After discontinuing tax-saving bonds last Budget, the finance ministry might now draw the curtains on tax-free bonds, designed to encourage long-term investments in the infrastructure sector. Tax-free bonds are those bonds issued for long term, for investment horizon of 10 to 15 years, in which interest earned is exempt from tax. Tax-free bonds do not provide any benefit of tax savings but only interest earned on these bonds is tax exempt. Since there is no tax on interest earned, these bonds are touted as much more attractive than bank fixed deposits. General Features of Tax-free bonds: (i) Tenor of Bonds: The tenor of the bonds shall be for 10 or 15 years. (ii) Permanent Account Number: It shall be mandatory for the subscribers of such

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Fixed Maturity Plans loses sheen after recent Budget has taken away the tax advantage it had, thus leaving it in a neck to neck competition with fixed deposits. Read: Taxation of Fixed Maturity Plans after Budget 2014 Fixed Maturity Plans vs. Fixed Deposits Particulars Defining Basic Structure and Tenure Fixed Maturity Plan is a close-ended debt mutual fund in which investments can only be done when it offers for subscription. The tenure of FMPs ranges from minimum of 15 days to several days such as 369 days, 542 days 1100 days etc. Dividend can be paid out regularly by opting for dividend payout option but a dividend distribution tax is levied on it. In case dividend payout is not opted than dividend will be paid

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Pradhan Mantri Jan Dhan Yojana (PMJDY), which was announced on the eve of Independence by the India’s Prime Minister Narendra Modi, has been launched today. The main motto of this scheme is to bring every household into the ambit of banking. The name “Jan Dhan Yojana” which means People Wealth Scheme was chosen by the evaluation team from the 6000 entries received in an online competition on the MyGov Platform. The tag line or the slogan of Pradhan Mantri Jan Dhan Yojana is “Mera Khata – Bhagya Vidhaata”, which means “My Bank Account is Creator of My Good Fortune”. Features of Pradhan Mantri Jan Dhan Yojana 1. Pradhan Mantri Jan Dhan Yojana is a financially inclusive scheme which aims at opening a bank account for

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Revised Rate of Interest on Delayed payment of Service Tax Central Government vide notification No 12/2014-ST dated 11.7.2014 has increased the rate of interest chargeable on the late payment of service tax dues w.e.f. 1st October, 2014. Earlier the rate of interest on the delayed payment of service tax was 18% p.a. irrespective of the time i.e. there was only one interest rate. But in budget 2014 has made changes in the rates as well as in the time period of payment of dues. Earlier even if the payment of service tax was made after 1 month or 1 year, the rate was same i.e. 18% p.a. but now the time slabs has been formed.   The interest rates on delayed payment of service tax

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Heard of the Phrase Icing on the Cake!!! This idiom is perfectly suits to Insurance Policies. Insurance policies does not only provide safeguard to your life but also gives you tax benefits. The first step of every Indian who opts for tax or financial planning is to invest in Insurance Policy. Let’s see how you can save tax through Insurance Policy in India. 1. Life Insurance Policy Life Insurance Policy is a traditional plan which includes term plans, ULIPS (unit linked insurance plans), money back and whole life cover plan. All the plans except term plan are mix of investment as well as insurance, term plan gives your pure insurance. But for the purpose of taxation all these plans are treated same and the tax

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When you shift your job, you don’t need to worry about transferring your Old Provident Fund Account to new Provident Fund Account. The process of getting employer sign the transfer form and to get the fund transferred from old account to new account used to take considerable time. But this process of transferring account is going to be the past soon with the advent of Universal Account Numbers (UAN). What is Universal Account Numbers (UAN)? Retirement fund body Employees Provident Fund Organization (EPFO) is going to assign a unique account number termed as Universal Account Numbers (UAN) to its subscribers. UAN will become the identity of the subscriber throughout his working career. How Universal Account Numbers (UAN) will work? Universal Account Numbers (UAN) will work

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Mutual Funds are losing their sheen over the time in India. Most of the investors prefer to invest in Bank FD and Life Insurance Schemes. The main reason behind this is the low return and poor performance of the mutual funds. Although there are few mutual fund schemes whose return of the last one year has been remarkable but the main thing to see before investing in mutual funds is the track record. The wiser decision would be to go for mutual funds having track record of delivering consistent high return, than opt for schemes temporarily surging the performance charts. Sure, past performance does not guarantee the same returns in the future, but if this performance has been delivered consistently, you can be reasonably assured

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