Budgeting and planning

gift tax

Posted by : ashalanshu

Dear leaveit, Gift tax has been abolished way back in 1995-96 & has neen replaced with Income tax. after that any cash gift from non blood relatives r exampted from income tax in the hands of donee subject to over all limit of 25K till FY 2004-2005, & 50K after wards. Beyond this limit, the anount 'll be added with ur income from all other sources & taxed accordingly.

In case of direct blood relatives any amount can be received as cash gift without bothering about income tax. In the reply above that's why a father can give any amount as cash gift to his married daughter.

I hope it may be clear ur understaning.

If still in doubt plz. ask to Respected Subhash Lakhotiaji.

Thanks

Ashal

PPF: A secure investment avenue :)

Posted by : Leave it.

To vvrk
Read you post. In the first and last lines of your post, I agree with two words---\\\\

How to invest

Posted by : Leave it.

I put one lac early this year in Relianc tax saver and Sundaram Tax saver at double the fae value. I got 15% from Sundaram(giving an yield of 4,75) and reliance nothing so far.
When I spoke to the agent I am told, "they are also putting in share market and the market is in low tide. It has taken away half of your vlue. Pl.wait. When the market is good, you will get good returns.' I now learn that Reliance has paid only ten per cent for the past two years and for the current year nothing is paid.
Next yeat their first set of investment completes three years .Perhaps, another 15 % may be paid.
This is to quote their own words "past performance is only an indication and the investment is subget to market risk"

v.Krishnamoorthy

gift tax

Posted by : Leave it.

Please check the reply. I remember to have read some tags attached, while abolishing the gift tax to the near relatives.
As I am out of India, I have no axis to deny your points with corrections. please check and inform the board. If your statements are correct, I will be only happy to correct my thinking.
V.krishnamoorthy

How to invest

Posted by : Leave it.

I put one lac early this year in Relianc tax saver and Sundaram Tax saver at double the fae value. I got 15% from Sundaram(giving an yield of 4,75) and reliance nothing so far.
When I spoke to the agent I am told, "they are also putting in share market and the market is in low tide. It has taken away half of your vlue. Pl.wait. When the market is good, you will get good returns.' I now learn that Reliance has paid only ten per cent for the past two years and for the current year nothing is paid.
Next yeat their first set of investment completes three years .Perhaps, another 15 % may be paid.
This is to quote their own words "past performance is only an indication and the investment is subget to market risk"

v.Krishnamoorthy

How to invest

Posted by : RANJAN

For tax saving under 80c a major portion can go towards ELSS. Tax savings scheme have given far better returns than PPF. With inflation over 11.5% - ELSS is a better option. There is only a 3 year lock in.
Invest 40k via SIP in value research rated funds and 30K in PPF.

gift tax

Posted by : ashalanshu

Dear dpt, plz. note gift tax has been abolished long back. In case u r gifting to ur married daughter, u can gift any amount as per ur choice with out any tax liability, as ur daughter is ur direct blood relative who under income tax act has been exampted from tax liability on gift amount. In this case u may give 10 rs. to - - - - -- - sky is the limit. Subject to ur over all financial worth.

Thanks

Ashal

Withdraw your NSS 1987 for better opportunities today

Posted by : Guest

But what about the TDS implications?

PPF: A secure investment avenue :)

Posted by : vvrk

Food for thought: Is PPF really a secure investment?
From one angle it does look safe and secure. Capital protection and guaranteed returns backed by the Govt. Adding the tax benefits, it is extremely attractive.

But let us look at it from a second angle taking inflation into account. Today Inflation is at around 12%. But PPF continues to give 8% return. As of today, taking inflation into consideration, you are losing 4% on your investments in PPF. The extent of loss will only increase as inflation increases. Considering the inflation factor, is PPF really a safe investment?

Thanks,
Raj

PPF: A secure investment avenue :)

Posted by : latikav

One of the traditional timetested and popular saving instruments has been the Public Provident Fund (PPF). PPF is a savings and tax-saving instrument. It also serves as a retirement planning tool for those who are not covered by any structured pension plan. The popularity of PPF as an investment avenue has been because of various reasons seldom found in other savings instruments - high rate of returns, compound interest, complete safety, no wealth tax, and tax-free interest.

A PPF account can be opened at a head post office or at specified branches of some nationalised banks. Subscription can be made in cash or through a crossed cheque in favour of the accounts office, at the place at which that office is situated.

Any individual may, on his own behalf or on behalf of a minor of whom he is the guardian, subscribe to PPF. The amount should not be less than Rs 100 and not more than Rs 70,000 in a year. An individual may also subscribe to the fund on behalf of a Hindu Undivided Family, an association of persons or a body of individuals.

Over the past few years, the interest rate on PPF accounts has also been reduced and has come down from 12 to eight per cent. Still, considering the other instruments available in the market, PPF is among the best options. Considering the tax advantages on the interest income, the effective rate of returns is quite high as compared to other saving instruments.

The interest rate on PPF has been following market rates. Starting from 4.8 per cent in 1968-69 , it went upto 12 per cent in 1986-87 . The 12 per cent interest remained for almost 14 years till 1999-00 . From the year 2000, then decent began, and the rate has touched the prevailing eight per cent.

An individual can open only one account. A person having a GPF, EPF, or CPF accounts can also open a PPF account. More than one account/joint accounts are not permitted . Both, the parents and the child, can contribute out of their respective incomes chargeable to tax and earn tax breaks under Section 80C. An individual may open one PPF account on behalf of each minor child of whom he is the guardian. If a guardian opens an account on behalf of a minor child, the other guardian cannot open an account on behalf of the same minor child.

The account allows a nomination facility. The contribution to the account can vary from year to year, from a minimum of Rs 100 to a maximum of Rs 70,000 in any given year. Investments in a PPF account can be made in multiples of Rs 5, either lump sum, or in instalments (not exceeding 12 in a year). The credit to the PPF account is made on the date of presentation of the cheque and not on the date of its clearance. If the subscriber fails to deposit the minimum Rs 100 in a given financial year, the account is considered as discontinued but the interest will continue to accrue and paid at the end of the term. The default can be got condoned on payment of a fee of Rs 10 for each year of default, along with the arrears of subscription of Rs 100 for each such year.

Interest at the rate notified by the Central Government will be allowed for a calendar month on the lowest balance at credit of an account between the close of the fifth day and the end of the month. It will be credited to the account at the end of each year. The present rate is eight per cent compounded annually.

The balance to the credit of a subscriber in his account is not subject to attachment. The PPF Act gives the account holder immunity from attachment. Contributions paid out of the assessee's taxable income into his PPF account, his children (minor or major) and spouse's accounts qualify for rebate under the Income Tax Act. In the case of a Hindu Undivided Family, any member of the family will qualify for rebate. The interest credited to the fund and withdrawals from the fund are exempt from income tax. The balance held in a PPF account is completely free from wealth tax.

Economic Times

gift tax

Posted by : dpt

please let me know gift tax rate, is it payable by donor or donee and also if a gift of substantial amount is given to a married daughter by her father will it attract gift tax?

PPF: A secure investment avenue :)

Posted by : ravi_zala

What\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'s the period for withdrawal of PPF money. is it 5 Year ?

PPF: A secure investment avenue :)

Posted by : RANJAN

The minimum amount now is Rs 500 and not Rs 100.
The penalty is Rs 50 and not Rs 10.

Withdraw your NSS 1987 for better opportunities today

Posted by : MMB Messenger

Quit NSS for better opportunities. Make a smart move and make your money work smarter for you.