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2015

Impact of Fed Rate Hike

  • It is the Central Bank of USA which is considered as the most powerful banking institution in the world. The Fedral Reserve Bank was founded by the U.S.Congress in 1913 to provide the nation with a safe, flexible and stable monetary and financial system.

What is Fed Rate ?

  • The Federal Funds Rate commonly known as ‘Fed Rate’ is “the interest rate” at which depository institutions (banks and credit unions) actively trade balances held at the Federal Reserve.
  • The sub-prime crisis in 2007 and 2008 forced the American Central Bank to reduce interest rate sharply. The Fed brought down the federal fund rate from 5.25 percent in August 2007 to a target rate between 0 and 0.25 percent by December 2008. Since, then there is no change in the interest rate.

Archive


2015

Capital Gain Exemptions

  • Real Estate Market has always been seen as an investment avenue for promising returns for many investors in the past couple of decades. It even delivered the best returns compared to other investments in the recent past. Perhaps the real estate market has been visiting a sluggish trend in last one or two years but things have hardly mattered for those who are still banking on the thought that such situation will be corrected by Government policies. There are others who rely on the market sentiments alike the stock markets. Buying a house or investing in land and then selling it at the higher price once the estate market gives a promised return is a common practice and is done by many. But are we completely aware of the taxation aspects as well?
  • The Income Tax Department has inserted certain exemption provisions for those who have a dream to buy their own house or a bigger house than the existing one. On a plain reading of the provisions relating to exemptions of the Income Tax Act, 1961 pertaining to capital gains one may conclude that the above statement is just perfect.

2015

Income tax – For a better India

  • We have traditionally viewed income tax as an additional charge on our income that is paid to the government account. However we can also term income tax as simply a contribution paid by citizens of India to the government which in turn is utilized for the welfare of the people.
  • India being a great democracy has undertaken a lot of initiatives for the common man to be able to earn as well as pay taxes for the cumulative progress of people.

2015

Mutual Fund Investment Options: Growth, Dividend Payout, Dividend Reinvestment

  • While filling a mutual fund form, usually you will see three options to invest:
    1. Growth
    2. Dividend Pay-out
    3. Dividend Reinvestment
  • Most of the people are confused about the different among these, which one to choose and why?

2015
  • National Payments Corporation of India (भारतीय राष्ट्रीय भुगतान निगम, NPCI) has launched Interbank Mobile Payment Service (IMPS) on 22nd Novemeber, 2010.
  • This is first of its kind service in the world, which allows fund transfer between individuals through their mobile phones. It provides any time instant money transfer service through mobile phones to any other person registered for IMPS service in any of the participating banks.

Need for IMPS:

  • As of now, interbank funds transfer is done through National Electronic Funds Transfer (NEFT). But issue with these transfers is the time lag as this is not a real time service and transactions are settled in batches.
  • Although there is already another almost instant funds transfer service available in name of Real Time Gross Settlement (RTGS), but that has minimum transfer limit of 2 lakhs (much above what a common man generally does) and can only be done during banking working hours.

2015

Moving to USA for employment – Tax considerations

  • Cross border employment is fairly common these days. Professionals are increasingly traveling to other countries for employment and this gives rise to tax implications in both countries. Is it as easy to meet your tax filing obligations as it is to move between countries? This article touches on some common considerations for professionals traveling to USA for the first time.
  • Amit was in high spirits as he had just been selected to work at a client’s office located in the US. He was thrilled to get this opportunity and was expecting that his stint would also give him the opportunity to earn higher salary as he would be paid in US Dollars. Much to his dismay, when he received his pay check he realized that he was paying taxes in both US and India. The American dream had turned sour due to taxes. But does it have to be so? Did he actually have to pay taxes in both places? Was there something he could do to avoid double taxation?

Financial Management