Capital Gain Account Scheme - 6 Smart Features

Capital Gain Account Scheme -  6 Smart Features..!

1. Capital Gain Account Scheme (CGAS) allows you to park sale proceeds of a property without capital gains tax liability, provided another property is bought within 2 years of sale or built within 3 years of the sale.

2 .To be eligible for this exemption, account must be opened and funds must be deposited therein before the due date of filing of the seller's income tax return for the relevant financial year.

3 . The account under CGAS must be opened with an urban or metro branch of any bank pre-specified by the government.

4 . Sellers may open a Type A or / Type B account. Type A works like a savings account and is suitable for those constructing a property.Type B works like a fixed deposit.

5. You can withdraw from CGAS by submitting an application in prescribed form. The funds must be utilized for payment towards property within 60 days of withdrawal.

6. Any unutilized funds lying in the account at the end of the prescribed period will be liable to income tax as capital gains.

Courtesy : Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.


Pure Term Plans Verses Return of Premium Plans

Pure Term Plans Verses 
Return of Premium Plans 

Life Coverage Rs. 20 lakh 
30 year old Man 
15 years Term 

Life insurance: Premium payment options..!

Life insurance: Premium payment options..!

Life insurance premium is paid annually.

There is always a risk of the policy lapsing if the premium is not paid on or before the due date.

Life insurance companies offer a number of premium payment options.

One can choose the one most suited to one's working style.

1. Online

Log on to the insurance company's website and select online premium payment option. Policyholder will need to provide details such as PAN policy number.

On submission, the premium due is displayed. Payment can be made through net banking or debit credit card.

2. Auto debit

This is a hassle-free option wherein the policyholder places an auto debit instruction using one's credit card or registering an ECS NACH mandate with the insurance company.

Insurers also have tie ups to register auto debit instruction with the policyholder's bank or electronic bill processing entities. Once this instruction is registered, the premium will automatically get deducted on or before the due date.

Depending upon the mode opted, relevant form needs to be filled with cancelled cheque and submitted to insurer.

3. Branch / drop box

Insurance companies tie up with banks to offer cheque drop facilities. Third party payment can be made from the bank branch by filling up the NEFT, RTGS form.

Alternatively, the premium cheque can be submitted at the insurance company branch or can be handed over to the insurance agent.

4. By phone

Premium payment can also be done using the Interactive Voice Response (IVR) system by calling a designated phone number of the insurance company. Credit card details are required to be submitted to effect payment through this mode.

Points to note

* While making payment of premium online, it is important to save the online premium paid receipt generated soon after the payment process is completed.

* Online payment can also be made from the policyholder's bank website by entering bank details of the insurance company.

* Insurance companies also have drop boxes at prominent places where premium cheques can be dropped.

Courtesy : Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.


Tamilnadu Still Shy Away from RISKY SHARE MARKETS

Tamilnadu Still Shy Away from RISKY SHARE MARKETS

Despite 12% Growth In Demat Accounts in 2015, Tamilnadu Still Lags Behind Maharashtra & Gujarat

Tamil Nadu occupies a pride of place when it comes to its banking strength. And when it comes to bank branches, number of ATMs, fixed de posits and investments in gold, the state has always come second or third in India .

But is Tamil Nadu risk averse with regards to demat accounts that are used for investing and trading in the stock market?

Going by the data, put out by the Central Depository Services (India) Ltd (CDSL), one would have to say yes.

 Tamil Nadu occupies the fifth place when it comes to investing in the capital markets. Shares and securities in India are held electronically in a dematerialised or `demat' account in place of physical possession of stock certificates. 

The state has only a 6.37% chunk of India's investor base, compared to states like Maharashtra which has 21.60 lakh demat accounts (22.60%) and Gujarat, which has 12.96 lakh accounts (13.56%).

While the state has seen 12% growth in demat accounts ­ from 5.45 lakh in 2014 to 6.10 lakh in 2015 ­ it still has a long way to go before it can be seen as contributing to India's equity pool. 

But, what is heartening is that this growth has been consistent and the best in the last five years. Year over-year, Tamil Nadu saw a 9% growth in 2012, before dipping to 8.7% in 2013.

The year 2014 saw a 9.4% rise to 5.45 lakh demat accounts, before it hit a five-year high of 12% in 2015.

“It is positive to note that the overall number of demat accounts in India increased by 9.5% (96.12 lakh) in 2015.There have been an increasing number of new investors entering the stock market, bringing the much needed liquidity ,“ said Mr. Cyrus Khambata, CEO, CDSL Ventures Ltd.
But while the number of investors in India went up, it did not necessarily mean heightened stock market activity. A large number of investors -nearly 75% -have not transacted even once in 2015, said CDSL.

Another concern is the penetration of capital markets in India. Equity investments are limited to a very few states with the top 3 states -Maharashtra, Gujarat and Uttar Pradesh -contributing nearly 45% of demat accounts in India.

And the top 10 states, which includes Tamil Nadu, contribute 84% of total demat accounts. 
With gold, land, fixed deposits at the top of the charts, “a majority of investors are still not considering the capital markets as their preferred investment destination. Only the capital markets can give 100% or 200% return on investments, while FDs even with the longest tenures give only 7.5%-8% interest,“ said Khambata.

Dipping into the equity markets still seems a largely urban obsession. Rural investors continued to be risk averse with only 25% of total demat accounts in 2015 coming in from rural areas. 

The top 18 cities, including Chennai, contribute nearly 40% to the total demat accounts.

Another area of skewered numbers comes with gender. Male investors continued to dominate (76%) the securities market, while the number of women investors did not noticeably improve over 5 years. 

Between 2011 and 2015, the number of women investors continued to hover at around 25% of the total investment pool.

Based on CDSL's study , investors in India seem to be interested more in short term gains & day trading than long term investments. 

“The percentage of investors holding IPO allotments for only up to three days has increased considerably in the last 5 years, whereas there is marked decline in the percentage of investors holding allotments for more than a year,“ said CDSL in its report.

Src: Rachel Chitra, TOI


About 2430 Schemes in India - How to Pick the Right Mutual Fund?

About 2430 Schemes in India -  How to Pick the Right Mutual Fund?

Data from Association of Mutual Funds in India (AMFI) for June  2016, shows there are 2,428 mutual fund schemes now. 

For first-time investors, it is important they choose the right scheme, to ensure their investments are on track:

1. How should an investor select a scheme to invest in?


Investors should choose a mutual fund scheme keeping their risk taking ability, time horizon and goals in mind.

They could get an asset allocation plan for themselves which specifies what percentage they could allocate across asset classes like equities, debt and gold. 
Typically if they wish to invest for one day to less than three years they could go with debt oriented funds or/  arbitrage funds. 

For three to five years they could consider hybrid funds which are a mix of debt and equity. If  their goal is 5 to 7 years away , then they can consider higher risk products like equity oriented mutual funds.

2. There are 43 fund houses which offer mutual funds. How do I choose amongst them?


 It is important to choose a fund house carefully as when you invest you are entrusting the fund house to manage your money .

Wealth managers suggest investors consider the pedigree of the fund house before choosing one. 

Decisions taken by the fund house and its fund manager could have a significant impact on the investment performance of the scheme. Hence check the history of the fund house, its management track record, performance of its fund managers before zeroing down on a scheme.

3. Is past performance of a scheme important? How can an investor access it?

While past performance of a mutual fund scheme is not indicative of future performance or returns, distributors suggest investors should look at long-term performance of periods of 3, 5 and 10 years of schemes. 

They can choose funds that have consistently beaten their benchmark in that tenure. 

A scheme which beats its benchmark indicates good fund management and efficient processes of the fund house. Investors can visit third party websites like Value Research or /  morning star, or /  ask for comparative data on schemes from their distributors. 

Src: ET, Prashant Mahesh


Education Loan Interest Subsidy Portal opens on August 1, 2016 for 2015-16

Education Loan Interest Subsidy Portal opens on  August 1, 2016 for 2015-16

Ministry of HRD has advised Canara Bank to open the Interest Subsidy portal from 1st August 2016 to 31st October 2016 for primary claims of Interest Subsidy on Education Loan for Financial Year 2015-16. 

 As per guidelines, the Branch Managers have to identify the eligible student borrowers and submit the claim for interest subsidy for FY 2015-16 through Canara Bank portal. 

 In the past, many branch managers did not claim the subsidy for eligible students.  

In view of this, eligible students may submit a letter to the Branch Managers requesting them to claim the interest subsidy from the Government for FY 2015-16. 

If the Bank does not submit the claim within the period, the students will not get any subsidy. 

Though it is the responsibility of the Branch manager to submit the claim, in their own interest, students are advised to ensure that the branches submit the claim within the stipulated date.  

Students who have availed education loan under IBA scheme to pursue professional or technical courses are eligible for interest subsidy during the study period plus one year, if the parental income is less than Rs. 4.50 lakh per annum. 

It is sufficient if the student submits the income certificate signed by Thasildar or competent authority only once at the time of availing the loan.  They need not submit the income certificate every year.  


Five Chennai Localities To Buy A Dream Flat In..!

5 Chennai Localities To Buy A Dream Flat In..!

 By Ms. ,
Chennai, a popular property market in south India, continues to rule the hearts of many home buyers.
More and more people are showing interest in buying homes in the city after Chennai was listed among the 20 cities to be developed as smart city under the government’s Smart Cities Mission.
So, if you, too, have made up your mind on buying a property in Chennai but can not make up your mind on which locality to go for, here is help. list five localities in Chennai that will offer you a great living experience.
1.     Perambur
Livability score: 9.4 / 10
Average price: Rs. 5,911 per square feet
A well-developed locality in northern Chennai, Perambur presents a positive picture as far as the residential projects are concerned.  Residents of Perambur have access to the finest social infrastructure encompassing renowned educational institutions, healthcare centres, shopping malls, recreational centres and bank branches.
Connectivity to other parts of the city is ensured through road and rail networks. Some of the most affordable projects in the locality include Aura Deziner Synergy, Unitech North Town Ekanta, Conceptts Flat II and Unitech Chaitanya. Rajarathnam Cashlin, AP Construction Jayam Homes and Sri Kalpathru Kalpa Vriksh are some prominent luxury projects in the locality.
2.     Sholinganallur
Livability score: 9.3 / 10
Average Property Price: Rs. 5,000 per square feet
A popular suburb in southern Chennai, Sholinganallur is a hub for major information technology (IT) parks like PSBB Millenium, Siruseri IT Park and Gateway International. Major companies like Infosys, Wipro, TCS and HCL Technologies have offices here.
The Rajiv Gandhi Expressway provides this locality a great connectivity to neighbouring localities, while Sholinganallur also enjoys a well-developed social infrastructure. The proposed infrastructure developments in the locality are a sign of the bright future Sholinganallur holds as a residential hub.
Elegant Constructions Pinnacle, Silver Line Builders Chemmmenchery, Vermillion Sangamam and Baashyaam Pinnacle Crest are the major affordable properties in the locality; whereas Call Express Construction Ushera, Adroit Urban Artistica, Vermillion Sangamam Villa and ASV Constructions Alexandria are some prestigious luxury projects coming up at Sholinganallur.
3.     Pallikaranai
Livability score: 9.2 / 10
Average price: Rs. 4,700 per square feet
One of south Chennai’s bustling neighbourhoods, Pallikaranai is a premium residential locality with a robust civic and social infrastructure.
It is nestled in close proximity to an IT corridor, the central business district as well as the automobile hub at the GST Road. With the international airport only 12.3 kilometres away and the Chrompet Railway Station 9 kilometres away, Pallikaranai promises a pleasurable commuting experience to all its inhabitants.

Key projects in the affordable segment here include Rampon Infratech The Sapthagiri Garden, Puravankara Windermere, SRS Properties Apple Flats and Keerthi Promoters Onella Hive. Luxury residential properties in the locality include Puravankara Windermere and Fairyland Sai Amarantha.
4.     Madipakkam
Livability score: 9.2 / 10
Average price: Rs. 5,500 per square feet
Once a small village, Madipakkam has turned into a busy suburb in south Chennai and a major hotspot for residential property development. The locality is close to the airport and the IT corridor and houses key landmarks of the city, apart from offering its residents quality civic infrastructure.
 All this makes Madipakkam one of the most promising housing destinations in Chennai. Madipakkam is also a hub of plush hotels, shopping malls, recreational centres and schools & colleges.
GK Flats Sri Sai Vishnu, Sai Siddarth Constructions Sai Sagar, Brownstone Agate and Ramaniyam Ocean Dew are the most popular housing projects in the affordable domain while Sobha Winchester is a classic high-end residential project worth investing in.
5.     Anna Nagar
Livability score: 9.1 / 10
Average price: Rs. 13,000 per square feet
Earlier known as Naduvakkarai, Anna Nagar is a famous and sought-after residential neighbourhood in north-western part of Chennai. A superb connectivity to the upcoming Thirumangalam Metro Station and an easy access to the international airport and the central railway station gives a strategic advantage to Anna Nagar over other locations.
The social infrastructure of the region entails reputed schools, finest healthcare centres, high-end hotels, shopping malls and recreational complexes.
Ben Foundations Maple Orchard, Pace Prana, Pace Park Lane and AP Construction Amiritha constitute the major affordable projects in the locality.
Ozone Metrozone, Ozone The Gardenia, Newry Properties Park Tower and India Santhiniketan are some important luxury residential projects coming up in this contemporary residential colony.


Mirrors Club Salon Inaugurated at Banjara Hills Hyderabad

            Mirrors Club Salon  Inaugurated at Banjara Hills  Hyderabad

Mirrors Club Salon is being launched in  Banjara Hills road number 12 Hyderabad. Dr. Vijayalakshmi Goodapati & Kavya Reddy After transforming the fashion and beauty landscape in Hyderabad with three salons in up-market Jubilee Hills, the heart of Cyberabad - Madhapur, and the financial district Gachibowli, Mirrors Luxury Salons is launching Mirrors Club Salon - its 4th salon and 1st franchise salon - at Road No. 12, Banjara Hills on the 29th of July 2016.
Mirrors Club Salon is both ultra-luxurious and exceptionally peaceful — a vast, aesthetically done space offers the perfect environment for excellent consultation, styling and attention. From colour, cutting and styling to hygiene, salon management and special events, Mirrors has listened to customers over the past 16 years — and that shows at the Club Salon. 
Mirrors' typical minimal style is evident in abundance, Club Salon with its luxurious and refined atmosphere provides clients with a cozy haven in which to relax and indulge themselves in care. Every member of the team take the time to talk to clients about what they are looking for and focus on creating styles that are easy to maintain and that grow out without losing their shape.

Under the illustrious guidance of Dr. Vijayalakshmi Goodapati and entrepreneur Kavya Reddy, talented artists and technicians at Mirrors Club Salon deliver the full hair and beauty experience. Top aestheticians customize skin care routines / signature services based on specific needs of clients. 
Accomplished makeup artists customize the perfect look based on the skin tone and color preferences of clients. Whether it is a classic, glamorous, sophisticated, natural, or vintage style, make-up artists provide stunning hair and long-lasting make-up looks for the entire bridal party.
Mirrors has made Hyderabad proud b winning the 'Best Salon in South' award at the L'Oreal Professionnel Indian Hairdressing Awards 2014-15 and several other reputed national awards such as Regional Standalone Salon of the Year (Premium Segment), Spa of the Year (Aesthetic Design), Customer Service Excellence, Best Day Spa in South India and New Creative Force of the Year at the prestigious Indian salon Awards 2014-15. 
Mirrors has also won the "Business Leader" Award in the Beauty & Wellness category at the Business Leader Awards 2015. Mirrors' diverse client roster includes movie stars, celebrities, models, socialites, political figures and many others. When you are at Mirrors, chances are that you might bump into one of your favourite stars getting his / her styling done.
Mirrors Club Salon
P No. 8-2-684/3/16 & 17, Road No. 12,
Ground and First Floor, Disha Banjara,
Banjara Green Colony, Banjara Hills, Hyderabad +91 40 4025 1818


Benjamin Graham's The Intelligent Investor - The best book on investing ever written - Warren Buffett

Benjamin Graham's The Intelligent Investor -  
The best book on investing ever written - Warren Buffett

In 1949, Benjamin Graham published his most acclaimed book, The Intelligent Investor. Indeed, legendary investor Warren Buffett called it the best book on investing ever written. 

Why has this book become so famous? With a simple and lucid style The Intelligent Investor guides the layman in the basics of investment philosophy. The book aims to enable readers to earn robust and sustainable returns on investments. And that too without resorting to complex mathematical calculations. It's a must-read book for every die-hard value investor. 

Indeed, one of the hallmarks of Graham's book is his focus on the concept of margin of safety. He wrote that when a company is available on the market at a price that is at a discount to its intrinsic value, then there exists a 'margin of safety'. That is when investors should consider putting money in the stock of such a company. 

Graham was not a fan of predicting the future. Indeed, since the future is highly uncertain, he believed that it was almost impossible to predict trends and how the environment and its consequent impact on companies will pan out. That is why he preferred to rely more on the past record and zero in on companies that were trading at a deep discount to their intrinsic value. 

These principles were set on paper 67 years back. The world has changed so much since then. 

How relevant are Graham's principles today? 

We live in a world where technological disruption is the order of the day and data and information are available at the click of a button. The political and economic landscape of the global economy has also changed substantially. We are now a part of a much more integrated global economy. 

In such an environment, are Graham's principles of deep value investing outdated? Not one bit. In fact, they are all the more relevant. You see, Graham's view that the future is unpredictable is valid even today. 

Given how technology and doing business are evolving, anyone trying to predict the future is bound to make some errors. Hence, irrespective of the global macro environment, it is all the more important, particularly today, to determine the intrinsic value of a stock and only put money in companies trading at a big discount to this value. 

Equitymaster Co-Head of Research Rahul Shah certainly believes in Graham's principles. That is why he and his team launched the Microcap Millionaires service in February 2014 based on the simple rules that Graham laid out and some qualitative criteria of their own. 

And here's the icing on the cake...The service has hit the 100% returns mark for the first time since it was launched. This is way, way ahead of the Sensex's 37% during the same period. In fact, Microcap Millionaires even outperformed the 86% returns of the BSE Small-Cap index during the same period. 

Here's Rahul:
    You can not go too wrong with a strategy defined by Mr. Benjamin Graham, particularly one that has outperformed the benchmark index since it was back-tested by Mr. Graham himself in the US markets more than 50 years ago.

The best investment against inflation - Warren Buffett

Investing Mantra's, Investing Mantra's - Stock
"The best investment against inflation is to improve your own earning power, your own talent.

Very few people maximise their talent.

If you increase your talent, they can not tax it or they can not take it away from you."

Warren Buffett

Due date for filing ITR for FY 2015-16, AY 2016- 2017 Extended to 5th August,2016

Due date for filing ITR for FY 2015-16, AY 2016- 2017 Extended to 5th August, 2016

As per provisions of Section 139(1) of Income-tax Act 1961, Central Board of Direct Taxes extends the due date for filing returns of Income for financial year 2015-16, Assessment Year 2016- 2017 from 31st July, 2016 to 5th August,2016 , in case of taxpayers throughout India who are liable to file their Income-tax by 31st July, 2016.

This extension is given in order to avoid any inconvenience to the income taxpayers while making payment of taxes pertaining to returns of income for financial year 2015-16, Assessment Year 2016- 2017 by 31st July, 2016 due to reports of Bank strike on 29th July, 2016 (Friday) and 31st July, 2016 (Sunday), being a Bank-Holiday .

Due date extension in J & K is 31.08.2016

As per provisions of Section 119 of Income-tax Act, 1961(‘Act’) , Central Board of Direct Taxes extends the due date for filing income-tax returns from 31st July, 2016 to 31st August ,2016 , in case of Income-tax assessees in the State of Jammu & Kashmir who are required to file their return under Section 139(1) of the Act. 

This extension is given on consideration of reports of dislocation of general life in certain areas of the State of Jammu & Kashmir.

Readnotification for extension of ITR due date 


Investors making purchases in an overheated market - Warren Buffett

Investing Mantra's, 
Investing Mantra's - Stock

"Investors making purchases in 
an overheated market need 
to recognize that it may often 
take an extended period for 
the value of even an outstanding 
company to catch up with the price they paid."
Mr.  Warren Buffett

India: Investors in Mutual Funds Moving from Equity to Debt..!

India: Investors in Mutual Funds Moving from Equity to Debt..!

Close to a whopping Rs.7,000 Cr have been poured into debt mutual funds by investors since June 1, 2016. 
In comparison, equities have attracted investments worth a paltry Rs .400 Cr during the same period. In fact, even the couple of months prior to that, debt mutual funds have garnered significantly higher inflows than their equities counterpart. 

The reason? Well, the old habit of looking into the rear view mirror and not the windshield. 

Experts contend that since debt mutual funds have given better returns than equity mutual funds over the last one year or so, investors are optimistic that the trend will continue. 

They further argue that as stocks markets are looking expensive and as there are hope of rate cuts on the anvil, there's even more reason to tilt towards debt. 

Well, according to, it is not the returns of the past but the valuations that count. Stocks have run up alright but they are nowhere close to being very expensive. 

In fact, at the current valuations, the SENSEX is trading at a small premium to its long term average, which in view cannot be termed as very expensive. 

Besides, when you consider that corporate profit margins are at multi-year lows and could rebound over the medium term, then the case for equities becomes even stronger. 

The current markets call for at least a 50% to 60% tilt towards equities and the rest towards debt if not more. 



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