FIXED INCOME


Debt mutual fund (MF) schemes carry credit risk, if any investment they have made defaults or gets downgraded. The credit risk depends on the portfolio of holdings. Credit risk is the risk of losing capital and interest, if the portfolio financial investment or the bond issuer defaults or is...

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The Reserve Bank of India (RBI) has issued an advisory for timely payment of advance tax. Only select bank branches accept advance tax payment and there can be a rush on the due date. Online advance tax payment is easy and worth exploring, to avoid visiting the bank branch. You can check...

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The income-tax appellate tribunal (ITAT) has ruled that an individual should get the full benefit of tax exemption for property purchase made after selling own property. Tax exemption will be allowed if he/she has purchased the property, along with stamp duty and registration charges, from...

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Filing of statement of financial transactions (SFT) for professionals and other entities by 31st May is a new compliance requirement from the Central Board of Direct Taxes (CBDT). A person carrying on business or professionals including doctors, lawyers and architects, will have to report...

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The Mumbai income-tax appellate tribunal (ITAT) recently disallowed tax exemption on house rent allowance (HRA) for rent paid by an assessee to her mother. The case highlights the issue of fake rent receipts from parents to claim HRA tax deduction. The key factors that worked against the...

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The Income-tax Appellate Tribunal (ITAT) has ruled that Shah Rukh Khan (SRK) has to include notional rent from his Dubai villa in his income-tax returns filed in India. It is reported that SRK had submitted to the ITAT that, under the India-UAE tax treaty, income from immovable property in...

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R Balakrishnan R Balakrishnan 04 April 2017
Stock markets and mutual funds keep our universe closed to bonds. It is as if we are happy with liquid funds at 6% or 7%pa (per annum), or we are chasing stocks that can add zeroes to our wealth. Between these two extremes, there is also a world where we can invest money for fixed periods and...

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The government on Friday lowered the interest rate on small savings schemes, including Public Provident Fund (PPF), by 0.1 per cent for April 1-June 30 period.   Accordingly, interest rates for small savings schemes are to be notified on quarterly basis.   "The government has...

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Senior Citizen’s Savings Scheme (SCSS) is a good fixed income product that offers tax-saving as well. An SCSS account can be opened by an individual who has reached 60 years of age on the date of opening of the account. It can also be opened by a person of age 55 years or above (but less than...

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If a property-owner is getting a rent of more than Rs50,000 per month (pm), then the rent-payer is required to deduct tax at source (TDS) @5%. It will create a trail for the income-tax (I-T) department to ensure that the property-owner has shown the rent in her/ his tax returns and has paid...

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Infusing some amount of secondary market liquidity can help attract retail investors to enter the corporate bonds space, a top Securities Exchange Board of India (Sebi) official said on Tuesday.   "As retail investor, when I get into bonds, I also think about liquidity. When I put...

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The Union Budget for 2017 eliminated the loophole regarding tax exemption of interest on home loan on property let out which was helping property hoarders. The set-off loss, calculated as home loan interest minus the rental income, will now be restricted to Rs2 lakh.  Additional loss can be...

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IANS 22 February 2017
Union government securities' (G-sec) yields declined sharply during the third quarter ended December 2016 on account of the demonetisation drive that led to a surge in bank deposits and bullish market sentiment, an official said on Tuesday.   "G-sec yields declined sharply across the...

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IANS 17 February 2017
The Reserve Bank of India (RBI) on Thursday permitted multilateral and regional financial institutions to invest in rupee-denominated bonds.   "In order to provide more choices of investors to Indian entities issuing rupee-denominated bonds abroad, it has been decided to also permit...

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Raj Pradhan Raj Pradhan 17 February 2017
Looking for a higher interest rate on fixed deposits (FDs)? You have the option to go to small finance banks (earlier non-banking finance company—NBFC) licensed by the Reserve Bank of India (RBI). With competition among small finance banks (SFBs), customers can expect to get interest rates up...

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Raj Pradhan Raj Pradhan 03 February 2017
Two mutual fund (MF) companies are offering the option of instant redemption credited to your savings account within minutes. The idea is to make the liquid/ultra short-term (UST) MF scheme to work like a savings account, with money being accessible immediately.    It is certainly an...

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RAJ PRADHAN RAJ PRADHAN 20 January 2017
The government’s move to demonetise Rs1,000 and Rs500 currency notes has led to a lowering of bank fixed deposits (FD) rates. Low bank FD rates, coupled with taxes, can be disastrous for those depending mainly on income from their savings.    Another option is investing in small...

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Raj Pradhan Raj Pradhan 06 January 2017
With falling interest rates and the need to search for good fixed-income investment options without risk to the principal, media attention has turned to the languishing product offering 8%pa returns and carrying sovereign guarantee. It is government of India (GoI) savings (taxable) bonds,...

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Raj Pradhan Raj Pradhan 23 December 2016
The government’s move, to demonetise Rs1,000 and Rs500 notes to curb black money in the system, has led to a lowering of bank fixed deposits (FD) rates. Low bank FD rates, coupled with taxation as per individual tax bracket, can be disastrous for savers. However, savers still have some...

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Raj Pradhan Raj Pradhan 09 December 2016
The government’s move to demonetise Rs1,000 and Rs500 currency notes, to curb black money, has led to lowering of interest rates on bank fixed deposits (FDs). Low bank FD rates, coupled with taxation as per individual tax bracket, can be disastrous for savers. Should you invest in liquid or...

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