Why India can be a major financial centre

Wow!!! Nice to see such an interesting article. Need to see how this moves up.

Growth of infrastructure sectors

Steel and Petroleum products have come down, why? What does this reflect? Only an economist can answer this I guess!!

HOTSPOTS !!!

I hear that DSL is coming out with WiFiMax broadband that would kill all the DSL and Cable broadband provider. Atleast would bring them to knees and get the price dropping. Nice to happen stuff!!!!!!

Article that this posting points to gives a nice write-up.

Insurance, PPF withdrawal? Pay tax!

PPF and Life Insurances might attract tax later due to this new movement for EET as the article says.

Tax Structure for 2005-06 compared to 2004-05

Tax Structure for 2005-06 compared to 2004-05

New Budget. Old interest rates! - Year 2005-06

Good consolidated view of the new changes for Tax

Capital gains rate
When you sell an asset (house, land, shares, mutual fund units, gold, debentures, bonds) that you own, you will need to pay a tax on the profit. This is called capital gain.

There are two broad categories to capital gain:

i. Shares, equity based mutual funds, balanced funds having 50% or more of their portfolio in equity.

If you sell within 12 months from the date of purchase, it is short-term capital gain. You will be charged 10% of the profit as tax.

If you sell after 12 months from the date of purchase, it is long-term capital gain. No tax.

ii. Any asset other than the ones mentioned above.

If you sell them within 36 months from the date of purchase, it is short-term capital gain. This profit is added to your total income. Depending on which tax bracket you fall under, you will be taxed.

If you sell after 36 months from the date at which you bought it, it is long-term capital gain. Long-term capital gain is calculated taking the cost inflation index into account. And then, 20% is the tax levied on that amount. This amount will be less than your actual profit because the effect of inflation has been taken into account.

Return on small savings

Public Provident Fund
8% pa

National Savings Certificate
8% pa

Kisan Vikas Patra
Double your investment in 8 years and 7 months.

Post Office Monthly Income Scheme
8% pa and a 10% bonus on the principal amount deposited after six years.

Post Office Time Deposits
6.25% pa (1 year), 6.5% pa (2 years), 7.25% pa (3 years), 7.5% pa (5 years)

The six deductions
i. Interest paid on home loans for a self-occupied home. You can claim the deduction on interest paid up to Rs 150,000 or the actual interest amount, whichever is lower.

ii. Section 80D - Medical insurance premium you pay for yourself, your spouse, dependent parents and children.

iii. Section 80 DD - Specified expenditure on a disabled dependent.

iv. Section 80 DD - Medical treatment and expenses incurred either for yourself or a dependent.

v. Section 80 E - Deduction for interest on education loans.

vi. Section 80 U - Deduction to a person with a disability.