If you are in your 20s or 30s and try to use some of the “calculate how much you need on retirement” tools available online, the result is an unbelievably large sum; with the effect of inflation and time factored in. And any financial planner would tell you that the only way to save this kind of money would be to save wisely and regularly, take calculated risks and invest in a proportion of equity and debt according to your age, profile, line of business etc.
The voluntary provident fund or VPF is one of the best options which should form the fixed income / low risk category of your retirement planning portfolio.
A client of mine called me up recently to tell me that her bank was offering an interest rate of more than 16 % pa on tax saving fixed deposits, and for senior citizens, it was even higher! This was informed to her by the customer service staff when she had been to her bank for some routine transactions. She was also given a printed paper/ad which asserted this fact.
Currently, the market is flooded with a host of tax free bonds of 10 year and 15 year duration. There are as many as nine such IPOs which are on. All from government companies with a high safety rating and low credit risk –
Burdened with a high current account and fiscal deficit, the government took the easiest way out- and did what other developed countries like the U.S have done to revive the economy and raise resources for the development of the country- targeting the super rich. The budget 2013 has imposed a surcharge of 10 % on those earning taxable income of Rs. 1 crore and above.
The title may seem a bit feminist, especially with the international women’s day being celebrated today. Actually that is what spurred my thinking today on these lines :).
Mr. Shah has been a Non Resident Indian for around 3 years now. When he took up the current assignment abroad, he did the usual banking formalities of converting his existing savings a/c in India into an NRO a/c. He had about 10 lakhs saved from his income earned in India, which he invested in an NRO fixed deposit @ 9.5 % p.a.At the end of the financial year, he realised that he had received only Rs 63,000/- as interest out of the Rs 95,000/- , and around 32,000/- has been deducted as taxes, at the applicable rate of 33.99 % p.a for NRO accounts. Now, Mr. Shah doesn’t actually have to pay tax, as he has no other Indian Income apart from this, and the total interest income is less than the exemption limit of Rs 1.5 lakhs p.a. Now, the only way he can claim this tax back is to go through the process of filing his returns which otherwise wasnt required.