radhikaji, Without going into the merits of your posting, I may say that Govt. employees got pay hike, just few days back PSE employees being rewarded with pay hike and it will now be the turn of PSU bank/insurance employees who will get the hike as general elections are round the corner. But, it is anybody`s guess whether many of the smaller PSU banks will be able to bear the expenses on account of any pay hike. May be just like petro bonds to oil companies, these pay hikes, loan waiver etc. are left by those in power to be tackled by the next Government with sincere hope that they may not be returned to the saddle again!...

(d) Whether one can withdraw prematurely from the investment in tax-free bond for utilising in purchase of a property (within a year/3 years)? ...

prafulla1001, The question remains what level the property prices will stabilise. Whether 10% or 20% or 30% or 40% or 50% below the current market price. What is your view on the price at which the property prices will stabilise (u have already mentioned time-period for stabilisation as 6 months)? ...

ashalanshu, Nice clarifications. However, I would like to have further information on the above.

(a) If one opts for investing index-LTCG in Tax-Free Bonds of NHAI and/or REC upto max. of Rs.50 lac, whether on maturity of bonds, the investor has freedom to use the funds on maturity as he likes?

{b) What is the rate of interest offered in these types of bonds? Is interest paid half-yearly or annually or only at maturity?

(c) What is the tenure of such bonds? ...

Bhatt, I think it is sufficient if could have posted the message in one link. It is only time when the humpty dumpty of Indian realestate will have a great fall (from the present prices). World-wide, central banks are fighting the present slow-down, to avoid the more deadly deflation, as newsreports suggest. ...

With recession now a reality in major economies from Japan to Germany, policymakers are starting to fret about the chance of a phenomenon many see as even more deadly; deflation.

Japan`s decade-long battle with steadily falling prices and economic stagnation looms large in officials` memories and central banks and governments are determined to avoid past mistakes.

-Deflation is probably the worst case for the financial sector because it is very difficult to overcome. Therefore all central banks are going to do everything to avoid it,- European Central Bank policymaker Ewald Nowotny said on November 10. The prospect of constantly falling prices is particularly unwelcome at present given the blow it deals to efforts by banks, firms and households to cut debt and help weather the economic storm now following the financial market crisis.

Central banks, faced with a sudden collapse in growth as well as inflation, have already slashed interest rates and are expected to keep doing so, although economists warn they may run out of rope before prices hit rock-bottom.

-Monetary policy is less powerful on the way down than on the way up,- said Stefan Gerlach, professor at the Goethe University of Frankfurt`s House of Finance.

-When inflation is rising central banks can raise rates as high as they like, but in the other direction, there`s a bound of zero.-
(Source: Eco. Times)...

Union Communications Minister (as per Times Now TV) has reiterated that the decision to allocate spectrum on first-come-first serve basis etc. in January, 2008 was done with prior approval/knowledge of PMO. The message sent out is obvious. Going by the part sale of spectrum by buyers - Unitech and one more entity - to other parties, the loss to the exchequer is estimated to the tune of Rs.60,000 crore. It will be interesting to see whether PM will accept responsibility (as informed by Union Communications Minister) and, if so, are elections to Lok Sabha round the corner? Or, will the Congress party remain silent and divert the attention of the public? ...

ch3, But the govt is doing its job meticulously is what i gather from all the programs i watch on CNBC.....see the **auditor general and controller** has pulled up Tamilnadu for lack of transparency in its rural employment scheme funded by the center.... they have used only 0.27% of the money meant for this purpose....what else can one can expect from that goggle guy... then when i heard manmohan and chiddu state today that they would not use the particular fund for infrastructure (i forget the name, anyone here remember this) but would use resources from another body etc etc when i see such deligence and attention to details i am so impressed with chiddu.. hoe he continues as the FM of the country.. i wonder if vajpayee knows anything other than to wave the saffron flag....

Dear chchch, the answer is plain NO. Once invested u can`t redeemed b4 completion of minimum lock in period of 3 years. Thanks Ashal...

Dear chchch, there is the minimum Lockin period of 3 years, so once invested, u can`t redeem ur bonds prior to this lockin. If u r not sure about ur action. opt for the Capital Gains Saving account scheme option. Under this option, u can first deposit ur amount in bank & within span of next 3 years, what to do? if u intend to construct a house do it within next 3 years. If u intend to purchase ready built house, do it within next 2 years. If u r still undecided after completion of 3 years, simply pay the LTCG tax & also Tax on the interest earned by u on ur deposit in bank. the remaining amount & interest from deposit (after pmt. of Tax) `ll be ur capital after 3 years & u can use it as per ur choice. Thanks Ashal...

(d) Whether one can withdraw prematurely from the investment in tax-free bond for utilising in purchase of a property (within a year/3 years)? ...

These bonds are for 5 years with a 3 year lock-in. Please do not forget to inform them that you want to redeem after 3 years. Remind them before 3 years are completed. Once three years are completed - it gets locked till the 5th year. At present the interest they pay is annual @ 6.25% (taxable) in April every year. There is no tax deducted at source. It is upto you to include it in your income. PAN CARD XEROX has to be submitted by all holders. Otherwise form 60 has to be submitted. If the interest amount is more than the basic tax free amount - one has to file a return. To file a return one needs a PAN number. So it is better to get a PAN , if you already don`t have one. Max amt in any one scheme is 50 lakhs. ...

Anmol Jeevan - (upto 24 lakhs for single policies).Well you can take more than one policy amounting to more than 25 lakhs. If you want to take for more than that it is Amulya Jeevan ( minimum is 25 lakhs) Anmol Jeevan (PLAN 164) For a 25 year old the premium for 10 lakhs for 25 years(max term) is Rs 2861 per year. No maturity value for such policies. Amulya Jeevan (Table 177 ) For 25 lakhs annual premium for a 35 year term is Rs 8000. It is not necessary to take only from LIC. You can compare other companies also and take the cheapest. Aegonreligare is one of the cheapest. LIC does not give critical illness rider along with term cover. HDFC gives. It is always better to take 2-4 policies for different amounts, from different insurance companies with varying terms. As you create wealth you will need less insurance when you are approaching retirement. Do not take policies for children. Only working people should take insurance. ...

Very saddening disclosure by the senior congres leader regarding the loyaly of the individual who was given the position of the Presidentship of this contry,especailly when everybody in this country know that the loyalty to congress party means loyalty to the Sonia household....