Income tax has its own set of complex rules and is vast and varied. One such area of complex rules is that of capital gains and related tax rules. Capital gain is the gain one makes from sale of a financial or non financial asset. Financial asset can mean equity shares, mutual funds, bonds, exchange traded funds, gold bonds and non financial asset would be real estate. Capital loss is the loss one makes from sale of financial and non financial assets.
Archive for month: November, 2015
Most of the young, enthusiastic workforce buy their dream home and then aim to prepay the home loan. Should you prepay or use the surplus for further investment? Looking for clarity on this question read on –
Financial plans and the suggested course of action are based on the facts pertaining to you. When a financial advisor hands over a financial plan to you and suggests buying an insurance cover, the value of that insurance cover is based on factors such as your current income, expenses, goals, assets, liabilities and commitments.
Real Estate is one asset class which never fails to lure the masses. In India, people prefer to invest in Real Estate to meet their goals. With land being in limited supply, it is very enticing to invest in this asset class.
With increasing costs, building or buying a house has turned out to be an expensive affair. To overcome this limitation, many people opt for buying plots.
Investing in these plots is much lighter on the pocket as it comes to around 20-30% of the cost of building a house/apartment. Also, there are many banks/NBFCs offering loans on these plots at the same rate or at reduced rates.
There is a declining trend seen in savings which depicts a negative sign for the economy, leading to increase in current account deficit and a call for increased investment.
The savings rate dipped to the lowest in the past nine years and has accentuated the macroeconomic imbalances. Indian household is saving less as well as borrowing. For GDP to increase more economic activity coupled with investment is required. The government has already taken measures in Budget 2014.
Financial Jargons are basically the terms/words used in financial market. Here is a sneak peak into some of the financial jargons, explaining its meaning in layman’s language.
Ilustration 1 – Family Floater Option for 35 years male and 10 lacs sum insured