New forms for IT returns that are to be used for filinf returns are avaialble @ Income Tax Department website.
Guidelines for filing income tax return.
The following articles on rediff should be of great use to readers to know more on the new forms and guidelines.
http://in.rediff.com/money/2007/jun/08tax.htm
http://in.rediff.com/getahead/2007/may/24tax.htm
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Book Talk – The World is Flat
PO Schemes
PO Scheme
Interest
Tax Benefit
Min amount Rs
Max amount Rs
Tenure
National Saving Scheme (NSC)
8% Compounded Half yearly
80 C available
interest taxable
100
No Limit
6 years
Public Provident Fund (PPF)
8% Compounded Yearly
80 C available
interest exempt
500
70000
15 years ..extendable
Post Office Monthly Income Scheme (POMIS)
8%
Not applicable
1000
Single: 3 Lakh
Joint : 6 Lakh
6 Years, Interest paid monthly
Recurring Deposit (RD)
7.5% Compounded quarterly
Not applicable
10
No limit
5 - years
Senior Citizen Saving scheme
9 %
Not applicable
1000
15 Lakh
5 -Year , Min Age -55 years
Kisan Vikas Patra (KVP)
8.41% Compounded Yearly
Not applicable
100
No Limit
8 Years 7 Months
Term/ Time Deposits (TD)
6.25-7.50
Not applicable
200
No Limit
1,2,3,5 Years
Book Talk – The World is Flat
interest taxable
interest exempt
Joint : 6 Lakh
Book Talk – The World is Flat
Sensex and predictability
I am just recollecting the days when sensex was around 6000 ( Around early 2005), most of the business news channels were talking about sensex hovering around 'a peak'. one of the most watched business channels even aired the thoughts that investors need to be cautious as the sensex was at near all time highs.
When the sensex was around 8000 sometime later, our FM had issued some statements asking the retail investors to be careful. I don't remember any confidence aired by any of the experts at that point of time that sensex can touch 14,000. I remember to have read an article in rediff which said sensex was likely to touch 14-15000 levels . But , it had stated almost a longer time frame for that to happen when compared to the real speed in which sensex touched 14000.
It is very clear that any amount of expertise cannot predict the direction of sensex (exactly). This is not because that sensex (figure) is irrational always. But this is because there are a lot of factors that determine the course of index . Any movement in the globe may affect any of the indices as we are in flatter world compared to the yesteryears. All the more , investor's (and trader's) response to situations are also difficult to predict which to an extent determines the movement of the indices.
So, what can be the conclusion now. whenever you hear a prediction for the stock indices neither listen to it fully or ignore it completely. Be clear that patience (time) is the key virtue that an investor should possess .Always give a longer time frame for your investments to grow in the equity market unless you are a day trader!.
Blood bath in chinese market
Chinese stock index has fallen 15% from the levels of last week. There is great panic and it may fall further due to that.
Sensex has also started reacting to the fall in China and has gone into red after a smooth upward drive last week. RBI's concern over containing Inflation , Raising value of rupee, Monsoon this year are other important factors that are going to have a say in index. Meanwhile , there are some big IPOs in line like DLF and it's already raining NFOs in the mutual fund market.
The best thing for a retail investor at this point of time would be to take cautious steps. For MF investors , SIP route would be the safest. Any lump sum investment in any of the NFOs can potentially keep you away from panic. Caution in stock picking also will help especially when Indian markets are near an all time high.It doesn't mean that we will have a bear run from hereon...this is just to be on the cautious side.
Studying return trends
Investments like Gold, Real Estate, Equity have been giving phenomenol returns over the last few years. It's very difficult to make investment choices based on the results that have come out in the recent past. Looking at the historic data will help us aviod having a myopic view with respect to the earning capabilities of various investment modes.
Avg. Compounded Annual Return % of various investments since 1990 is given below
Gold -> 6%
Silver -> 6%
Sensex -> 19%
Debt -> 9%
We have to keep such realistic return % in mind when we chart out our financial plan for the future.
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