Individual Investor Recommendations

The concept is familiar to financial professionals, but rarely consider the individual investor. And 'the concept of a threat. In short, it means that you drive, a loser, if prices move more. Here are some examples:

The most obvious example is a hedge fund manager who has a stock "short". This means that the profits of the fund when the stock goes down and loses when it goes up. His risk is upside down.

Investment fund managers try to beat a specific benchmark. When they are in part out of the market, or a very conservative investment, the risk is reversed.

When a stock analyst to write a professional relationship, which recommends the stock, list all the factors, which may be problems with the company. When an analyst recommends against the owner of the store, lists all the things that could be better than expected. The risk is upside down.

This is an essential concept for the individual investor. It begins by analyzing your personal situation

Issues relating to key investors: What are your risks?

The average investor thinks only downward. Because of our natural instincts of man, well established in the psychological study of behavioral finance, we focus everything we could lose. This can have a chilling effect.

Meanwhile, a steady stream of new issues. This is the grain to the reports of the media every day.Professional cut through the news. They have a specific marketing plan, balancing risk with reward. Most retail investors do not have a solid plan - one with a specific goal and a process to achieve the objective. They often make the mistake of treating their investment as a game of poker, where they are "all inclusive" - or all out.

If you have all the money you need for your future, you need to preserve capital. I understand that interest rates are low, but safety is important. Be careful!Most of us are not in the happy situation. We need to create wealth, not only to preserve wealth.

If you have a great need for the future and you do not own any stocks, was undervalued.To understand the risk, you should ask yourself, what would you do if the market is going to 15,000? For 20 000? When you decide to buy? If you do not have a plan, it means that you will fail to achieve your goals.Every portfolio needs a balanced asset allocation. The correct answer is different for every investor.

Great victory

The professional investor views risk in terms of raising and lowering. The fan is in decline. That does not pose a decisive when there is opportunity and the units on the market to new heights. There is no better time to invest when there is the concern of many well known and well documented. A bad time to invest is when nobody cares.It is very difficult to understand and even harder to implement.

Indira Geffrys is a what is malware and financial expertinterested in economics, antivirus live, and different business opportunities.

5 Ways for Parents to start saving for their kids college education

I just had a little girl. She is the cutest thing that I have ever seen. Of course, I am sure that is what every parent says, but really, she is the cutest little girl. As she has started to get a little bit older, my husband and I have started to think about her college education. As college graduates, we really hope that she decides to go to college. My husband and I are first generation college grads and we would love for our little girl to continue the trend. It does seem like it is forever away-our little girl going to college-but it really isn't. My husband and I have decided to start saving for our little girl. If you are thinking about saving for your child's education. Start today. It can never be to early to do so!

Here are 5 tips when it comes to saving for college. 

Set a goal
Set a goal when it comes to saving money. If you get paid every 2 weeks, take a little bit out of every pay check. If you are starting early enough, you only have to take out $50 dollars every check. Decide on how much you want to put aside for your child's education. 


Stick to that goal
Once you start saving, make sure that you are sticking to that goal. It is a small sacrifice now that will benefit your child for years to come. 


Leave the money alone
After you have saved and you are starting to build up a considerable amount, pretend that it doesn't even exist. Don't touch that money. It can be easy to use the money on a rainy day, and justify not paying it back. If you are in absolute need to use it―be careful of paying it back. 


Set up an investment account
If you are afraid that you will use the money, set up an account that will only let you put money in―not take it out. These type of account will also have high interest rates so that you can earn money while you are saving it.


529 plan
There are two 529 plans. One is to start paying for a certain college now. This has to be for a certain college and for no other. The other plan is to start paying for college and then transfer it to the college that your child decides to go to. It is nice because you will only have to pay for how much college costs today. You don't know how much it is going to keep going up. 

If you want your child to go to college, make sure that you start saving for college. If you plan accordingly, it will not be a huge burden to send your child to college. Good luck saving!

About the Author Neltje Maynez is a freelance writer for MyCollegesandCareers.com.

My Colleges and Careers helps people determine if an online education is right for them, helps them understand how they can find the best online colleges, and which ones they can choose from to reach their goals.

Tips on Getting funding For your New Business

Whenever you plan to start a new business, there are so many different things that you need to think about. The first and foremost is what business are you going to start? Then comes to understanding who will you be targeting in the market? But the most important of all is how you are going to acquire the capital or funding that is going to give you the start?

Economic Concerns

The recent downfall in the economic sector has made it very difficult for you to be selected even by government owned banks for small business loans and opening lines of credit has become even more difficult. It is about time that you need to start thinking differently.
Changing the way you think and the way you run your business is the only way you can get an upper hand in the market. This means finding other than conventional ways to achieve funding for your new business. The following are some of the tried and tested alternative means of getting funding for your new business and will give you some idea of where to start from.

Bootstrapping

This probably is one of the most widely used methods of funding your business in these hard times. Bootstrapping means that you fund your business yourself. Although this is a much more time consuming way but it does give you freedom. You do not have to worry about paying back loans.

Economize where you need to

This probably is the most difficult thing to do, but it is very necessary. You need to pinch pennies as much as possible in the beginning. Do not hire consultants or maintain an expensive staff in the start.

Look Around for Part Time Help

When starting a new small business, it is always convenient to ask your friends or family for help. This could be help in staffing your business or in loaning you money. Your family and friends are can be reliable and can help you as you start your business.

Small Business Loans

They have many programs to help new business owners including some grants. Take a look at their programs in order to see what program might best fit your needs.

There are many different ideas for funding a new business. All you need to do is be imaginative and have an out of the box thinking drive and you will face no losses.

Don’t risk everything though! Contrary to what many people think, business is about taking calculated, not big and bold risks

If your idea appeals to many people, you may want to consider VC money. A lot of VCs are on Twitter. Search people here by interest to find some of them.

Tips on Getting funding For your New Business

Whenever you plan to start a new business, there are so many different things that you need to think about. The first and foremost is what business are you going to start? Then comes to understanding who will you be targeting in the market? But the most important of all is how you are going to acquire the capital or funding that is going to give you the start?

Economic Concerns

The recent downfall in the economic sector has made it very difficult for you to be selected even by government owned banks for small business loans and opening lines of credit has become even more difficult. It is about time that you need to start thinking differently.
Changing the way you think and the way you run your business is the only way you can get an upper hand in the market. This means finding other than conventional ways to achieve funding for your new business. The following are some of the tried and tested alternative means of getting funding for your new business and will give you some idea of where to start from.

Bootstrapping

This probably is one of the most widely used methods of funding your business in these hard times. Bootstrapping means that you fund your business yourself. Although this is a much more time consuming way but it does give you freedom. You do not have to worry about paying back loans.

Economize where you need to

This probably is the most difficult thing to do, but it is very necessary. You need to pinch pennies as much as possible in the beginning. Do not hire consultants or maintain an expensive staff in the start.

Look Around for Part Time Help

When starting a new small business, it is always convenient to ask your friends or family for help. This could be help in staffing your business or in loaning you money. Your family and friends are can be reliable and can help you as you start your business.

Small Business Loans

They have many programs to help new business owners including some grants. Take a look at their programs in order to see what program might best fit your needs.

There are many different ideas for funding a new business. All you need to do is be imaginative and have an out of the box thinking drive and you will face no losses.

Don’t risk everything though! Contrary to what many people think, business is about taking calculated, not big and bold risks

If your idea appeals to many people, you may want to consider VC money. A lot of VCs are on Twitter. Search people here by interest to find some of them.

Loan Modifications: What You Need to Know

Loan modifications come in a wide variety of permutations. In some situations, the bank may offer to stretch the length of the loan out by several years so that the monthly payment can be lowered. In others, the financial institution may forgive a portion of the loan and recalculate the monthly payment. Conversely, some loan modifications can help a consumer save on interest by accelerating the repayment period. No matter what kind of loan modification you are considering, here's what you need to know.

Know What You Can Afford

The new payment amount must be affordable. Draw up a budget and decide how much you can reasonably afford to pay. Once you have a range in mind, consider how long the loan's term would need to be to satisfy it at its current interest rate. Then consider if that range is reasonable. For example, if you discover that you would need to extend your mortgage from eleven years left to 24 years left to make the payment affordable, you may need to shave down your budget in other areas or consider selling the house.

Approach Your Financial Institution

Loan modifications are not usually handled by the customer service representatives you see at the branch or talk to on the phone. Often, all modifications are done by a special department located in the bank's headquarters. To best reach the correct person or department, call the normal customer service number and ask. Once you've been placed in contact with the correct personnel, collect a direct-dial phone number for future reference.

Communication is Key

The reason why this cliché is used to often is because it is true. If you are negotiating a loan modification, you will want to remain in contact with your financial institution. A loan modification offer is usually only good for 30 or 60 days, after which it expires. You need to keep on top of the dates and make sure that no correspondence was lost or mutilated in the mail. You can use registered mail to communicate, or simply call a week or so after you return the paperwork.

Understand the Terms

While having a modification summarized over the phone is great for helping you understand it, that conversation does not relieve you of your responsibility to read the document. Read through the entire modification so you will understand all of the stipulations. For example, you may be waiving your right to take any payment extensions or skip-a-payment offers.
Navigating a loan modification can be confusing. By following these tips, you can ensure that you get the right modification for your financial needs. Communication and comprehension are also essential to arriving at the perfect solution for your financial problem.

Miles Walker writes about auto insurance comparisons over at Car Insurance Comparison .org. His recent review looked at Hawaii car insurance.

Loan Modifications: What You Need to Know

Loan modifications come in a wide variety of permutations. In some situations, the bank may offer to stretch the length of the loan out by several years so that the monthly payment can be lowered. In others, the financial institution may forgive a portion of the loan and recalculate the monthly payment. Conversely, some loan modifications can help a consumer save on interest by accelerating the repayment period. No matter what kind of loan modification you are considering, here's what you need to know.

Know What You Can Afford

The new payment amount must be affordable. Draw up a budget and decide how much you can reasonably afford to pay. Once you have a range in mind, consider how long the loan's term would need to be to satisfy it at its current interest rate. Then consider if that range is reasonable. For example, if you discover that you would need to extend your mortgage from eleven years left to 24 years left to make the payment affordable, you may need to shave down your budget in other areas or consider selling the house.

Approach Your Financial Institution

Loan modifications are not usually handled by the customer service representatives you see at the branch or talk to on the phone. Often, all modifications are done by a special department located in the bank's headquarters. To best reach the correct person or department, call the normal customer service number and ask. Once you've been placed in contact with the correct personnel, collect a direct-dial phone number for future reference.

Communication is Key

The reason why this cliché is used to often is because it is true. If you are negotiating a loan modification, you will want to remain in contact with your financial institution. A loan modification offer is usually only good for 30 or 60 days, after which it expires. You need to keep on top of the dates and make sure that no correspondence was lost or mutilated in the mail. You can use registered mail to communicate, or simply call a week or so after you return the paperwork.

Understand the Terms

While having a modification summarized over the phone is great for helping you understand it, that conversation does not relieve you of your responsibility to read the document. Read through the entire modification so you will understand all of the stipulations. For example, you may be waiving your right to take any payment extensions or skip-a-payment offers.
Navigating a loan modification can be confusing. By following these tips, you can ensure that you get the right modification for your financial needs. Communication and comprehension are also essential to arriving at the perfect solution for your financial problem.

Miles Walker writes about auto insurance comparisons over at Car Insurance Comparison .org. His recent review looked at Hawaii car insurance.

Small business women entrepreneurs should avoid these mistakes

If you have started a business on your own, mistakes are bound to happen as you are unaware of a lot of strategies and lack experience. It is quite difficult for women entrepreneurs to get financial help as venture capital firms are male dominated and most of the times they do not find the business started by women lucrative enough to finance. Such a situation can lead you to falling in to debt for which you may have to search for various debt relief options. When you start your own business it is very important that you understand the basic necessities of the business that you are about to establish. If you don’t achieve this you may not be able to reap fruits of your hard work and dedication.

There are certain mistakes that you should avoid as a women entrepreneur, if you are starting a business of your own.

1. Not planning properly – Failure to plan can have devastating effects on your business. Very few businesses, whether newly set up or established, take time for planning. Your overall business plan can be considered the blue print of your success and the most important part of this is your financial plan. Your plan should include estimation of income, expenses and overall cash flow. Most of the times you fail in business because you don’t have standard goals to measure your progress against.
2. Making personal guarantees – You should avoid, as a small business owner, personal guarantees. You will find banks advocating for them, however you should keep in mind that as an entrepreneur you are investing a considerable amount of personal assets in your business. If you face problems getting finance for your business, you should look for other alternate avenues which can provide you help.
3. Not being able to manage account receivable – As a small business owner, you will be constantly challenged by accounts receivable. Your customers may take a long time to complete the payment such as 60 to 90 days but you may have vendors breathing down your neck wanting their payments within 30 days. You need to do planning and budgeting to make this process easier. You also need to make collection calls to various customers in order to make them pay as soon as possible.
4. Not having a working knowledge of finances - When you hire a team, it is important that you have a meeting with the in-house accountant or CPA but this doesn’t mean that you won’t have an understanding of your finances. It is necessary that you know the basics of finances to monitor the progress of your business.

If you take care to avoid these mistakes, your business will have a steady growth enabling you to reap profits.

Small business women entrepreneurs should avoid these mistakes

If you have started a business on your own, mistakes are bound to happen as you are unaware of a lot of strategies and lack experience. It is quite difficult for women entrepreneurs to get financial help as venture capital firms are male dominated and most of the times they do not find the business started by women lucrative enough to finance. Such a situation can lead you to falling in to debt for which you may have to search for various debt relief options. When you start your own business it is very important that you understand the basic necessities of the business that you are about to establish. If you don’t achieve this you may not be able to reap fruits of your hard work and dedication.

There are certain mistakes that you should avoid as a women entrepreneur, if you are starting a business of your own.

1. Not planning properly – Failure to plan can have devastating effects on your business. Very few businesses, whether newly set up or established, take time for planning. Your overall business plan can be considered the blue print of your success and the most important part of this is your financial plan. Your plan should include estimation of income, expenses and overall cash flow. Most of the times you fail in business because you don’t have standard goals to measure your progress against.
2. Making personal guarantees – You should avoid, as a small business owner, personal guarantees. You will find banks advocating for them, however you should keep in mind that as an entrepreneur you are investing a considerable amount of personal assets in your business. If you face problems getting finance for your business, you should look for other alternate avenues which can provide you help.
3. Not being able to manage account receivable – As a small business owner, you will be constantly challenged by accounts receivable. Your customers may take a long time to complete the payment such as 60 to 90 days but you may have vendors breathing down your neck wanting their payments within 30 days. You need to do planning and budgeting to make this process easier. You also need to make collection calls to various customers in order to make them pay as soon as possible.
4. Not having a working knowledge of finances - When you hire a team, it is important that you have a meeting with the in-house accountant or CPA but this doesn’t mean that you won’t have an understanding of your finances. It is necessary that you know the basics of finances to monitor the progress of your business.

If you take care to avoid these mistakes, your business will have a steady growth enabling you to reap profits.

Before taking Personal Loans...

Taking a personal loan is very easy, all you need to do is just apply for a personal loan on any bank or brokers website. Their agents will call you within 48 hours to collect your documents and if you are eligible the loan will be sanctioned within 4 working days. That much simple...

But don’t forget other side of the coin, Getting a loan is easier but Repaying may not be that easier. Let’s see Pros and cons of personal loans, though I may not suggest you to go for personal loan.

What is a personal loan?

Mostly when one needs for an urgent cash and do not have emergency fund in hand they go for personal loan because it do not requires any security or guarantor and you can use it for any purpose as u wish.

Who is eligible for a personal loan?

Any Salaried individuals or self employed individuals / professionals can get personal loan who have income proof and address proof/ identity proof. Below are the lists of documents you need to submit for applying personal loan.

• Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence)
• Address Proof (Ration card Tel/Elect. Bill etc)
• Bank Statements
• Latest salary slip or latest Form 16
• Latest ITR in case of self employed

Also some bank requires credit history like previous loan or credit card history. This may creates a problem for one who applies for the first time.

What are Interest rates offered on personal loans?

Flat rate: Interest calculated for entire tenure for the loan and divided in each month EMI. DONT take personal loan which has fat rate of interest because it will be costly.

Reducing rate: Interest calculated on the outstanding amount each month. Mostly all banks offer reducing rates. Always go for reducing rates personal loans.

Interest rates for personal loan could be anywhere between 14% and 25%. 

What are others charges?

• Non-refundable Processing fees normally 5-10%. You can negotiate on this.
• Prepayments charges normally 5-10% on outstanding amount after 6-12 months.
• Payment Protection Insurance (PPI) charges, negotiate on this.
• Service TAX.

Always calculate Total Amount Repayable (TAR) while taking personal loan. Try to take loan for minimum tenure so that less interest is paid towards it.

• As far as possible try to avoid personal loan for Travel, shopping or any other unnecessary things.
• For Emergency Purpose, you should have Emergency Fund & not the Personal Loans.
• DON’T go for a personal loan without considering alternatives.

Before taking Personal Loans...

Taking a personal loan is very easy, all you need to do is just apply for a personal loan on any bank or brokers website. Their agents will call you within 48 hours to collect your documents and if you are eligible the loan will be sanctioned within 4 working days. That much simple...

But don’t forget other side of the coin, Getting a loan is easier but Repaying may not be that easier. Let’s see Pros and cons of personal loans, though I may not suggest you to go for personal loan.

What is a personal loan?

Mostly when one needs for an urgent cash and do not have emergency fund in hand they go for personal loan because it do not requires any security or guarantor and you can use it for any purpose as u wish.

Who is eligible for a personal loan?

Any Salaried individuals or self employed individuals / professionals can get personal loan who have income proof and address proof/ identity proof. Below are the lists of documents you need to submit for applying personal loan.

• Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence)
• Address Proof (Ration card Tel/Elect. Bill etc)
• Bank Statements
• Latest salary slip or latest Form 16
• Latest ITR in case of self employed

Also some bank requires credit history like previous loan or credit card history. This may creates a problem for one who applies for the first time.

What are Interest rates offered on personal loans?

Flat rate: Interest calculated for entire tenure for the loan and divided in each month EMI. DONT take personal loan which has fat rate of interest because it will be costly.

Reducing rate: Interest calculated on the outstanding amount each month. Mostly all banks offer reducing rates. Always go for reducing rates personal loans.

Interest rates for personal loan could be anywhere between 14% and 25%. 

What are others charges?

• Non-refundable Processing fees normally 5-10%. You can negotiate on this.
• Prepayments charges normally 5-10% on outstanding amount after 6-12 months.
• Payment Protection Insurance (PPI) charges, negotiate on this.
• Service TAX.

Always calculate Total Amount Repayable (TAR) while taking personal loan. Try to take loan for minimum tenure so that less interest is paid towards it.

• As far as possible try to avoid personal loan for Travel, shopping or any other unnecessary things.
• For Emergency Purpose, you should have Emergency Fund & not the Personal Loans.
• DON’T go for a personal loan without considering alternatives.

7 Important points to be noted before using credit cards

1. Before choosing a credit card know all the features like interest rates, repayment options, grace period, credit limit, Annual charge and other terms and conditions. Also look for best offers like reward points, cashback etc.

2. Stay in your credit limit and Don't spend more than you can afford to pay on a monthly basis. Try to clear all debts each month and avoid making minimum payments only.

3. If you use your credit card to make everyday purchases, make sure you pay them on a monthly basis. Don’t withdraw cash using credit cards because it will charge heavy fees in the name of Cash Advance Fees.

4. Most important keep track of your spending's, Check your online account frequently.

5. Having only one credit card can help you manage your spending and will be easy to track. Avoid multiple credit cards.

6. In case your card is lost or stolen, keep an accurate record of the Account number, Issuer’s name, Date of birth and other security information’s. And most important keep helpline numbers.

7. Before closing a credit card make sure you pay off all the debts otherwise latter it may create unnecessary inconvenience.

Income Tax Benefits on Home Loans

Let’s try to understand the tax benefits on home loans in India. Home Loans are one of a better ways for saving on your taxes for a longer duration.

In India you get double TAX benefits on Home Loan.

Tax Benefits on Principal

Under Section 80C, you can get tax deductions up to Rs.1 lakh every year on the principal amount paid.

You can claim Stamp Duty & Registration charges also under Section 80C.

Tax Benefits on Interest

Under Section 24(b), interest component of EMI is eligible for deduction from taxable income if the loan is on a property/house that you are currently living in. you can claim maximum Rs.1.5 lakhs in every financial year.

Loan taken for construction or repairs is also eligible for deductions under Section 24(B).

Example


Suppose your total taxable income is Rs. 4,00,000.
Principal repayment is Rs. 1,50,000 and total Interest Payable is Rs. 1,80,000.


The total deduction allowed is Rs. 2,50,000 (1+1.5Lacs) under above mentioned sections. Hence now your total taxable income becomes only Rs. 1,50,000 (4 - 2.5Lacs).


Take a Joint Home Loan, Buy House with parents/Siblings or spouse as joint owners so that you can get double tax benefits.

Income Tax Benefits on Home Loans

Let’s try to understand the tax benefits on home loans in India. Home Loans are one of a better ways for saving on your taxes for a longer duration.

In India you get double TAX benefits on Home Loan.

Tax Benefits on Principal

Under Section 80C, you can get tax deductions up to Rs.1 lakh every year on the principal amount paid.

You can claim Stamp Duty & Registration charges also under Section 80C.

Tax Benefits on Interest

Under Section 24(b), interest component of EMI is eligible for deduction from taxable income if the loan is on a property/house that you are currently living in. you can claim maximum Rs.1.5 lakhs in every financial year.

Loan taken for construction or repairs is also eligible for deductions under Section 24(B).

Example


Suppose your total taxable income is Rs. 4,00,000.
Principal repayment is Rs. 1,50,000 and total Interest Payable is Rs. 1,80,000.


The total deduction allowed is Rs. 2,50,000 (1+1.5Lacs) under above mentioned sections. Hence now your total taxable income becomes only Rs. 1,50,000 (4 - 2.5Lacs).


Take a Joint Home Loan, Buy House with parents/Siblings or spouse as joint owners so that you can get double tax benefits.

Does claim settlement ratio matters?

While deciding on a term plan, the biggest point which a person looks at is the Claim settlement ratio. Term insurance is not about money but it’s about peace of mind that our loved ones are safe and secure incase we are not here to look after them, hence while taking term plan one want to be 100% confirm that their claim does not get rejected under any worst scenario. According to claim settlement ratio published by IRDA we can see LIC in the top of the list.

Claim Settlement Ratio Data from IRDA report 2010-11

So do I buy term plan from LIC only?

Not necessary - IRDA report with its claim settlement ratio part, no where mentions it to be DEATH CLAIM SETTLEMENT RATIO. Almost 90% of the LIC policies are endowment / moneyback policies which are settled very nicely by LIC. In some of the cases, final amount post dated cheque reaches the client even before the last date of policy. Most of these endowment and moneyback policies are running for last so many years so they get settled very smoothly. So this factor should also be kept in mind that its not DEATH CLAIM SETTLEMENT ratio but just claim settlement ratio.

Can I buy term plan from other insurance providers?

Yes you can - if you have filled your form properly and provided accurate information / documentation while applying for the insurance, and later on the claim is GENUINE, then there is no way on earth that claim will not be settled, Irrespective of the claim settlement ratio.

You don’t have to worry for taking term insurance from LIC or any private companies because all are regulated by IRDA. Just be honest and provide all information’s correctly. Go for any company that you trust, more or less all are same.

Does claim settlement ratio matters?

While deciding on a term plan, the biggest point which a person looks at is the Claim settlement ratio. Term insurance is not about money but it’s about peace of mind that our loved ones are safe and secure incase we are not here to look after them, hence while taking term plan one want to be 100% confirm that their claim does not get rejected under any worst scenario. According to claim settlement ratio published by IRDA we can see LIC in the top of the list.

Claim Settlement Ratio Data from IRDA report 2010-11

So do I buy term plan from LIC only?

Not necessary - IRDA report with its claim settlement ratio part, no where mentions it to be DEATH CLAIM SETTLEMENT RATIO. Almost 90% of the LIC policies are endowment / moneyback policies which are settled very nicely by LIC. In some of the cases, final amount post dated cheque reaches the client even before the last date of policy. Most of these endowment and moneyback policies are running for last so many years so they get settled very smoothly. So this factor should also be kept in mind that its not DEATH CLAIM SETTLEMENT ratio but just claim settlement ratio.

Can I buy term plan from other insurance providers?

Yes you can - if you have filled your form properly and provided accurate information / documentation while applying for the insurance, and later on the claim is GENUINE, then there is no way on earth that claim will not be settled, Irrespective of the claim settlement ratio.

You don’t have to worry for taking term insurance from LIC or any private companies because all are regulated by IRDA. Just be honest and provide all information’s correctly. Go for any company that you trust, more or less all are same.

Confirmation message for Successful Efiling of Income Tax Return

After doing Efiling through TaxSpanner.com, I got below mentioned mail from donotreply@incometaxindiaefiling.gov.in along with ITR-V form attached. After this step you just need to sign the form and send it to address mentioned in this mail. If you have lost this mail or if you are in search of this mail, this may help you.

From : donotreply@incometaxindiaefiling.gov.in
Subject : Confirmation message for Successful Efiling ReturnReference : ITRV Ack No: 2262515602XXXXX for PAN XXXPCX145X of Assessment year 2011-2012

Dear Taxpayer,

1.    Thank you for using the Electronic filing of Income Tax Return facility provided by the Income Tax Department on the website https://incometaxindiaefiling.gov.in.
2.    Your ITR-V/ Acknowledgement is now being sent to you as a pdf document.
3.    To open this file, you need Adobe Acrobat Reader. If you do not have Adobe Acrobat Reader, please visit the following link to download it: www.adobe.com/products/acrobat/readstep2.html.
4.    Your ITR-V/ Acknowledgement is protected by a password for your security. Please enter your PAN (in small letters) and the Date of Birth or Incorporation (in ddmmyyyy format), in combination, as the password, to view your ITR-V/Acknowledgement.  Note that your password is in lower case only.
For example,if your pan is AAAAA0000A and the date of birth is 10-Jan-2008, then the password will be aaaaa0000a10012008
5.    Please furnish the signed and verified Form ITR-V to the Income-tax Department by mailing it to Income Tax Department - CPC, Post Bag No - 1 , Electronic City Post Office, Bangalore - 560100, Karnataka, BY ORDINARY POST OR SPEEDPOST ONLY within a period of 120 days from the date of transmitting the data electronically.
6.    ITR-V sent by Registered Post or Courier will not be accepted. Form ITR-V shall not be received in any other office of the Income-tax Department or in any other manner.
7.    The acknowledgement of the receipt of the ITR-V at Income Tax Department - CPC, Bangalore will be sent to you at the same e-mail address xxxx@xxxx.com.
8.    Please add donotreply@incometaxindia.gov.in to your white list / safe sender list. Else, your mailbox filter or ISP (Internet Service Provider) may stop you from receiving your ITR-V through your e-mail account.
9.    In case you are unable to open the document, please contact ask@incometaxindia.gov.in providing the document along with pan number and assessment year.
10.    If you did not E-file this Income Tax Return but have received this email, please send an email to ask@incometaxindia.gov.in asking for your registration to be cancelled.

Sincerely, For and on Behalf of the Income Tax Department,Administrator

LIC vs Private insurer

If we conduct a debate between people who are in favor of LIC and people who in favor of private insurance companies, I am sure it will go on and on. Both have their own pros and cons. When it comes to pure term insurance, one want to be 100 per cent assured that their claim do not get rejected in any worst scenario. After all life insurance is not about money, it’s about a peace of mind that our loved ones are safe and secured incase we are not here to look after them.

One might be in dilemma which one to select for their life insurance? Whether to go for LIC or to go with private insurer. Various forums / blogs gives different suggestions hence it becomes more difficult to take a decision.

LIC:

Pros

• LIC is having 52 years of experience and a govt of India enterprise, fully trustable all over India.
• High claim settlement ratio.

Cons

• Mostly promoting only traditional plans (investment cum insurance plan) and not term insurances.
• Online term insurance is not yet available.
• Term insurances are more costly (almost double) compare to private insurer.

Private insurer:

Pros

• Online term insurance is easily available.
• Provide high risk cover with nominal premium.

Cons

• Though private insurers are just 10 years old in market, they have occupied 31% of the market shares and rapidly growing.
• Claim settlement ratio is less than LIC, Normally claim settlement ratio greater than 90% is considered as good.

You don’t have to worry for taking insurance from LIC or any private companies because all are regulated by IRDA. Just be honest and provide all information’s correctly. Go for any company that you trust, more or less all are same. 

LIC vs Private insurer

If we conduct a debate between people who are in favor of LIC and people who in favor of private insurance companies, I am sure it will go on and on. Both have their own pros and cons. When it comes to pure term insurance, one want to be 100 per cent assured that their claim do not get rejected in any worst scenario. After all life insurance is not about money, it’s about a peace of mind that our loved ones are safe and secured incase we are not here to look after them.

One might be in dilemma which one to select for their life insurance? Whether to go for LIC or to go with private insurer. Various forums / blogs gives different suggestions hence it becomes more difficult to take a decision.

LIC:

Pros

• LIC is having 52 years of experience and a govt of India enterprise, fully trustable all over India.
• High claim settlement ratio.

Cons

• Mostly promoting only traditional plans (investment cum insurance plan) and not term insurances.
• Online term insurance is not yet available.
• Term insurances are more costly (almost double) compare to private insurer.

Private insurer:

Pros

• Online term insurance is easily available.
• Provide high risk cover with nominal premium.

Cons

• Though private insurers are just 10 years old in market, they have occupied 31% of the market shares and rapidly growing.
• Claim settlement ratio is less than LIC, Normally claim settlement ratio greater than 90% is considered as good.

You don’t have to worry for taking insurance from LIC or any private companies because all are regulated by IRDA. Just be honest and provide all information’s correctly. Go for any company that you trust, more or less all are same. 

Understand House Rent Allowances (HRA)

House Rent Allowances is commonly known as HRA, it’s a kind of gift of TAX saving for salaried person under section 10(13A). Here HRA amount is exempted from TAX.

Who is Eligible for HRA?

An Individual who satisfies all 3 conditions.

• HRA must be included in your salary component
• You are staying in the rental house
• Your rent is more than 10% of your BASIC salary

How to Calculate HRA?

The minimum of following 3 will be considered as HRA deduction.

• HRA received from your employer in respect of the period during which rental accommodation is occupied.
• Rent paid minus 10 per cent of salary
• An amount equal to 40% of salary. 50% in case of Metro City (Mumbai, Kolkata, Delhi or Chennai)

Example:

Let’s assume you pay Rs.5000 as rental in Mumbai. You get Rs.3000 as HRA and Rs.10,000 as your basic salary.

• HRA received by employer: Rs.3000
• Rent paid minus 10 per cent of salary: 5000 - 1000 (10% of 10,000) = Rs.4000
• 50% of salary: Rs.5000

So the minimum of the above three values which Rs.3000 is the permissible for HRA deduction per month i.e. Rs.36,000 annually

• If you are living in your own house than you cannot claim HRA even if you get HRA allowance from your employer.
• If your house is in your parents or spouse name than you can claim HRA by showing that you are living on rent.
• If you have taken a home loan to buy a house and you are living in rental house than you can claim HRA & home loan tax benefits both.
• If you are not employee (self employee/ business owner) & living in rental house, you can still claim HRA under section 80GG

Understand your CTC and Salary

It is important to understand the difference between Cost To Company (CTC) and take home salary. I personally never understood my CTC. When I got my first offer of 1.32 Lakh per annum i was thrilled of getting Rs. 11,000 per month but I got disappointed after seeing my first month’s salary. It was just Rs. 8,500 there was a much difference between CTC and Salary. A good CTC may not be as good as u think, always ask HR what will be your net take home salary before accepting an offer.

Your Income Tax is based on the Gross Salary. Check your salary slip or Form 16, where all the deductions happened.


Understand your CTC


Cost to company = Gross Salary + Other Benefits.
Gross salary = Basic + HRA + Allowance.
Net salary in hand = Gross Salary - (PF, Income Tax, Professional Tax).

Basic Salary
This is the fixed and major part of your CTC. It is the complete amount that becomes a part of your in-hand salary and ofcourse it is a taxable income.

Allowances
Your CTC will include allowance like House rent allowance, conveyance allowance; leave travel allowance, Special allowance etc. Some of these allowances are tax free up to a certain limit and some of them are dependent on your actual spending.

Reimbursements
This is the portion of your CTC, paid as reimbursements through billed claims like Medical Reimbursements, Mobile/Telephone Bills, Meal coupons etc. There is a maximum limit set to these components and are paid when you submit your bills. These are usually tax free upto certain limit.

Deductions
Deductions like Provident Fund, Gratuity becomes a part of your CTC but you do not get them as part of your in-hand salary.

Bonus
Most companies include the maximum amount that can be paid as bonus, to the CTC. It could be in the form of Fixed Annual Bonus, Productivity Linked Variable Bonus etc.

Taxes
It’s very important to understand your tax liabilities though it is not mentioned in your CTC.

How to save TAX in india

Understanding your salary and TAX benefits is not much difficult, though you may find it boreing but it is important. The basic funda of TAX planning is, Out of your gross salary(Taxable income) if you invest in certain financial products that income becomes not taxable.

Who need to pay TAX and how much?
Understand TAX bracket of India 2011-2012

Tax payers	Income Tax slab (in Rs.)	TAX
General	0 to 1,80,000	No tax
	1,80,001 to 5,00,000	10%
	5,00,001 to 8,00,000	20%
	Above 8,00,000	30%
Women	0 to 1,90,000	No tax
	1,90,001 to 5,00,000	10%
	5,00,001 to 8,00,000	20%
	Above 8,00,000	30%

If you fall in above TAX bracket, these two questions may arise in your mind.

• How much do I invest to save TAX?
• Where do I invest for TAX saving?

In India, Tax planning is broadly divided into two categories.

Tax Saving under Section 80C

The maximum reduction available in Section 80C is Rs. 1,00,000 in any financial year. This is the most common among salaried individual. You can take completed benefit of this section upto Rs. 1 lakh, investment made beyond that is not considered.

Investments made in following products are considered for Section 80C reduction.

• Public Provident Fund (PPF)
• Voluntary Provident Fund (VPF)
• Employer Provident Fund (EPF)
• National Saving Certificate
• Accrued interest on National Saving Certificate
• Life Insurance Premium
• Tuition fees paid for children's education (maximum 2 children)
• Principal component of home loan repayment
• Stamp Duty & Registration charges
• Pension Funds – Sec 80CCC
• 5-Year fixed deposits with banks and Post Office
• Equity Linked Savings Schemes (ELSS)
• Senior Citizens Saving Scheme

Tax Saving beyond Section 80C

If you want to invest more than Rs. 1 lakh (i.e. the reductions under Section 80C are not enough to minimize the general tax liability), then consider this section.

Sec 80D - Medical Insurance premium deduction

An individual who pays medical insurance premium for self or spouse/dependent children is allowed a deduction of upto Rs. 15,000 pa under section 80D. An additional deduction of up to Rs. 15,000 pa is allowed for premium payment made for parents. In case the parents are senior citizens, then the maximum deduction allowed is Rs. 20,000 per year.

Sec 80G - Deduction in respect of donations to certain funds, charitable institutions

Donation given to certain funds, charitable institute is exempted from TAX.

Sec 80GG - Deductions in respect of rents paid (If you are not getting HRA)

If HRA is not included in the salary structure then the salaried individuals can asset rent paid by them for residential lodging. 

Sec 24B - Home Loan Interest Payment

Interest payments of upto Rs.150,000 pa are entitled for reduction under Section 24. Whether it is your first home or second home you can take benefits of this. If you and your spouse are both working then there are double tax benefits to be availed by taking a home loan.

Sec 10 (13A) - House Rent Allowance – HRA

HRA should be incorporated in the salaries of individuals who stay in rented houses.

Exemption of Leave Travel Allowance (LTA) or Leave Travel Concession (LTC) (For Salaried)

Transport allowance discharge upto Rs. 800 per month.

Others -

Sec 80DD - Deduction upto Rs. 40,000 pa in respect of maintenance including medical treatment of handicapped dependent.

Sec 80DDB - Deduction upto Rs.15,000 pa in respect of medical treatment of dependant.

Sec 80E - Deduction upto Rs. 25,000 in respect of interest on loan taken for higher education

Sec 80CCF – Tax Saving infrastructure Bonds

Food coupons can release up to Rs.60,000 per year from tax. Example Sodexo vouchers.

Gift Tax

At the end of the year when you are in hurry, don't rush for investment in any product which others/insurance agent advice to you. Take adequate time for TAX planning, do some homework of your own like read reviews on net, ask financial experts on various financial forum etc. Do investment according to your need, for short term investment ( <= 5 years) you can go for ELSS or Infrastructure Bonds etc, for long term you can go for PPF, Home loan etc.