A lot of you reply to the daily emails with suggestions for posts, and I really appreciate that because it gives me post ideas, and I can write about stuff that is most relevant to you.
Normally, I take the gist of your suggestion; create a title of the post, and note it down on a virtual sticky note. But, the issue with this is that it is easy enough to miss an email, and sometimes the titles on the sticky notes don’t make any sense to me when I look at them later on.
So, I am creating a page here that is specifically for your suggestions for posts. You can leave a comment here suggesting an idea for a post, and if I know enough about the topic I will write about it.
That way we won’t lose track of anything you say, and if multiple people suggest the same topic for a post then I know that it should be written prior to moving on to other things.
Thanks for reading – and writing!
Can we have a review of HDFC SL SMART WOMAN PLAN…
Sure, good idea – thanks for letting me know.
Dear , Please make a note that the ICICI Prudential US Equity Blue Chip , is the Third Fund of It’s kind, in December Franklin had also launched such fund
Mitesh, could you please tell me the name of the fund? I can’t seem to find it on their website.
Manshu,
I have a doubt about your site. I see some comments on which I have some opinions.There is a REPLY Tag on each comment. I tried to avail of this option and typed some opinions and clicked the submit option.My reply did not appear. Why please? Does this mean only You can reply?
Anyone can reply to the comment and if you see some of your comments above – you will see that even your replies appear like your reply to Fatema Imami. If you see that your reply didn’t appear for some reason, email me at the time and I’ll see if it got trapped in spam. If not, then probably it didn’t get submit in the first time, and you should try again.
Since you’ve had some time in posting comments earlier also I would say it is better to have your comment saved in a notepad somewhere.
Can you write a article with comparison of Bank &Postal R.D. Vs S.I.P. in Debt funds on advantages,return,interest calculation etc
Hi,
Can you write a post on what are different ways of getting guaranteed CAGR return of 8.5% at minimum for a 10 – 15 year period. I have exhausted my 80C. Also i need to invest approx 5 lacs.
I am in the higher tax bracket.
I dont know what you mean by CAGR Return. Do you mean Return after Tax? If you are in the 30% tax bracket the desired Pretax Return will be around 11% .Some of the NCD,s will give you that kind of return.But, safety of sucn investments have to be considered. Why dont think of investing in Tax Free Bonds which are safe and give you about 8% return?
Hi Manshu,
Could you write something about “Tax implications around cash gift to dependent parents” and utilizing the family to save tax. I have read about it at different forums but would be good if you can share something on it.
Thanks
Manit
Hi Manit, That’s a good suggestion, let me see if I can write something up on that.
Income implications on premature closure of senior citizen deposit account. I have closed a senior citizen deposit account afterv 1.5 year (feb 2011). 1.5 % penalty has been recovered. Is it possible to adjust same against interest received in that finacial year ( FY 11-12) for tax calculation
No you won’t be able to adjust this against anything since this is not actually a loss. The penalty results in a lower rate of interest but not in a loss so it can’t be set off against other profits.
What I mean is can the penalty for premature closure of senior citizen account be adjusted against interest received during the year. SBI dose not reduce this from interest. The interest is shown fully paid and tax is deducted accordingly. The TDS certificate also dose not cover penalty recovered. Pl advice how to account this in income tax return.
Thanking you
Shrinivas
I feel it has to be considered as a Capital Loss and shown as such in the IT return.
I’m sorry I didn’t understand what you said earlier, this is the first time I’ve heard of this situation and I will check about how to deal with this with a friend, but not very optimistic that I will find an answer.
What do you think about ICICI Prudential US Bluechip Equity Fund?
http://www.icicipruamc.com/download/ICICI-Prudential-US-Bluechip-Equity-Fund-Leaflet.pdf
Are there similar plans to invest in US from other companies as well?
You can expect the rupee to appreciate eventually – what would be its impact?
What a coincidence PP – I’m writing that post right now! Will be up later tonight.
Amazing! Thanks – look forward to it.
Here’s the link to the finished article http://www.onemint.com/2012/06/25/icici-prudential-us-equity-bluechip-fund-review/
Hello,
I currently own a proprietor firm which provides services to US based businesses & receive my income in USD cheques, which I deposit in my Indian Bank Account and is remitted in rupees. I fall in the 30% bracket since the last couple of years. However, I will be shifting abroad for my Masters in Sep 2012 for a minimum period of 2 years. However, I expect the income to flow through during my course of studies and will remain in the 30% bracket.
My questions are:
1) What kind of bank account do I need to setup to ensure that my deposits are made properly and I can use it abroad as well.
2) Does it make sense to take an education loan? I can pay the entire expenses of the education , around 20 Lakhs, using my savings. However, I am thinking that will i get tax deduction and benefit more by paying off a loan, taking into account the tax savings.
3) What kind of taxation will I fall under from next year (NRI??) after my shift and how do I plan it.
4) I would like to continue investments [deposits, funds etc] even when I am abroad studying to build my corpus. What do you suggest for this?
Thank you for your time and consideration.
Thanks,
Ashish.
Ashish – I think you will find it worth your while to hire a CA or an adviser to answer these questions as he can get into a lot more detail with you than is possible here with my limited knowledge, but I’ll try to give some answers that may help you when you discuss this with a professional.
1. You need a NRO / NRE account once you are a non resident to make deposits, but I don’t know if that can be used for business purposes so you will have to find out how to get business payments for that.
2. The tax benefits that residents get are not applicable to NRIs which will be your status in the next two years based on your comment I think. So again, while there are benefits you need to find out if it is going to be applicable in your situation.
3. Yes, but this is a bit complicated because of the definition that the IT Act has as they birfurcate as resident ordinarily resident, non resident ordinarily resident and there’s one more I think, so again, professional help is required.
4. NRIs have a lot of options, many of the same that residents have, and of course the NRE tax free deposits that yield about 9% or so are a good way to start.
All the best with your further studies!
Manshu
hello
me and my wife are doctors and are moving to toronto, canada for 2 years for a job
we do not have a bank account there yet
what we have are SBI credit cards, but i am informed that if i make transaction there in the intial period (for university fees, buying things), they charge an extra 3.5% currency converion mark up fees
so what is the next best way for making payments there in the initial period?
Are travel cards offered by banks (preloaded with dollars) better in this case?
kindly advice
Yes Deepak, get in touch with a travel agency and get some Traveler’s checks for higher denomination and then get a few hundred dollars in cash exchanged for smaller denomination spending. Even traveler’s cards will do.
That should set you up for your initial time period when you don’t have a bank account.
Don’t use the Indian credit card, there will be very high charges that you don’t need to incur. Most people who go abroad use the Traveler’s checks and cash combination and it works well.
On the lines of HUF, can we have an article on how to create a trust for minors to officially save tax?
I’ve heard about a couple of times in “Tax Guru” on CNBC but different tax consultants have different opinion on the same. Following are some of the weird things what I’ve been told by the local guys:
1. This is an old provision which is no longer valid
2. It is usually created if you have lot of property
3. This will make the IT department suspicious causing them to open up your files
interest on housing loan not recorded in the last 2 years can i claim in this year
Dear Manshu,
I would like to have your advice on whether one can invest in NFO OF ICICI mutual fund which says it will invest in US markets. Pls. advise since US markets has not been profitable for a very long time.
I guess expense ratio will be high due to greater due diligence required for US market, which fund house may not be familiar with. Also you will be exposed to exchange rate fluctuation, if rupee appreciates you will loose money.
Hi Manshu,
Could you do a small write-up in Digital Signature?
How to acquire it?
Key vendors/ distributors,
Cost for a single digital signature
Can you a buy a single Digital signature
Renewal fee
Is there a limit on how many times one can use digital signature in a year etc
Manily looking at it from e-filing of tax returns but i think if one has digital signature the usage avenues will multiply.
Thanks
Kamlesh
Hi Kamlesh,
I really don’t know enough about digital signatures to be able to write on it. I’ll see what I can do but most likely I’ll not be able to write on this topic.
Manshu
Hi Kamlesh
You can go through the following websites for the required information.
https://incometaxindiaefiling.gov.in/portal/faq_signature.do
https://incometaxindiaefiling.gov.in/portal/downloads10-11/itr/Procedure%20for%20Registration%20of%20Digital%20Signature%20and%20Upload%20of%20Income%20Tax%20Returns%20using%20Digital%20Signature.pdf
I think, after going through these websites, you can do a write up, for the queries you have asked. Post the write up here.
Hello Manshu,
Excellent blog ! Keep up the good work.
I had a query around “$ appreciation(valuation effect) and fall in external debt and $ depreciation and increase in external debt” .. why so? As I understand India has around 50-60% of its external debt in $, so why this anomaly?
Please can you care to pick this topic in some future post?
Thanks in advance
Thanks a lot Sid!
Sid, if the Rupee appreciates then other things being equal, the value of external debt goes down because we can buy more dollars or euros with the same rupees now and vice versa so there is no anomaly.
If you tell me what makes you think such an anomaly exists then maybe I can get a better understanding of what you are asking.
Manshu,
Thanks for a prompt response. If you see the external debt report by Min. of Finance(GOI) here:
http://finmin.nic.in/the_ministry/dept_eco_affairs/economic_div/External_Debt_QDEC2011.pdf
You will see in the highlights section(point iii) the following statement, which reads and i quote:
“The valuation effect due to appreciation of US dollar vis-Ã -vis most major international
currencies contributed a decline of US$ 12.2 billion in the debt stock at end-December 2011 over the end-March 2011.”
Now, if dollar appreciates vis-a-vis other currencies of the world, will our external debt increase, decrease ?? and why?
I found the above statement in quotes (“”) rather confusing because if dollar($) appreciates, our debt stock should rise and NOT decrease??? Your comments please.
hi,
can you explain the difference between CPI index and WPI index, and also which is better.
Thank you for that suggestion, that’s a very good idea and I will have a post on that in the future.
Hey Manshu,
Can you please shed light on why US is still an economic power despite its huge public debt !
Very interesting question….let me see how I can address it.
Manshu, can you please let me have some details on the Commodities Market. I’ve googled a bit but your explainations always have more clarity! Thanks much..
Please explain Special Drawing Rights (SRD)
Hi,
Is possible to have an article on Tax Benefit on Preventive healthcare offers Rs. 5,000 deduction?
Regards,
Samir Nigam.