News You Can Use

Citigroup Alerts Investors

Citigroup asks investors in India to remain alert to possible general elections, any time starting 2008. Citigroup says the UPA government may go for snap polls after announcing welfare schemes in the next budget. (News)

SBI Cards Under RTI Act

The Central Information Commission has ruled that SBI Cards is a public authority. It has also clarified that customers can seek any information about the entity under the Right to Information Act. SBI Cards is a joint venture of State Bank of India and GE. (News)

Essar Steel Fixes Delisting Price

Essar Group has said it planned to delist Essar Steel from the bourses and fixed a floor price of Rs. 38 per share for buying the stake from public shareholders. As per the offer, shareholders will have to place heir bids around the floor price, after which the company will decide on the exit price. (News)

Tax Saving Schemes

There are a number of tax savings schemes and each of them has its advantages and disadvantages. It needs proper homework to find out the best-suited scheme from a plethora of schemes available. An intelligent investor is one who considers the risk and liquidity factors too as important as the returns potential.

Fixed Deposits

Fixed deposits with scheduled banks for tenure of five years, if notified, are eligible for tax deduction. Though the interest receivable is taxable, this option is suitable for people with less risk appetite like retired persons, widows, etcetera.

National Savings Scheme

National Savings Certificates are secured instruments issued by the government. Since the tenure is rather longer, liquidity is not that easy.

Insurance Schemes

Life insurance policies help one to save tax to a certain extent. One should carefully assess the requirement regarding the insurance cover before signing in. Size of family, income, expenses etcetera are the factors to be assessed.

Public Provident Fund

Public Provident Fund or PPF is a fully secured scheme that offers eight per cent tax free returns. Though the tenure of the scheme is for fifteen years, withdrawals are allowed from the seventh year.

Equity Linked Savings Schemes

Equity Linked Savings Schemes or ELSS are provided by Mutual Funds. Since the lock-in period is limited to three years, liquidity is not a matter to worry. One can opt for dividend plan also. As the schemes are equity based, risk is part of them.