EPF e-Passbook - Online Employee Provident Fund Balance

Greetings ! Now  EPF account holders  can check Employee provident fund balance online using the new e-passbook service by EPFO website. They has introduced a new concept called “EPF Account Passbook” , which allows EPF Account holders to download their EPF Balance passbook at any time e.g. you can now do EPF balance enquiry each month and see how its increasing.

Follow simple steps to register and enjoy the facility:

1. Register on the site with your name, mobile, DOB and document (e.g. PAN) information
2. Generate PIN and confirm it (received on registered mobile)
3. Login with registered Document number and mobile (no username & password)
4. Download EPF Passbook after entering your PF Account number

Few points to remember:

1. One mobile number per registration, though multiple PF accounts
2. One Account per establishment e.g. 2 accounts possible for Delhi & Karnataka but both are not possible under Delhi
3. Maximum 10 accounts can be viewed
4. Inactive Account details not available
5. Multiple Id can be created with as many Documents you register e.g. each with PAN & Driving License

References:  http://www.jagoinvestor.com/2012/08/epf-passbook-employee-provident-fund-balance-online.html

SBI offers lower rates to Old Home Loan Borrowers

State Bank of India's old home loan borrowers have a reason to rejoice. The bank has decided to allow these borrowers to switch over to the new floating rates that are lower, said a bank official.

Borrowers who have taken loans linked to SBAR (State Bank Advance Rate or the prime lending rate) are paying as much as 2-3 percentage points more than existing floating rates that are linked to the Base Rate.

This is because the Base Rate is lower than the SBAR. SBI's Base Rate is currently at 10 per cent, while the SBAR is 14.75 per cent. Besides, the bank has also reduced the spread it charges over the Base Rate for home loans. Because of this, new home loan rates have moved southwards, said the official.

There is no restriction on the tenure or the amount of the loan for customers to switch over. The bank is charging a fee of 1 per cent of the outstanding amount to switch to the new rate

The current floating rates are:

• 10.5 per cent for loans up to Rs 30 lakh, 
• 10.75 per cent for loans between Rs 30 and 75 lakh, and 
• 11 per cent for loans above Rs 75 lakh.

Those borrowers who took a home loan even a year ago are paying higher rates. In some cases, the difference is as high as 3 percentage points. So, in the interest of fair practices and transparency, we are offering the current floating rates to all our customers. On an average, the benefit to old customers could work out to be more than 1 percentage point.

For switching over, the only condition is that the customer should not be a defaulter. If so, then he or she can pay the default amount and switch.

Customers have been enquiring about shifting loans to other lenders given the higher rates, and this is one reason why SBI came up with such an offer, the official said. 

Bajaj Allianz charges heavily even after serving minimum period

Beware of any ULIP plans, especially from Bajaj Allianz. You will feel cheated when you will be in need of money, and want to get money from them.

While purchasing the policy their agents tell that you can withdraw the money after 3 years of premium. But the thing they don't tell is that you can't withdraw your own money even after that (minimum 20 years!). You should have been read your 60 pages documents to verify, and to catch their agents lies.

Lets take a scenario of Bajaj Allianz ULIP as follow:

• 15,000/- is the premium for a year
• 3 years is the Minimum number of years you have to pay
• 60,000/- you paid for 4 years (minimum period served)
• Say as per 9.0 pa interest (FD rates), you would have earned 22,000/- interest without any risk.
• Total Investment : 82000/-

Now let see what they got,

• -10,000 maintenance charges for 4 years
• -8,000 for surrender charges (they never tell you about that)
• -22,000 As market neither did good nor bad (only Bajaj Allianz got money, not you)
• YOUR TOTAL LOSS  = Bajaj Allianz Profit =  40,000/-

Lets say market doesn't change much (went up and down in 4 years). What you got:

• 60,000 you paid, and as per interest of 9 pa, this amount should have around 82,000 by now.
• They have taken 18,000 from you (off course they have to pay their employee salary from your pocket)
• You get 60,000 - 18,000 = 42,000/-

How much You Lost :

• 82000 - 42000 = 40,000/- (50% of your money)

I've invested and studied many ULIPs plan, and suggest you not to invest in any ( and never in Bajaj Allianz).

IFCI Tax saving bonds closing on November 14, 2011

Last few days are left before the Closure Date of the Series III Issue of Tax Saving Infrastructure Bonds of IFCI Limited that opened on September 21, 2011 (scheduled to close on November 14, 2011 - unless decided to pre-close). 

The Long Term Infrastructure Bonds carry tax benefits under Section 80 CCF of Income Tax Act, 1961 up-to an investment of Rs.20,000/- during the FY 2011-12. The four options available for investment and other key highlights of the Issue are as under :

Option I	Option II	Option III	Option IV
10 Years	10 Years	15 Years	15 Years
Cumulative	Annual	Cumulative	Annual
8.50% p.a.	8.50% p.a.	8.75% p.a.	8.75% p.a.
Buyback option at 5th and 7th year end		Buyback option at 7th, 10th and 12th  year end
1.   Bonds can be applied-for in physical or dematerialized form 2.   The face value and Issue price per bond is Rs. 5,000/- 3.   Bonds shall be listed on Bombay Stock Exchange (BSE) 4.   There is lock-in period of 5 years after which they can be traded/transferred 5.   Only Resident Indian Individuals (major) / HUF can apply.

For further details including downloading of the Application Form, Information Memorandum etc., you may visit the website www.ifciltd.com or click at http://www.ifciltd.com/IFCIBonds/InfrastructureBonds/CurrentIssue/tabid/225/Default.aspx

Should you require any further clarification, feel free to write at infrabonds@ifciltd.com.

Also read : http://timir126.blogspot.com/2010/10/idfc-long-term-infrastructure-bonds-ipo.html

280 लाख करोड़ का सवाल है

280 लाख करोड़ का सवाल है .....

भारतीय गरीब है लेकिन भारत देश कभी गरीब नहीं रहा"* ये कहना है स्विस बैंक के डाइरेक्टर का. स्विस बैंक के डाइरेक्टर ने यह भी कहा है कि भारत का लगभग 280 लाख करोड़ रुपये (280 ,00 ,000 ,000 ,000) उनके स्विस बैंक में जमा है. ये रकम इतनी है कि भारत का आने वाले 30 सालों का बजट बिना टैक्स के बनाया जा सकता है.

या यूँ कहें कि 60 करोड़ रोजगार के अवसर दिए जा सकते है. या यूँ भी कह सकते है कि भारत के किसी भी गाँव से दिल्ली तक 4 लेन रोड बनाया जा सकता है. ऐसा भी कह सकते है कि 500 से ज्यादा सामाजिक प्रोजेक्ट पूर्ण किये जा सकते है. ये रकम इतनी ज्यादा है कि अगर हर भारतीय को 2000 रुपये हर महीने भी दिए जाये तो 60 साल तक ख़त्म ना हो. यानी भारत को किसी वर्ल्ड बैंक से लोन लेने कि कोई जरुरत
नहीं है. जरा सोचिये ... हमारे भ्रष्ट राजनेताओं और नोकरशाहों ने कैसे देश को लूटा है और ये लूट का सिलसिला अभी तक 2011 तक जारी है. इस सिलसिले को अब रोकना बहुत ज्यादा जरूरी हो गया है. 


अंग्रेजो ने हमारे भारत पर करीब 200 सालो तक राज करके करीब 1 लाख करोड़ रुपये लूटा. मगर आजादी के केवल 64 सालों में हमारे भ्रस्टाचार ने 280 लाख करोड़ लूटा है. एक तरफ 200 साल में 1 लाख करोड़ है और दूसरी तरफ केवल 64 सालों में 280 लाख करोड़ है. यानि हर साल लगभग 4.37 लाख करोड़, या हर महीने करीब 36 हजार करोड़ भारतीय मुद्रा स्विस बैंक में इन भ्रष्ट लोगों द्वारा जमा करवाई गई है. भारत को किसी वर्ल्ड बैंक के लोन की कोई दरकार नहीं है. सोचो की कितना पैसा हमारे भ्रष्ट राजनेताओं और उच्च अधिकारीयों ने ब्लाक करके रखा हुआ है. हमे भ्रस्ट राजनेताओं और भ्रष्ट अधिकारीयों के खिलाफ जाने का पूर्ण अधिकार है. हाल ही में हुवे घोटालों का आप सभी को पता ही है - CWG घोटाला, २ जी स्पेक्ट्रुम घोटाला , आदर्श होउसिंग घोटाला ... और ना जाने कौन कौन से घोटाले अभी उजागर होने वाले है ........


इसे पूरा भारत  पढ़े ... और एक आन्दोलन बन जाये ... सदियो की ठण्डी बुझी राख सुगबुगा उठी, मिट्टी सोने का ताज् पहन इठलाती है। दो राह, समय के रथ का घर्घर नाद सुनो,सिहासन खाली करो की जनता आती है। जनता? हां, मिट्टी की अबोध् मूर्ते वही, जाडे पाले की कसक सदा सहने वाली, जब् अन्ग अन्ग मे लगे सांप हो चूस् रहे है ...

IDFC : Long Term Infrastructure Bonds open for 2011

[Update] IDFC bonds for 2011 is opened again on 21st Nov'2011 and closing date is 16th Dec'2011.
This year IDFC is offering interest rate of 9% on both the series.

Specific terms for each series of Tranche 1 Bonds ( details )

Series	1	2
Frequency of Interest payment	Annual	Cumulative
Face value (Rs) per Tranche 1 Bond	Rs. 5,000	Rs. 5,000
Issue Price (Rs) per Tranche 1 Bond	Rs. 5,000	Rs. 5,000
Buy-back facility	Yes	Yes
Buy-back amount	Rs5,000 per Tranche 1 Bond	Rs7,695 per Tranche 1 Bond
Buy-back intimation period	The period beginning not before nine months prior to the Buy-back Date and ending not later than six months prior to Buyback	The period beginning not before nine months prior to the Buy-back Date and ending not later than six months prior to Buyback
Tenor	120 months from the Deemed Date of Allotment	120 months from the Deemed Date of Allotment
Interest Rate	9% p.a.	N.A
Maturity Amount	Rs5,000 per Tranche 1 Bond	Rs11,840 per Tranche 1 Bond
Yield on maturity	9 %	9% compounded annually
Yield on Buyback	9 %	9% compounded annually

[Last Year]
As I specified about Long Term Infrastructure Bonds investment this financial year previously, IDFC has open the IPO for the same which is closing on 22nd October. IDFC is looking to raise up to 3,400 crore this financial year. The bonds come with a lock-in period of five years and a maturity of 10 years, which has been issued in 4 different series:

• Series 1 - Pays 8% interest annually.
• Series 2 - Pays 8% interest annually as well, but the interest will keep getting reinvested into the bond.
• Series 3 - Pays 7.5% interest annually, but comes with a buyback option.
• Series 4 - Pays 7.5% interest which gets reinvested into the bond, and comes with a buyback option.

Note, in series 3 and 4, Buyback option is available after "5 years + 1 day" from the deemed date of allotment.
GOI owns 20.08% in the company, so IMO it is very much safe for the investments. ICRA has given the IDFC bonds an LAAA rating, which is the highest rating that an infra bond can get.

Fixed Deposits Interest rate comparison

Updated Regularly - Latest, recent

Banks started increasing Interest Rates on the fixed deposits again.  Most of them are already effective if you open a new one. Here are the links to have a quick view:

• SBI
• HDFC
• Axis
• ICICI
• Kotak Mahindra
• HSBC
• Citibank
• Standard Chartered
• IDBI
• Corporation Bank
• Syndicate Bank
• PNB Banks
•  seems to be giving the highest interest as of now.

Other Sources: http://www.maduraidirectory.com/bandf/interest.php

File Income Tax yourself

It is time to file income tax for the last financial year. There are many online & offline services to file return on behalf of you just in exchange of 250-300 INR. However, people need to run behind them even after they file the tax for the acknowledgement and all, which takes quite time, though you free yourself from the hassle of financial complexity to understand Form-16 and information except salaried income, like income from other sources, short term gains, TDS (tax deducted at sources), income from Employee stocks options etc.

However, If you pay a little more attention to the article, you will find that filing Tax is not that complex either. Income Tax of India, provies xls utiilities supported by different Macros, which automatically do the validations for your inputs & provide a list of options for a certain fields with validate & non-validate information. Tax can be filed using this facilities in the following steps:

1. Open https://incometaxindiaefiling.gov.in/
2. Go to e-filling A.Y. 2010-11 => Individual, HUF
3. Go to "Download Return Preparation Software" section and download the relevant form e.g. ITR-1 for Salaried
4. Be ready with Form-16 (salary info, TAN, Employer info etc), TDS etc forms, if Any & PAN Card number
5. Fill up the excel and do the validation before moving to next sheet in the xls
6. Generate xml after validating all the fields.
7. Upload the XML to the same site.
8. A version of the IT return form will be given to you.
9. If form is not submitted with a valid digital signature, take a printout
10. Mail it to the CPC office, after putting
11. Check for a confirmation at given email id as well
12. Your acknowledgement will be mailed to you later.

Related:

Enabling Macro in xls : http://office.microsoft.com/en-us/excel-help/change-macro-security-settings-in-excel-HP010096919.aspx

New tax slabs - Budget 2010-11

Greetings from our FM! Tax slabs are revised again this year resulting in paying less tax now.
"Over and above Rs 1 Lakh deduction on tax savings, an additional deduction of Rs 20% for investment in Long-Term Infrastructure Bonds would be allowed", Pranab Mukheree said.

--------------------------------------------
|  Males         |  Females       |  tax  |
--------------------------------------------
| Upto 1.6 L    | Upto 1.9 L   |  NIL |
| 1.6 L to 5 L  | 1.9 L to 5 L  |  10% |
| 5 L to 8 L     | 5 L to 8 L     |  20% |
| Above 8 L    | Above 8 L    |  30% |
--------------------------------------------

Few more links
http://in.budget.yahoo.com/2010/commentary
http://economictimes.indiatimes.com/Tax/Tax-impact-for-resident-individuals-and-HUF/articleshow/5619497.cms

Your saving account will now earn more

Withdrawing a big amount from the saving account even a few days before the month end, results in loss in interest the month. Now Greetings for saving account holders from RBI (Reserve Bank of India), who announced on this Friday that banks should start calculating interest on daily basis for saving accounts effective from 01st April'10.

The move will enable saving account holders in earning better interest rates since banks currently calculate interest on these accounts on the lowest available balance from 11th and the last date of a month.

Though, earlier banks had urged RBI to postpone the move. Indian Banks Association chairman MV Nair had said "We requested them to either reduce the savings rate or postpone the implementation. It will affect our margins and profit"

RBI said in a notification "We advise that payment of interest on savings accounts may be made by banks on a daily product basis with effect from April 1", which also asks banks to ensure a smooth transition and work out the modalities in this regard.

Now, one point need to be noted here that, currently interest rates on saving accounts are de-regulated, barring up to Rs 2 lakh. The RBI only administer interest rates on saving bank deposits up to Rs 2 lakh, and for the deposits above this amount, banks are free to give any interest rates.

Source
http://beta.profit.ndtv.com/news/show/now-savings-accounts-to-earn-interest-on-daily-basis-26569

Have you enabled Auto-Sweep?

Saving account is a special place for day to day transaction like ECS, salary, loan & credit card payments etc which keep money flowing bidirectional. It carries interest rate of 3% to 3.5%. The alternate way to gain higher interest rate has some schemes with some locking period, which are like PPF, NSC, LICs, bonds, Fix & recurring deposits and Mutual funds with market risks associated with it. Traditional fix deposits provide an interest rate of 6-7%.
But as major chunk of our money is kept in saving account attracting interest of only 3%, one can opt for a scheme which give benefit of Savings Account + Fix deposits, called Auto-sweep.

What is 'Auto Sweep'?
It is combination of saving & fixed deposit. It interlinks saving and deposit accounts.

How 'Auto Sweep' works?
A customer specifies the amount to be kept in the savings account or agrees to the minimum amount as decided by banks for auto sweep. An amount above this specified limit, called as threshold limit, is then automatically transferred to the customer’s fixed deposit account, which is attached to the savings account. Thus, the money does not remain idle in this arrangement and also earn a higher rate of return for the customer. Whenever the customer wants to withdraw money greater than what he/she has in the savings account, the excess is reverse-swept from his/her fixed deposit account. In this case, the customer earns interest as per the prevailing fixed deposit rates for that particular period. In simple words

1. You decide the maximum amount that you want in your account. This is also called the threshold limit.
2. The amount for which the FDs need to be created, is decided
   
3. The tenure of these FDs, is decided.
   

After this, technology takes care of everything!

An Example?
Let’s understand this with the help of an example.
Vishnu deposits Rs 30,000 in his ‘Auto Sweep’-enabled savings account on Jan. 1, 2008. The defined threshold limit for his ‘Auto Sweep’ account is Rs 10,000 while the minimum balance required by the bank is Rs 5,000. So, out of his total deposit, Rs 20,000 will go to the fixed deposit account which offers a higher rate of interest. (Presently, one-year deposits carry an interest rate of 8 per cent.) Vishnu withdraws Rs 15,000 on Jan. 1, 2009. Since he is already having Rs 10,000 in his savings account (assuming that he has not done any transaction in this period) and he has to maintain a minimum balance of Rs 5,000, he requires another Rs 10,000, which will be taken from his fixed deposit account. He earns 8 per cent on the deposit of Rs 10,000 (remaining amount in the fixed deposit account) unlike in normal savings account where he earns only 3.5 per cent. In case Vishnu withdraws all his deposits after a period, say, 5 months, he would be entitled to get the prevailing deposit rates for 5 months along with certain penalty (usually 1%), which in any case will be higher than 3.5 per cent, the current savings account rate.

Any Disadvantages?

• Amount must be transferred for a minimum period to avoid any penalty. E.g. If money stays at-least 3 months out of minimum period of 1 year, one may go for it.
• Some banks calculate simple interest in 'Auto sweep' unlike of cumulative interest on Fixed deposits.
  

So what is the conclusion?
With Auto Sweep facility, investors get the best of both worlds – they enjoy the liquidity of savings account and at the same time earn extra return from fixed deposit account. This is one of the best way to channelize and utilize one’s unused savings, especially meant for salaried people who often end up with some idle money in their savings accounts. So, if your savings accounts are still not activated for the auto sweep facility, ask your bank officials to enable it for the threshold limit as desired by you or to the bank’s minimum threshold limit.

Other sources?

• ICICI bank http://www.icicibank.com/pfsuser/temp/tcbank_rules_regu.htm