delay in filing the return of income The taxpayer w...

 God forbid, but should anyone be involved in an accident on the Jaipur-Delhi, RanchiJamshedpur or Vadodara-Mumbai highways, up to `30,000 of the hospital bill will be covered by insurance. The Ministry of Road Transport and Highways has tied up with IFFCO-Tokio General Insurance and ICICI Lombard to offer cashless insurance cover to road accident victims. There will be ambulances to take the injured to hospitals, too. It is not clear whether this cover is in addition to what a road accident victim is entitled to under the Motor Vehicle Act. Road accident victims can claim their entire medical expenses from the insurance company of the offending vehicle. The three highways selected are pilot projects and the ministry may extend the cover to other national highways if the outcome is satisfactory. In the 15 months since the ministry launched the policy, there have been 4,000 accidents and 7,000 claims on the Jaipur-Delhi highway. "We have tied up with ambulance agencies and hospit...

Death claims are not payable under certain circumstances in case of life insurance.     Although life insurance policies are taken in order to ensure that the nominee receives the sum assured (and other benefits, such as riders, bonuses etc.) on the death of the insured, there are quite a number of typical circumstances in which death claims are not payable. Some of these are: If the insured, whether sane or insane, commits suicide within 12 months from the date of issue of the policy or the date of any reinstatement of the policy.   Let's assume that an individual's policy had lapsed due to premium non-payment. He makes up the payment backlog to bring the policy back in force. Two months later, he commits suicide. The insurer will not be liable to pay the death claim to the nominee. If the insured has misrepresented facts, usually pertaining to health conditions, at the time of entering the insurance contract. However, an incontestable period (usually two years after the poli...

     AIN'T THE BEST ET did a round of banks only to find out that the advice wasn't reliable   In the past five years, the Insurance Re gulatory and Development Authority of India (Irdai) has taken a number of steps to curb the menace of mis-selling. After showing the door to Ulips with high charges, the regulator has now trained its sights on banks. It wants banks that sell insurance products to be accountable for the advice given. ET did the rounds of six banks to find out the utility value of their financial advice, and this is what we found. UNBANKABLE ADVICE? Typically a bank's advice appears to be driven by the quantum of commissions earned rather than requirements of the customer. The modus operandi was almost uniform across banks. While maintaining that they had an array of investment avenues on offer, the banks unfailingly promoted traditional endowment and money-back plans. In some cases they did not even mention, until asked, that what they were offering were...

  Karnataka Bank Limited, a leading 'A' Class Scheduled Commercial Bank in India, was incorporated on February 18th, 1924 at Mangalore, a coastal town of Dakshina Kannada district in Karnataka State . The bank took shape in the aftermath of patriotic zeal that engulfed the nation during the freedom movement of 20th Century India. Over the years the Bank grew with the merger of Sringeri Sharada Bank Ltd ., Chitradurga Bank Ltd. and Bank of Karnataka . With over 87 years experience at the forefront of providing professional banking services and quality customer service, they now have a national presence with a network of 488 branches spread across 20 states and 2 Union Territories. Managed by a dedicated & professional management team, they have over 5,844 employees, 86,868 shareholders and over 4.84 million customers. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. IDFC Tax Advantage (ELSS) Fund 4....

  Substitute your RD with SIPs in Income funds   Capital gains benefit available in debt mutual funds make them a superior long-term option on a post-tax return basis If you were asked to name an investment option that will allow you to put small sums on a regular basis, recurring deposits of banks would be the one on top of your mind. Small monthly sums, interest compounded quarterly at FD interest rates, no TDS and a lump sum at the end of the tenure – it's all a neat proposition, no doubt. But did you know that the returns turn out to be not so lucrative once the taxman takes a slice off your interest income pie? Yes, post-tax returns of recurring deposits (RD interest is very much taxable, in case you thought otherwise) can be quite unattractive. But here's a good supplement that not only generates better returns over the long term but is far more tax efficient. Welcome to the world of income funds – a class of debt mutual funds. Suitability If you had a minimum of 2-3 ye...