Prajna Capital - An Investment Guide

Use an ATM to e-verify your income tax return Recently, State Bank of India and Axis Bank have started offering this facility Every year, when the last date for filing IT returns approaches, income tax assesses crowd tax-filing kiosks and the income tax department's website. The usual last date is 31 July. During the assessment year (AY) 2015-16, more than 1.4 million returns were filed on 31 August (8% of all the returns filed till then). That year the deadline was extended by a month to 31 August and then again to 7 September. Similarly, about 1.7 million returns (13% of all the returns till then) were filed on 31 July during AY2014-15, when the last date was not extended. In the last-minute rush, as in other spheres of life, what can go wrong, will go wrong. Plus, the process of filing the return is not complete till you verify it. Ideally, this verification should be done after uploading your return, so that you have a chance to rectify any errors. With last-minute filings, yo...

When it comes to saving money, people often opt for fixed deposits (FD), considering them to be risk-free. The security of having money in the bank is apparently a significant factor and with FDs, it is highly unlikely that you will lose your money. However, with other factors at play, notably inflation and taxes, do FDs provide more bang for your buck? Let us take a closer look at this phenomenon. You invest Rs. 10,000 in an FD for five years at an interest rate of 7.5% compounded every quarter (Most Indian banks offer   7-7.5 %). After five years, the maturity value is 14,499 rupees. However, with an   inflation rate of 5.8% , the purchasing power of 10,000 rupees has fallen. The interest on FDs are also taxable, the more one invests in FDs, the more tax one has to pay (on the returns). However, FDs give fixed rate of interest, and mutual fund schemes do not guarantee returns. With rising inflation, a fixed interest rate can seriously undermine the value of long-term investments. I...

Get one credit report free of cost every year   In a move that is set to benefit consumers, the Reserve Bank of India (RBI ) has mandated that all c redit information companies (CICs) should provide one credit report free of cost to customers once a year. The customer can access it from the company's website and the CICs need to start the service from 1 January 2017. "We see the move by the RBI to introduce the free credit report in India as a positive step for consumers. Similar to other markets, we also believe that this will represent the next level in the Indian consumer's awareness and involvement in their individual credit information, the health of which has become critical to accessing credit," says Mohan Jayaraman, Managing Director, Experian Credit Bureau, India. The credit report contains score based on one's credit history. This information is used by the banks and financial companies in giving approval to any loans you may apply for. For further in...

All investments are not equally important. You need to fulfil the basic investment needs first before moving on to the others We know how investing is different from just saving. If we put our saved money somewhere where it will grow, then that's investing. However, there are a number of possibilities available when we want to invest, and it isn't possible to make sensible choices without having a way to classify things. However, let's not jump into classifying investments right away. Before we do that, we need to classify our need for making an investment. Investments can be made for a huge variety of needs. You could be saving for emergency medical funds which are usually required at a moment's notice. Or you could be saving for your retirement which is a few decades away, or anything in between. At Value Research, we have created a useful framework for thinking about these investment needs. We divide investment needs into four levels. Each level is more fundamental t...

Invest Mirae Asset Great Consumer Fund Online   For retail investors, investing in the current market scenario seems to be a tricky exercise. One theme that works not only in the short term but also in the long term is consumption. Among schemes which have sharp focus on consumption theme , Mirae Asset Great Consumer Fund has consistently delivered good returns . At present, close to 25% of the scheme's portfolio is exposed to banking and financials. One of the chief reasons for this is that these sectors serve as the backbone of the economy by funding growth. The scheme also has reasonably good exposure to other themes under the broad consumption category. One such theme is automobiles. The scheme's fund managers Neelesh Surana, Bharti Sawant and Sumil Agrawal have consistently stuck to the fund house's philosophy of refraining from buying overvalued stocks and buying those firms which have high cash flows and good investment ratios. Due to this, ...

Recurring Deposits Online   Recurring Deposits combine regular investing with guaranteed returns - making them an attractive option for risk averse investors   The recurring deposit (RD) is one of the most basic financial products available it the market. It can be used as a tool to inculcate the habit of saving.   What is a recurring deposit? An RD is a type of term deposit offered by banks and non-banking financial companies.   There are two types of RDs- regular and flexible .   A regular RD is offered by all banks, while only some offer flexible ones. A regular RD allows you to deposit a pre-specified amount at pre-decided intervals. It becomes a compulsory investment. The instalment amount once fixed, cannot be altered. For instance, if you sign up with a bank to invest   R 1,000 every month for 12 months in a regular RD, you will have to invest the specified amount at a fixed date every month. In a flexible RD, you can deposit any amount, on any day, and any ...

How to check the status of your tax return acknowledgement sent by post   A large number of taxpayers are likely to send physically signed ITR-Vs to the CPC. In that case, here's how you can track your acknowledgement   According to a press release by the Central Board of Direct Taxes (CBDT), 7.53 million taxpayers used the e-verification facility to verify their income tax return (ITR) this year (till 5 August). Popularity of e-verification soared this year compared to assessment year (AY) 2015-16, when about 3.29 million taxpayers had used this facility till 7 September 2015, the last date that year. For AY 2016-17, the last date for filing ITR was extended to 5 August this year.     Aadhaar as a means of e-verification also found favour with more people. While about 1 million had used it in 2015, about 1.77 million used Aadhaar this year. Roughly 22.7 million e-returns had been filed till 5 August, "thus, over 35% of taxpayers have already completed ...