The Union Cabinet on Thursday approved a new set of direct tax rules that proposes to raise income tax exemption limit from 1.6 lakh to 2 lakh, leaving more money in the hands of individuals, and a lower tax rate for companies. The Union Cabinet on Thursday approved a new set of direct tax rules that proposes to raise income tax exemption limit from 1.6 lakh to 2 lakh, leaving more money in the hands of individuals, and a lower tax rate for companies. The much-awaited Direct Taxes Code, or DTC Bill, which seeks to replace the nearly 50-year-old income tax law, is likely to be introduced in Parliament on Monday and may then be referred to a select committee of members of both houses of Parliament. Senior citizens and women will enjoy a higher exemption of up to 2.5 lakh. There will be no surcharge or cess on companies, thereby bringing the corporate tax rate to 30% from present 34%. The new code proposes three income tax slabs—income of up to 2-5 lakh will face 10%, 5-10 lakh will attract 20% and income over 10 lakh will face tax at the rate of 30%. The housing loan exemption of 1.5 lakh would also be available to individual taxpayers on the interest component. However, the government proposes to raise the minimum alternate tax (MAT) on book profits to 20% from current 18%.  There will not be any change in the Capital Gain tax structure. It’s really a glad news for Capital market investors and traders as the proposed tax structure would have been a big set back. The much-awaited Direct Taxes Code, or DTC, Bill, which seeks to replace the nearly 50-year-old income tax law, is likely to be introduced in Parliament on Monday and may then be referred to a select committee of members of both houses of Parliament. Senior citizens and women will enjoy a higher exemption of up to 2.5 lakh. There will be no surcharge or cess on companies, thereby bringing the corporate tax rate to 30% from present 34%.

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Current market system people who believe that all the investments are correct and gives return at the right time.  But in the actual cases most of the investment has its on hidden problems. All are think that the initial investments are the doubled the next year or at the next time but unfortunately that never happened .ac cording to the study of the market it gives 17-to20% of growth at a time of 15to 20 years of saving. Most of the cases the agent should give the wrong idea and the customer think that they are right, so such cases customer should consult a finance consulter and clarify whether the investment is right or wrong.

Most of the cases the agent should have only one aim to achieve their huge commission money so they are try to convince  that all are right and we should get something really great. But the time of purchase we are become the real fool and get the great burden. So in every investment we should very care full other wise it will bit e like a snake.

So the investments are really conscious thing and should keep it on that way. If you are in the right track you are the smoothen driver in the whole investments ways.

According to RBI news the inflation will last for few months. The RBI said that the demands of product are the one of the major reason for the inflation causes. The product demand ratio is still perusing higher. so should wait or try to down the demand ratio.

The RBI governor says it is quit fearful that the country will grow up one side and the inflation too. But the good side of the inflation is that the capital investment to the industrial area is higher than the early years.

Due to the inflation, the vogues of the employee are control less and that should tote up the small level employer.  The other side of the inflation is to rearrange the daily home budget and it should affect directly to the house maker. Due to the higher inflation rate the crude oil price always varies that should trapped the oil companies and they give that burden to the civilian.

Now onwards the oil price should change once in two week.

And we can expect that the government should add some financial packages to the inflation otherwise it should affect our growth.

According to the RBI repo rates  the Corporation bank hikes  the loan interest rate at 0.5%  . And also the rate hikes all over the major Indian banks because the interface of  RBI. The major banks are increases the investment interest also.

Due to the RBI repo rate the home loan, car lone, industrial loan are also hikes.

From the bank officials the chairman& MD  Mr: J M Garg retired.



RBI hikes short-term rates but CRR unchanged

The central bank raised interest rates more forcefully than expected on Tuesday in the face of inflation that has held stubbornly above 10 percent for the past five months. The Reserve Bank of India said it would continue to normalise policy in line with the growth and inflation rate in the economy.

In the recent past, it had said repeatedly that it would follow a “calibrated” exit from loose monetary policy, which markets had taken to mean 25 basis point rate hikes at each quarterly review. “The dominant concern that has shaped the monetary policy stance in this review is high inflation,” the central bank said.

“With growth taking firm hold, the balance of policy stance has to shift decisively to containing inflation and anchoring inflationary expectations,” it said. The central bank, which reviews monetary policy on a quarterly basis but has twice this year surprised investors with off-cycle rates, also said it would begin undertaking mid-quarter reviews.

The RBI lifted the repo rate, at which it lends to banks, by 25 basis points to 5.75 percent, which was in line with expectations, but raised the reverse repo rate, at which it absorbs excess cash from the system, by a steeper than expected 50 basis points to 4.50 percent.

India’s benchmark 10-year federal bond yields eased briefly immediately after the policy announcement by one basis point while shares gained a tad after the central bank raised its key policy rates. As expected, the central bank left the cash reserve ratio (CRR) unchanged at 6 percent.

Inflation in India emerged last year in the wake of a poor monsoon that drove up food prices but has spread broadly throughout the economy, spawning protests against a government whose voter base is predominantly poor and rural. New Delhi’s decision to increase fuel prices is expected to add nearly a percentage point to wholesale price index (WPI) inflation starting in July and led the opposition to call a one-day nationwide strike early this month.

The government is counting on normal summer monsoon rains to results in better crop yields and ease pressure on food prices, and has said inflation should decline to 6 percent by December, a figure private economists put closer to 8 percent.

Apollo Munich maxima policy can be taken by anyone in the age group of 91 days to 65 years. The policy can be renewed at anytime in the lifespan. All this makes Apollo Munich special and attractive. The policy is good news to those near to 65 years of age and hasn’t taken a policy yet. Apollo Munich gives coverage to both inpatient and outpatient treatments. A bonus of 10% is also there for unclaimed years.

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While the stock market is at in its heights, investment in equity mutual funds altogether is not welcomed. Thus most of the investors are depending on Systematic Investment Plan(SIP). Most of the investors are unknown about the much more profitable way of Systematic Transfer Plan.

Systematic Transfer Plan is the transferring of a fixed sum from a fund of one mutual fund Company to another fund daily, weekly, fortnightly, monthly, once in 3 months, half yearly or yearly. Transferring can be done from any fund to another fund.

Case Study: Consider an investor invested about 1 lakh Rs in a liquid fund of a mutual fund Company which are DET funds that invest in short term debentures. A sum of Rs 10,000 is transferred in each month to an equity fund of the same company. This scheme has two advantages that’s, the investment can be done in similar way as in SIP and return can be obtained for the investment in liquid fund. The return from the liquid funds is around 5-7 %. In the mean time the investments in a savings account can yield only about 3.5 % per annum.

Fund transfer from equity funds is also possible by the systematic transfer plan. Consider the case that you had made an investment in a diversified equity fund and you need to avail tax benefit through investment in equity linked savings scheme. In this case you can transfer fund using the systematic transfer plan.

The minimum amount that can be transferred using the systematic transfer plan is Rs 500. Whereas in the case of daily transaction it is Rs 50. Similar limits are also set in the case of daily investments in liquid funds too.

The charges which are applicable to the mutual funds only are applicable for the systematic investment plan too. No charges are there for the buying and selling of units in DET funds. So no charges are there for investment and money transactions in liquid fund. Even though there is no charge for buying units in equity funds, if they are sold within a year 1% is levied as exit load. That’s if fund transfer occurs via systematic investment plan within one year of investment in equity fund, exit load of 1% I applicable.