NEW DELHI: With the completion of computerization of 117 of the 120 provident fund offices across the country, PF account holders who have sought a transfer can now track the progress of their applications online. The step, officials in the Employees Provident Fund Organization (EPFO) say, is aimed as much at user convenience as to infuse transparency in the working of the organization. The facility was started last week and officials say that though the transfer deadline is a month, unofficially they are looking at a window of one week within which effort will be made to complete the transfer. The system of electronic transfer of PF money was put in place from January, which is when the deadline was brought down to one month from a year that it used to take earlier. For online tracking of the application status, the applicants can visit the ...

TUTICORIN : Tamilnad Mercantile Bank Ltd and Birla Sun Life Mutual Fund have signed an MoU to market mutual fund products. The MOU for a strategic alliance to distribute and market Mutual Fund products through branches of Tamilnad Mercantile Bank was signed at Mumbai on March 3, S Selvan Rajadurai , General Manager, Business Development, TMB said in a press release S Selvan Rajadurai, General Manager, Business Development of TMB said in a press release here today that the strategic alliance to distribute and market mutual fund products through TMB's branches was signed in Mumbai on March 3. A Balasubramanian , CEO of Birla Sun Life Mutual Fund claimed their mutual fund offers innovative investment solutions across asset classes well recognized for their performance. Rajadurai said TMB is ...

MUMBAI: Returns on Unit-linked pension products are set to rise to 6% next fiscal after the central bank raised benchmark policy rates in 2010-11 to combat inflation. The Insurance Regulatory and Development Authority , or Irda, the insurance watchdog had benchmarked that returns on these products should be 0.5%, or 50 basis points, over the reverse repo rate, the rate at which the Reserve Bank of India absorbs funds from banks. The re-verse repo rate is now 5.75% after a series of rate increases. The Irda had mandated a 4.5% return on unit-linked pension plans last year and had also said that rates would be reviewed annually and vary between 3-6%. Insurance companies are unhappy with the mandated returns saying that offering a guarantee will hurt their profitability. The share of unit-linked pension products in ...

Charity and doing good is the new cause that our denizens have taken a fancy to. Almost every second or third person we do a plan for, wants to keep aside a decent pile for charity . That itself is a heart-warming trend considering the number of organisations and worthy causes that need financial assistance. There are again many of them who take it one step further... they want to take up some social causes and work in the villages. Again, this is an admirable trend which requires to be applauded . For most people, it means going and teaching in a village school. That could be the problem. Imagine a technocrat in top management going and teaching in villages... there is nothing wrong there. But, it is wasted talent. For instance, in the IT industry itself, there is a dearth of top-notch talent as the industry has been growing at a break-neck pace. Now, would it not be a great idea for this technocrat to be part of this ecosystem... train, mentor an...

NEW DELHI: Companies managing the retirement savings of their employees through own provident fund trusts have been given more time to seek licences that make them eligible for tax exemption on contributions. The Budget 2011-12 has allowed firms to obtain the exemption licence from the Employees Provident Fund Organisation (EPFO) till March 31 next year. The earlier deadline line expired on December 31. Contributions made by employers to PF accounts of employees is exempt up to 12% of salary, and interest credited is fully exempt if it does not exceed the rate notified by the government. In 2006, the finance ministry had directed companies managing their own retirement funds to get an exemption licence from the EPFO after satisfying the government that they were following all rules and guidelines. A o...

MUMBAI: Private insurer Birla Sun Life Insurance Company , a subsidiary of Aditya Birla Nuvo , today announced the launch of BSLI Foresight Plan - a unit-linked plan . BSLI Foresight Plan provides customers the upside of market returns, while shielding their investments from downside risks, its Chief Actuarial Officer Fabien Jeudy said here. This medium-term unit linked savings plan is apt for a volatile market providing the perfect blend of guarantee, flexibility and liquidity options, he told reporters. "Equity markets have a huge potential towards meeting customer's long-term wealth creation needs. However, many customers tend to stay away from this attractive opportunity due to lack of knowledge on timing the market and the resultant fear of loosing their money," he said. Keeping thi...

NEW DELHI: India's diversified stock funds lagged the benchmark index in February, as exposure to mid- and small-cap shares and sectors like capital goods hurt net asset values. Diversified funds fell 4.66 percent on an average during the month, compared with a 2.75 percent fall in the benchmark, data from global fund tracker Lipper, a Thomson Reuters company, showed. "There is no predictability at all, there are no sectoral moves... sometimes it (market) is getting impacted by global cues," said T P Raman, Managing Director at Sundaram Mutual Fund. Equity diversified funds with significant exposure to mid- and small-cap firms bore the brunt as the BSE Mid-cap index declined 7.2 percent and the small-cap index dropped 7.8 percent in February. Though money managers have reduced exposure to such stocks in recent months, these companies still accounted for more...

MUMBAI: The cost of providing group health insurance is set to go up by 25% to 50% for majority of the corporates that provide this benefit as insurance companies prepare to hike rates in April when most policies come up for renewal. More than half of the companies that buy group health insurance for their employees have ended up claiming more for employee treatments than what they had paid as premium. This has resulted in what insures describe as an underwriting loss in their group health insurance business . Many multinationals buy group health policies which coincide with the calendar year and premium under these policies have gone up by 5% to 10%. However, the larger policies which are purchased by big employers like IT companies will come up for renewal in April and insurers say that prices will rise for those companies with an adverse claims ratio. ...

As life becomes complex, there are financial needs that one cannot anticipate in totality. Be it a medical emergency or some unexpected expenses at a wedding, one needs a lifeline in terms of quick access to money. Personal loans do just that. It is a loan where the borrower need not disclose the end use of the money borrowed. There is no restriction or compliance with specific conditions of usage for the borrower. It is a loan which can be used to raise money at a comparatively short notice for any purpose, making it a rather convenient option for the borrower. These are relatively small-tenure loans, typically for less than five years. Personal loans also come with a whole host of charges. The borrower has to pay the processing fee while applying for the personal loan in the range of 1-2 % of the entire loan amount. Then, there are late payment charges (1-2 %) and pre-payment penalties (2-5 %) along with any other charges applicable from...

NEW DELHI: Berkshire Hathaway, the conglomerate led by billionaire Warren Buffett , today said it plans to enter the Indian non-life insurance sector as a corporate agent of leading player Bajaj Allianz General. The move would mark the foray of Berkshire Hathaway's direct entry into the Indian market, where the billionaire investor Buffett is yet to make substantial investments. As part of its planned India entry, the US conglomerate has incorporated Berkshire India to sell and distribute general insurance products in India. Berkshire India would directly sell insurance to consumers through the portal 'berkshireinsurance.com' and by way of telemarketing, it said in a statement. Initially, the focus would be on motor insurance but the company would continuously update its business model. ...

MUMBAI: US-based Berkshire Hathaway Inc, the firm run by billionaire Warren Buffett , said on Wednesday it aims to enter the Indian insurance sector as a corporate agent of Bajaj Allianz General Insurance . Berkshire India, a majority-owned unit of Berkshire Hathaway will sell and distribute general insurance products in India through its online distribution portal, the company said in a statement. Berkshire's initial focus will be on motor insurance, but the company will continuously update its business model to meet the needs of the fast evolving Indian insurance sector, it said. "If the market proves receptive, the company will seek to expand its products to include health insurance, life and travel insurance and other personal lines, as well," the statement added. Omaha, Nebraska-bas...

After a 400% rally in gold and 480% in silver in the past 10 years, we are seeing a pause amid the magnificent rise in precious metals. The price rise started as part of the liquidity-driven rally in all asset classes, and built pace after the credit crisis in the US, supported by safe-haven demand in the aftermath of the European sovereign debt crisis. It is now taking a breather. Low interest rates, high liquidity (stimulusdriven ), macro-economic uncertainty and lack of investor confidence in other asset classes were primary drivers of the rally in gold, with a little extra in silver in recent times as golds cheaper cousin. The recovery in the US macroeconomic environment and an increasing risk appetite prompted profit-taking in bullion. But larger uncertainties continue and high unemployment rates in developed countries prompt them to keep the easy monetary policy and feed the economy with high liquidity. Both these factors allow investors to chase high...

The Budget has left the insurance players a bit disappointed. They were expecting the finance minister to earmark a separate tax exemption limit for the life insurance premium. This was in addition to Section 80C which permits tax deductions up to Rs 1 lakh. However, the finance minister didnt play the ball. Availability of separate tax ex-emption for life Insurance premium would have encouraged penetration of a long term product such as life insurance. Currently, tax savings products such as PPF, life insurance premiums, PF contributions and National Savings Certificates are covered under the Rs 1-lakh limit under Section 80C of the Income-Tax Act, says Amitabh Chaudhary, MD & CEO, HDFC Life . Another cause for concern is the move to tax the proceeds from life insurance policies under the proposed DTC regime. The budget reaffirms the FMs intent to adher...

After a 400% rally in gold and 480% in silver in the past 10 years, we are seeing a pause amid the magnificent rise in precious metals. The price rise started as part of the liquidity-driven rally in all asset classes, and built pace after the credit crisis in the US, supported by safe-haven demand in the aftermath of the European sovereign debt crisis. It is now taking a breather. Low interest rates, high liquidity (stimulusdriven ), macro-economic uncertainty and lack of investor confidence in other asset classes were primary drivers of the rally in gold, with a little extra in silver in recent times as golds cheaper cousin. The recovery in the US macroeconomic environment and an increasing risk appetite prompted profit-taking in bullion. But larger uncertainties continue and high unemployment rates in developed countries prompt them to keep the easy monetary policy and feed the economy with high liquidity. Both these factors allow investors to chase high...

After a 400% rally in gold and 480% in silver in the past 10 years, we are seeing a pause amid the magnificent rise in precious metals. The price rise started as part of the liquidity-driven rally in all asset classes, and built pace after the credit crisis in the US, supported by safe-haven demand in the aftermath of the European sovereign debt crisis. It is now taking a breather. Low interest rates, high liquidity (stimulusdriven ), macro-economic uncertainty and lack of investor confidence in other asset classes were primary drivers of the rally in gold, with a little extra in silver in recent times as golds cheaper cousin. The recovery in the US macroeconomic environment and an increasing risk appetite prompted profit-taking in bullion. But larger uncertainties continue and high unemployment rates in developed countries prompt them to keep the easy monetary policy and feed the economy with high liquidity. Both these factors allow investors to chase high...

NEW DELHI: A day after the federal budget, senior citizens practicing laughter therapy at the Nehru Park in the capital's diplomatic enclave had real reasons to laugh, at the welcome income tax sops given them. Finance Minister Pranab Mukherjee in his budget speech Monday proposed a special category of very senior citizens of those above 80 and giving them an exemption limit of Rs.5 lakh per annum. The threshold age for senior citizens, who enjoy a tax-exemption limit of Rs 2.4 lakh, was lowered from 65 to 60 years. "I am very happy with the proposal. At this stage of my life, when I have to pay for my medical expenses which is more than my total expense every month, this measure comes as a boon to me," 82-year-old Alok Kumar Srivastava told IANS. Srivastava added that "he could think of saving some money in the future". T.V. Venkitachalam, ...

The Union Budget 2011-12 can be viewed as market neutral but growth oriented, with a positive bias. With the focus being, very clearly, on growth combined with inflation containment and an overall stronger fiscal position, we are fairly positive about the policies announced by the Finance Minister in his Budget. The highlight was the Fiscal Deficit target that showed a meaningful decline. The FM has brought down the fiscal deficit from 5.5% to 5.1% of GDP for 2010-11 and for FY12, the deficit target has also been improved to 4.6%, which provided considerable cheer to the markets. GDP growth targets for the economy at a strong 9% for FY12 and 8.6% for FY11 also provided comfort to the markets and indicated that Indias growth trajectory was intact. An announcement that was keenly watched was the targeted borrowing programme of the Government for FY12, which again surprised positively with a target net borrowing of Rs. 3.4 trillion...

MUMBAI: Home loans for HDFC borrowers have turned more expensive with the mortgage finance company revising its benchmark rates for the second time in less than four weeks. On Monday, the country's largest mortgage finance company said it was increasing its retail prime lending rate (RPLR) on housing loans by 25 basis points (bps). Last month, HDFC raised its RPLR by 25 bps to 15.25% following a 25 bps hike in key interest rates in the monetary policy. With this, the total increase in HDFCs RPLR this financial year, from April 2010 to date is 175 bps as compared to 175 bps to 200 bps rise in the banking and financial system, HDFC said in a statement. For new borrowers, HDFC has maintained the rate at 9.75%, 10% and 10.25% for loans up to Rs 30 lakh, Rs 30 to Rs 75 lakh and Rs 75 lakh. Bankers are divided on the outlook fo...

Have you put your money in stocks and/or mutual funds? The Budget often impacts the bottomlines of industries and companies and can make a difference to your investments. TOI commissioned CRISIL India's leading ratings, research, risk and policy advisory company to analyse how your market wealth could have been affected. Airlines: State of the Industry Domestic air traffic grew 18.6% year-on-year between April 2010 and January 2011, driven by strong demand from both business and leisure segments. During the period, average domestic passenger load factor was higher at 79.5% compared with 73.9% between April 2009 and January 2010. International passenger traffic at Indian airports grew 10.9% year-on-year between April 2010 and December 2010, driven by strong demand from leisure tourists. The industry's net sales increased 30.2% during April-December 2010, EBITDA (earnings before interest, tax, depreci...

NEW DELHI: In a big relief from cumbersome tax filing process for the salaried class, finance minister Pranab Mukherjee on Monday proposed to exempt them from filing tax returns unless they have other sources of income. The government will be issuing a notification exempting 'classes of persons' from the requirement of furnishing income tax returns, said the Memorandum to the Finance Bill 2011. The decision, which will come into effect from June 1, 2011, will reduce the compliance burden on small taxpayers, it added. Salaried taxpayers who do not have other sources of income and whose incomes are subject to Tax Deduction at Source ( TDS )) will be excluded from filing returns. "Therefore, in cases where there is no other source of income, filing of a return is duplication ...

MUMBAI: Housing Development Finance Corp , India's top mortgage lender, said on Monday it would raise its retail prime lending rate on housing loans by 25 basis points with effect from Tuesday. "This is in line with the rates of interest in the economy, which have hardened due to rising inflation and shrinking liquidity in the domestic market," the company said in a statement.

NEW DELHI: The government today proposed to increase the service tax on life insurance policies to 1.5 per cent from 1 per cent, a move that would increase the premium cost for policyholders. "It is being provided that tax shall be charged in the portion of the premium... the composition rate is also being increased from 1 per cent to 1.5 per cent," Finance Minister Pranab Mukherjee said in his 2011-12 Budget speech. "In case of traditional endowment plans, the service tax rate has been increased from 1.03 per cent to 1.545 per cent. Although the increase is marginal, there could be some increase in premium or returns might be lowered," Max New York Life Insurance CEO & Managing Director, Rajesh Sud said. In the traditional endowment life insurance products where it is not possible to segregate the mortality premium and the premium attributable ...

NEW DELHI: To reduce compliance burden of small taxpayers, Finance Minister Pranab Mukherjee proposed to introduce a new simplified income tax return form 'Sugam'. "I propose to introduce a new simplified return form 'Sugam' to reduce the compliance burden of small taxpayers who fall within the scope of presumptive taxation," Mukherjee said in his Budget speech. He also said the Income Tax Department will launch 58 more Aaykar Seva Kendra (ASK) or the Sevottam centre scheme for serving tax payers more efficiently. ASK is a pilot project initiated by the I-T Department to set up a one-stop service centre for enquiries. "The three pilot projects of Aaykar Seva Kendras (ASKs) under CBDT have come of age. CBDT will commission eight more such centres this year. In 2011-12, another fifty ASKs w...

NEW DELHI: The Union Budget stepped up plan allocation for the health sector by 20 per cent with a focus on health insurance , which Finance Minister Pranab Mukherjee announced would be extended now to unorganised sector workers in hazardous mining and associated industries. "The Rashtriya Swashthya Bima Yojana has emerged as an effective instrument for providing a basic health cover to poor and marginal workers. It is now being extended to MGNREGA beneficiaries, beedi workers and others," Mukherjee said in his budget speech today. He said that in the current year, the government proposed to further extend this scheme to cover unorganised sector workers in hazardous mining and associated industries like slate and slate pencil, dolomite mica and asbestos. The Finance Minister rescinded the service tax levied on health check up or treatment instead imposing...

NEW DELHI: Finance Minister Pranab Mukherjee on Monday proposed to enhance the income tax exemption limit to Rs 1.8 lakh (Rs 180,000 or $4,000) for the next financial year, from Rs 1.6 lakh now. He announced this while presenting the federal budget for the next fiscal. The minimum alternate tax levied on the corporate sector has, however, been increased to 18.5 percent from 18 percent and the surcharge has been lowered to 5 percent from 7.5 percent. Mukherjee also said he was proposing a very senior category of income tax payers, above the age of 80, for whom the tax exemption will be up to Rs 5 lakh. The qualifying age limit for senior citizens was being lowered to 60 years from 65 years.

MUMBAI: Will it stay or go off the investment radar? Retail investors may have the answer to this Rs 24,500 crore question once the Union Budget is presented on Monday. With equity-linked savings schemes (ELSS) not being included in tax exemption list in the direct taxes code (DTC), which is expected to come into force from April 2012, it could well be the end of the road for this popular investment category after the next financial year (2011-12). ELSS or tax-saver mutual funds (MFs) offer the twin benefit of high returns and tax saving to average investors. They are considered an ideal entry point for investors looking at equity-related instruments. Even after the recent market correction, the top 10 tax-saver MFs have given 10.9-16.6% annual returns over a five year period, much higher than the 8-8.5% returns offered by traditional tax-saving avenues such as bank FDs, PPF and NSC. "It is a good...

Rs 33,715 crore was the commission doled out by insurance companies in 2009 and 2010. The primary role of an investment adviser is to suggest the right mix of products to his clients. However, most advisers have been accused of selling the ones that earn a higher commission or fee. Should the advisers disclose their commissions before selling products as a measure of fair play? ET Wealth raises the question with a cross-section of experts. Srikanth Meenakshi Founder, fundsindia.com Yes The relationship between a ...

* They own two houses, but plan to buy a third one next year. * Almost 19% of total monthly income gets exhausted in paying insurance premium. * Concentrated stock portfolio with 92% of investment in one stock. Should Patris take fresh liabilities on the verge of retirement? It seems to be a poor trade-off: buying a new home as an investment in exchange for a comfortable retired life. This is what the Mumbai-based Patris appear to be doing when they are just eight years away from retirement. A bigger worrythey still havent started saving for it. The situation, however, is not as grave as it seems because the Patris are a double-income couple and have accumulated a fair amount of wealth. All they need to do is prioritise their goals and avoid superfluous investments. Aswani Kumar Patri, a 52-year-old finance manager, is married to Padma, a 50-year-old insurance ad...

NEW DELHI: The question papers of an all-India examination for posts of 375 assistant administrative officers in the Life Insurance Corporation of India ( LIC )) were leaked, police said Sunday. A youth, allegedly selling them for Rs.5 lakh each, was arrested. On the basis of a tip-off, police got hold of two sets of question papers for the morning and afternoon sessions of the exam which was held Sunday. They arrested Pawan Kumar, a geography graduate from Delhi University from Naraina area of west Delhi, police said. He sold the papers to four candidates who are being interrogated and are likely to be arrested soon. "We went to three centres in Delhi and one in Chandigarh and tallied the seized copies with the original question paper which were found to be the same," a police official said. ...

NEW DELHI: Finance Minister Pranab Mukherjee is likely to give tax concessions to the salaried class and offer incentives to farmers in his Budget 2011-12 on Monday to give relief from high prices and keeping an eye on elections in five states. It is widely expected that the Budget will raise the income tax exemption limit to Rs 1.80 lakh from the current Rs 1.60 lakh per annum. The Finance Ministry is already committed to raising the exemption limit to Rs 2 lakh per annum in the Direct Taxes Code (DTC) which is to be implemented from April 2012. Mukherjee may also consider raising the limit for investment in tax-free infrastructure bonds to give a boost to the fund-starved sector. Investments up to Rs 20,000 in infrastructure bonds enjoy tax exemption now. Experts said with fiscal deficit projected to come down sharpl...

NEW DELHI: Amid series of scams rocking the country, an extra cautious EPFO has send the tender document for appointment of funds managers to the Central Vigilance Commission (CVC) for vetting. The Employees Provident Fund Organisation (EPFO), which manages over Rs 3 lakh crore of retirement fund, will for the first time seek CVC's approval before floating bids for selecting fund managers for three years period beginning April 2011, sources said. The EPFO, according to sources, is being extra cautious in view of the discrepancies discovered in tendering process of state-owned organisations. Earlier, the EPFO in 2008 had appointed fund managers through the same process without obtaining any clearance from the CVC. It had appointed ICICI Pru, HSBC, Reliance Capital and SBI in July 2008 and their tenure will end in March this year. ...

NEW DELHI: Finance Minister Pranab Mukherjee is likely to give tax concessions to the salaried class and offer incentives to farmers in his Budget 2011-12 on Monday to give relief from high prices and keeping an eye on elections in five states. It is widely expected that the Budget will raise the income tax exemption limit to Rs 1.80 lakh from the current Rs 1.60 lakh per annum. The Finance Ministry is already committed to raising the exemption limit to Rs 2 lakh per annum in the Direct Taxes Code (DTC) which is to be implemented from April 2012. Mukherjee may also consider raising the limit for investment in tax-free infrastructure bonds to give a boost to the fund-starved sector. Investments up to Rs 20,000 in infrastructure bonds enjoy tax exemption now. Experts said with fiscal deficit projected to come down sharpl...

MUMBAI: The government is expected to come up with measures to promote alternative sources of infrastructure funding in the Union Budget since an increased dependence on banks has resulted in the banking industry being overexposed to the core sector. The Economic Survey released by the finance ministry on Friday said, Financing infrastructure would be a big challenge in the coming years and to meet the challenge some innovative ideas and new models of financing would be required. The budget expectations include an increase in deduction limits under Section 80C for infrastructure bonds and raising the disbursement target for IIFCL. Also, there has been a demand from banks to float infrastructure bonds with tax saving features. There is a possibility of an extension of the benefit under section 80CCF from Rs 20,000 to Rs 1,00,000. This can help improve financ...

MUMBAI: Life Insurance Corporation of India today launched 'Samridhi Plus' under its unit linked portfolio offering insurance protection, safety and growth. Samridhi Plus safeguards policyholders' investment from market fluctuations, LIC said in a statement here. Accident benefit option is also available under this plan that will be equal to the life cover up to a maximum of Rs 50 lakh, subject to certain conditions. The policy term for the plan is fixed for 10 years, it said. The minimum age at entry level for Samridhi Plus is 8 years while the maximum age is 65 years. The minimum premium ranges from Rs 1500 (monthly - ECS) to Rs 30,000 (single premium) depending on the mode of payment while the maximum is Rs 1 lakh per annum under any mode for the 5 year premium paying term.

NEW DELHI: The Economic Survey 2010-11 today said there will be different set of norms for life and non-life insurance companies for coming out with a public float. "It is proposed that the disclosure requirements for life and non-life companies would be separately mandated given the nature of their respective business," the Economic Survey tabled in the Parliament said. The Survey said that investors would be required to be made aware of the financial performance, company profile, financial position, risk exposure, corporate governance and management of these companies. "The IRDA is participating in the meetings of the Standing Committee on Disclosures and Accounting Issues (SCODA) set up by the SEBI to finalise the disclosure requirements for insurance companies in their prospectus documents," the Survey added. "Several insuran...

It is less than a week before the Union finance minister presents the Union Budget 2011 in Parliament. The economy is looking up with expected 8.5% growth in GDP. We have seen double-digit inflation during the current fiscal year resulting in measures to tighten the money market. Houseowners/occupiers (a section of aam aadmi) enjoy tax benefits on income from their properties. A re-look at some of them is essential in the current scenario. Interest on loan for self-occupied property House-owners enjoy tax exemption for one self-occupied house property. Interest paid on loan taken for acquiring/ renovating such property is also deducted from other income upto . 150,000 p.a. This limit was set in 2002. Cost of house properties have increased manifold. Interest rates on housing loans too are climbing upwards. Interest payout has gone up in real and percentage terms. Increasing the ...