Loans Can Save Tax !
This time of the year, we all are on the look out for means and ways to save that amount of money which gets deducted as tax. But if we have planned ourselves well during the year these three months should not be a burden. There are various investments which one can make to get a tax rebate. Let us look at how loans can help us save tax. Yes, although a loan is termed as a liability one can still avail the benefits from a loan.
Let us see how…Most of us would own a home and to finance that we take a home loan. As you would be aware your home loan is eligible for tax benefits under the Income Tax Act. Tax benefits can be claimed on both the principal and interest components of the home loan as per the Income Tax Act, 1961. Under Section 24(b) , the borrower who has taken the loan either to build a house or buy one gets the benefit of these deductions. These tax benefits under Section 24 and deduction under section 80C of the Income Tax Act can be claimed only if all the payments are made by the borrower. To claim the tax benefits one has to make (Equated Monthly Installments) EMI payments regularly. The lender, that is all home finance companies and banks usually, issue a provisional certificate at the start of the year. This certificate is based on the EMI payable in the financial year, with the break-up of the interest and principal paid.
Following is how you can get your tax benefit, for example Mr Rao has taken a home loan for buying a property. The interest on the loan taken is deductible upto Rs 1, 50,000 for a financial year only if the following conditions are met by him.
-The loan should be taken on or after April 1, 1999 for buying or building a house.
-From the end of the financial year in which the funds were borrowed the property (built/bought) should be completed within 3 years.
-If he extends the loan, the interest is payable in respect of the funds taken either for building or buying the property. Even if he refinances the principle amount outstanding under an earlier loan taken for building or buying a house he gets the benefit.
- In case Mr Rao cannot fulfill the above conditions then the interest on the borrowed funds are deductible up to Rs30,000.But the following conditions have to be met:-
- The funds should be borrowed before April 1, 1999 either for buying, building, reconstructing or renewal of the property.
-Funds should be borrowed on or after April 1, 1999 for reconstructing, repairs or renewals of the house.
- If the funds are borrowed on or after April 1, 1999, but the construction is not completed within 3 years from the end of the year, in which the funds are borrowed.
Other than the above benefits, under section 80C the principal repayment of the loan/funds borrowed, he is also eligible for deduction of upto Rs 100,000 in a financial year.
Besides availing a home loan one can also take a personal loan and invest the funds in various schemes where you can save tax. Like investing in PPF’s , Tax saving bonds, Mutual funds and various investment options. If you do not have the funds to invest for tax rebate, a personal loan can help you. So, as seen above a home loan or personal loan can help you plan your tax savings. Make sure you avail of all the benefits of a home loan which are the rebate and deduction. Always plan ahead of time for availing a tax rebate and put to use the benefits you get from your loans.
Courtesy: Deal4Loans
Saturday, February 28, 2009
Tuesday, February 24, 2009
Obama wants to watch Slumdog Millionaire
Now US President, Barack Obama is mesmerized by Slumdog Millionaire.According to the White House Obama wants to watch the acclaimed Slumdog Millionaire.
The exhilarating rags-to-riches fairy tale set in Mumbai,swept the Oscars with eight awards including the best picture, best director, best adapted screenplay; with A R Rahman becoming the only Indian to bag two Oscars for the best score and original song.
Courtesy: Yahoo! News
The exhilarating rags-to-riches fairy tale set in Mumbai,swept the Oscars with eight awards including the best picture, best director, best adapted screenplay; with A R Rahman becoming the only Indian to bag two Oscars for the best score and original song.
Courtesy: Yahoo! News
When I grow up I DON'T want to become a Teacher
How often do you hear a child today say she dreams of being a teacher one day? Few Indian youngsters, especially in big cities, are opting for a teaching career, with low salaries being the biggest deterrent.
According to Bharati Baveja, head of the department of education in Delhi University, the decline in the number of students taking admission in the B.Ed courses - which offer teacher training - has been as much as 20-30 percent over the last few years.
'In the late 1980s and 1990s, teaching as a career option for youngsters was at its peak. Even till 2000, we used to get a lot of applications for admission in the B.Ed course, but not any longer,' Baveja told IANS.
'The decline has especially been steady over the last four years - by as much as 20-30 percent,' she said.
One of the main reasons for this trend, according to Krishna Kumar, director of the National Council of Education Research and Training (NCERT), is the low salary structure of teachers, especially when compared with other career options like management.
'The status that a teacher enjoyed in the yesteryears in not true now, their pay is not enough and their welfare is hardly taken care of. A yoga, art or music teacher in many schools works only on a contract basis and in Madhya Pradesh they have teachers working only on a contract basis. It's true when a Unesco report says that a teacher is in a crisis today,' Kumar told IANS.
Sharmila Das, a primary school teacher in Vasant Vihar, said: 'I love my job but there are moments of frustration when I see my friends leading a much more luxurious and expensive lifestyle than I can ever afford. We started at the same time in our careers and I put in as much hard work as they do in their management careers, if not more. But we have ended up in very different places.'
Experts feel that increasing frustration among the teachers could be one of the reasons for cases of violence in the classroom.
'Nowadays you hear about teachers hitting their students so badly that the children have to be hospitalised or even die. While I am not defending them, the situation that a teacher finds himself or herself today in is very challenging and therefore such cases cannot be seen in isolation,' Kumar said.
However, following the Sixth Pay Commission, this trend may now reverse, some predict.
'After the Sixth Pay Commission, teachers' salaries have increased substantially by as much as 40 percent. Therefore, I am sure that people's interest will return to this field and we will hopefully get more applications for the B.Ed course this year,' Baveja said.
Doing their bit to make teaching more appealing, bodies like the NCERT and Delhi University are working at revamping their teacher training course.
Baveja said: 'The B.Ed course now is of one-year duration, but we want to make it two years and include more practical exercises. We are working at revamping it and have the vice chancellor backing us'.
Baveja also added that the trend is not necessarily true when it comes to the young in smaller metros or even women.
'We get a lot of applications from students in the non-metros which shows that for them teaching is still a revered profession. In the metros, it's mostly the girls who opt for these (B.ED) courses. For instance, in the present batch of B.Ed course the ratio of boys to girls is 20:80,' Baveja said.
(Azera Rahman can be contacted at azera.p@ians.in )
Courtesy: Yahoo! News
According to Bharati Baveja, head of the department of education in Delhi University, the decline in the number of students taking admission in the B.Ed courses - which offer teacher training - has been as much as 20-30 percent over the last few years.
'In the late 1980s and 1990s, teaching as a career option for youngsters was at its peak. Even till 2000, we used to get a lot of applications for admission in the B.Ed course, but not any longer,' Baveja told IANS.
'The decline has especially been steady over the last four years - by as much as 20-30 percent,' she said.
One of the main reasons for this trend, according to Krishna Kumar, director of the National Council of Education Research and Training (NCERT), is the low salary structure of teachers, especially when compared with other career options like management.
'The status that a teacher enjoyed in the yesteryears in not true now, their pay is not enough and their welfare is hardly taken care of. A yoga, art or music teacher in many schools works only on a contract basis and in Madhya Pradesh they have teachers working only on a contract basis. It's true when a Unesco report says that a teacher is in a crisis today,' Kumar told IANS.
Sharmila Das, a primary school teacher in Vasant Vihar, said: 'I love my job but there are moments of frustration when I see my friends leading a much more luxurious and expensive lifestyle than I can ever afford. We started at the same time in our careers and I put in as much hard work as they do in their management careers, if not more. But we have ended up in very different places.'
Experts feel that increasing frustration among the teachers could be one of the reasons for cases of violence in the classroom.
'Nowadays you hear about teachers hitting their students so badly that the children have to be hospitalised or even die. While I am not defending them, the situation that a teacher finds himself or herself today in is very challenging and therefore such cases cannot be seen in isolation,' Kumar said.
However, following the Sixth Pay Commission, this trend may now reverse, some predict.
'After the Sixth Pay Commission, teachers' salaries have increased substantially by as much as 40 percent. Therefore, I am sure that people's interest will return to this field and we will hopefully get more applications for the B.Ed course this year,' Baveja said.
Doing their bit to make teaching more appealing, bodies like the NCERT and Delhi University are working at revamping their teacher training course.
Baveja said: 'The B.Ed course now is of one-year duration, but we want to make it two years and include more practical exercises. We are working at revamping it and have the vice chancellor backing us'.
Baveja also added that the trend is not necessarily true when it comes to the young in smaller metros or even women.
'We get a lot of applications from students in the non-metros which shows that for them teaching is still a revered profession. In the metros, it's mostly the girls who opt for these (B.ED) courses. For instance, in the present batch of B.Ed course the ratio of boys to girls is 20:80,' Baveja said.
(Azera Rahman can be contacted at azera.p@ians.in )
Courtesy: Yahoo! News
Friday, February 20, 2009
Captain becomes Colonel!
'Captain of Blue' to 'Colonel of Olive Green'
Former Indian cricket captain Kapil Dev, who was inducted into the Territorial Army five months ago, will undergo a three-day battle efficiency test here beginning Friday.
'The orientation or familiarisation of Kapil Dev will begin Friday. The battle efficiency test as it is being called will also include firing practice,' an army official told IANS.
Kapil Dev, who scripted history by leading the Indian team to victory in the 1983 World Cup, was commissioned into the 150 TA (Infantry) battalion of the Punjab Regiment.
The 50-year-old legendary cricketer is now an honorary Lieutenant Colonel. He received his badges of rank from the Indian Army chief on Sep 24, 2008.
Having inspired thousands of youth in the country to pick up a bat and ball, Kapil Dev now hopes to inspire them to don the Olive Green to protect the nation.
The Territorial Army is a part-time citizen's force which functions as a 'vital adjunct' to the regular army.
Courtesy: Yahoo! News
Former Indian cricket captain Kapil Dev, who was inducted into the Territorial Army five months ago, will undergo a three-day battle efficiency test here beginning Friday.
'The orientation or familiarisation of Kapil Dev will begin Friday. The battle efficiency test as it is being called will also include firing practice,' an army official told IANS.
Kapil Dev, who scripted history by leading the Indian team to victory in the 1983 World Cup, was commissioned into the 150 TA (Infantry) battalion of the Punjab Regiment.
The 50-year-old legendary cricketer is now an honorary Lieutenant Colonel. He received his badges of rank from the Indian Army chief on Sep 24, 2008.
Having inspired thousands of youth in the country to pick up a bat and ball, Kapil Dev now hopes to inspire them to don the Olive Green to protect the nation.
The Territorial Army is a part-time citizen's force which functions as a 'vital adjunct' to the regular army.
Courtesy: Yahoo! News
India - The one stop solution for all your outsourcing needs!
Last year, Eric Weitz was turning business away. His Philadelphia law firm, Weitz Garfinkle Datz, regularly found itself pitted in court against large corporate law firms with "unlimited, incredible resources," he says. The four attorneys in his 10-person, $1 million company simply couldn't take on all the complex insurance and medical cases brought to them. Weitz's solution: outsource some of the firm's medical consulting and document management work to a company in India. "I used to have to cobble together assistance from a number of different local vendors," says Weitz. "But when you're a small firm you tend to go to the back of the list."
India is well known for its ability to handle business process outsourcing, such as call center and back-office work. But it's increasingly a venue for design and consulting jobs as well, says Anil Gupta, a professor of strategy at the University of Maryland's Smith Business School. Although the large Indian outsourcing firms cater mostly to major international firms, small U.S. companies can find partners that specialize in small to midsize businesses. Labor costs typically run a quarter of what they would in the U.S.
Weitz developed a preliminary list of potential partners by scouring legal trade journals and the Internet. Most contenders were slow to respond to his inquiries, but one, Tasks Everyday, replied immediately. The Mumbai company offered to do a test run for free, so Weitz asked it to review a stack of medical records and create a chronology of events. That worked out well, and in July Weitz started outsourcing regularly to them. Now he relies on his offshore team to do everything from researching reference materials to medical consulting. The Indian firm even hired American-trained doctors to review medical files, research, and studies for Weitz, a service it hadn't provided clients before. The two parties negotiate a fixed fee for a preset number of hours. Weitz pays up front for each contract.
If you have a complex, long-term project, Gupta recommends that you travel to India to start developing a relationship. This can be prohibitively expensive, so find out if your outsourcer will come to you. In addition to working U.S. business hours and offering local contact numbers for their clients, most reputable Indian operations have offices and account executives in the U.S.
There can be hiccups, of course. The variety of regional accents in India can create language barriers, even when all parties are speaking English. Weitz, who receives daily e-mails and weekly progress reports from his Indian team, has also found that extremely detailed instructions are necessary. "I have to be very concrete in terms of the scope of the project before even placing the call to give instructions," he says. When work does need to be corrected, says Weitz, Tasks Everyday has done so immediately, without charging extra. "If you don't set standards, you can't expect always to get a firm's best work," says Gupta. "Vendors tend to rise to the occasion."
Weitz says he'll increase his revenue about 20% because he's outsourcing to India and can now take on more cases. "My cost structure is significantly lower, so my risk tolerance is higher," Weitz says. "There's my competitive advantage"—even if it happens to be located nearly 8,000 miles away.
Courtesy - Business Week
India is well known for its ability to handle business process outsourcing, such as call center and back-office work. But it's increasingly a venue for design and consulting jobs as well, says Anil Gupta, a professor of strategy at the University of Maryland's Smith Business School. Although the large Indian outsourcing firms cater mostly to major international firms, small U.S. companies can find partners that specialize in small to midsize businesses. Labor costs typically run a quarter of what they would in the U.S.
Weitz developed a preliminary list of potential partners by scouring legal trade journals and the Internet. Most contenders were slow to respond to his inquiries, but one, Tasks Everyday, replied immediately. The Mumbai company offered to do a test run for free, so Weitz asked it to review a stack of medical records and create a chronology of events. That worked out well, and in July Weitz started outsourcing regularly to them. Now he relies on his offshore team to do everything from researching reference materials to medical consulting. The Indian firm even hired American-trained doctors to review medical files, research, and studies for Weitz, a service it hadn't provided clients before. The two parties negotiate a fixed fee for a preset number of hours. Weitz pays up front for each contract.
If you have a complex, long-term project, Gupta recommends that you travel to India to start developing a relationship. This can be prohibitively expensive, so find out if your outsourcer will come to you. In addition to working U.S. business hours and offering local contact numbers for their clients, most reputable Indian operations have offices and account executives in the U.S.
There can be hiccups, of course. The variety of regional accents in India can create language barriers, even when all parties are speaking English. Weitz, who receives daily e-mails and weekly progress reports from his Indian team, has also found that extremely detailed instructions are necessary. "I have to be very concrete in terms of the scope of the project before even placing the call to give instructions," he says. When work does need to be corrected, says Weitz, Tasks Everyday has done so immediately, without charging extra. "If you don't set standards, you can't expect always to get a firm's best work," says Gupta. "Vendors tend to rise to the occasion."
Weitz says he'll increase his revenue about 20% because he's outsourcing to India and can now take on more cases. "My cost structure is significantly lower, so my risk tolerance is higher," Weitz says. "There's my competitive advantage"—even if it happens to be located nearly 8,000 miles away.
Courtesy - Business Week
Thursday, February 19, 2009
GM - At the verge of bankruptcy
A government-backed bankruptcy reorganization remains an option for saving General Motors Corp and Chrysler LLC, analysts said on Wednesday, even though the automakers have said they would rather not go down that road.
GM and Chrysler asked for billions of dollars more in federal aid on Tuesday and announced sweeping changes including capacity reductions and job cuts.
Some Wall Street analysts were disappointed that the restructuring plans submitted to the U.S. Treasury did not include key concessions from the United Auto Workers union and the automakers' bondholders.
One analyst said that taking the bankruptcy option off the table would reduce the bargaining power of the companies.
Both GM and Chrysler analyzed a possible bankruptcy filing in their restructuring plans but stressed that it was not their preferred method for reorganizing and that they hoped to avoid this scenario.
GM, which has requested $16.4 billion in additional loans from the U.S. government for a total of up to $30 billion, has said it would run out of cash as soon as March without new federal funding.
The request came shortly after smaller rival Chrysler asked for another $5 billion in aid.
GM's request that a sizable chunk of total aid come in the form of preferred equity rather than debt is a "tacit acknowledgment of the fact that GM may emerge from an out-of-court process as a still highly levered firm," JP Morgan analyst Himanshu Patel said.
David Leiker, analyst with Robert W. Baird, still sees bankruptcy as the best option for a reorganization.
"Though likely to be painful near-term, we continue to believe that the challenges to restructuring GM and Chrysler are too complicated to be met outside of a bankruptcy," Leiker said.
In its restructuring blueprint, GM estimated that if it were forced to reorganize in a traditional bankruptcy, the tab for the government could touch $100 billion in bankruptcy financing.
Chrysler estimated that the bill for its bankruptcy could hit $1,200 per taxpayer.
GM also outlined cost-reduction actions but still has to reach an agreement with its bondholders and the UAW on how to reduce the roughly $48 billion it owes both groups.
An equity-for-debt swap, which is being considered, could significantly hit stockholders.
"A substantial majority of the pro-forma equity in General Motors would be distributed to exchanging bondholders and the UAW VEBA," Credit Suisse analyst Chris Ceraso said. "The existing equity holders would largely be wiped out by the bond and VEBA exchanges."
The UAW VEBA is trust fund set up to cover employee healthcare costs.
Another issue that could crop up for auto investors is the the potential for "going concern opinions" from auditors due to the liquidity crunch, operational losses and solvency issues in the auto industry, according to Grant Thornton, a corporate advisory and restructuring services firm.
A going concern opinion is a statement that there is substantial doubt about the entity's ability to continue as a going concern, something that would be typically mentioned in U.S. Securities and Exchange Commission filings by companies.
"It's important for the public, the supply base and all of the parties involved in restructuring the auto industry not to overreact if they start seeing 'going concern' opinions," said Kimberly Rodriguez, co-leader of Grant Thornton's global automotive team, adding that the radical restructurings GM and Chrysler are undertaking would ultimately help salvage the industry.
GM shares were down 9 cents or 4.13 percent at $2.09 in afternoon trading on the New York Stock Exchange.
Courtesy: Yahoo! News
GM and Chrysler asked for billions of dollars more in federal aid on Tuesday and announced sweeping changes including capacity reductions and job cuts.
Some Wall Street analysts were disappointed that the restructuring plans submitted to the U.S. Treasury did not include key concessions from the United Auto Workers union and the automakers' bondholders.
One analyst said that taking the bankruptcy option off the table would reduce the bargaining power of the companies.
Both GM and Chrysler analyzed a possible bankruptcy filing in their restructuring plans but stressed that it was not their preferred method for reorganizing and that they hoped to avoid this scenario.
GM, which has requested $16.4 billion in additional loans from the U.S. government for a total of up to $30 billion, has said it would run out of cash as soon as March without new federal funding.
The request came shortly after smaller rival Chrysler asked for another $5 billion in aid.
GM's request that a sizable chunk of total aid come in the form of preferred equity rather than debt is a "tacit acknowledgment of the fact that GM may emerge from an out-of-court process as a still highly levered firm," JP Morgan analyst Himanshu Patel said.
David Leiker, analyst with Robert W. Baird, still sees bankruptcy as the best option for a reorganization.
"Though likely to be painful near-term, we continue to believe that the challenges to restructuring GM and Chrysler are too complicated to be met outside of a bankruptcy," Leiker said.
In its restructuring blueprint, GM estimated that if it were forced to reorganize in a traditional bankruptcy, the tab for the government could touch $100 billion in bankruptcy financing.
Chrysler estimated that the bill for its bankruptcy could hit $1,200 per taxpayer.
GM also outlined cost-reduction actions but still has to reach an agreement with its bondholders and the UAW on how to reduce the roughly $48 billion it owes both groups.
An equity-for-debt swap, which is being considered, could significantly hit stockholders.
"A substantial majority of the pro-forma equity in General Motors would be distributed to exchanging bondholders and the UAW VEBA," Credit Suisse analyst Chris Ceraso said. "The existing equity holders would largely be wiped out by the bond and VEBA exchanges."
The UAW VEBA is trust fund set up to cover employee healthcare costs.
Another issue that could crop up for auto investors is the the potential for "going concern opinions" from auditors due to the liquidity crunch, operational losses and solvency issues in the auto industry, according to Grant Thornton, a corporate advisory and restructuring services firm.
A going concern opinion is a statement that there is substantial doubt about the entity's ability to continue as a going concern, something that would be typically mentioned in U.S. Securities and Exchange Commission filings by companies.
"It's important for the public, the supply base and all of the parties involved in restructuring the auto industry not to overreact if they start seeing 'going concern' opinions," said Kimberly Rodriguez, co-leader of Grant Thornton's global automotive team, adding that the radical restructurings GM and Chrysler are undertaking would ultimately help salvage the industry.
GM shares were down 9 cents or 4.13 percent at $2.09 in afternoon trading on the New York Stock Exchange.
Courtesy: Yahoo! News
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