Go Back   Team-BHP > Around the Corner > Shifting gears


Reply
 
Thread Tools Search this Thread
Old 29th September 2009, 15:21   #46
Senior - BHPian
 
shankar.balan's Avatar
 
Join Date: Apr 2008
Location: BLR
Posts: 8,027
Thanked: 5,322 Times
Default

Land may be the most sensible investment you can make with this money.
However, dont expect high speed appreciation and/ or high speed liquidity since land is mostly a long term investment. Contrary to what anyone may say, it is always a good time to buy land - they arent making any more of it, you see.
If I were as fortunate as you, I would invest a major portion in land keeping aside some money for more "liquid" investments which provide me with a regular return.
then I would retire from active service and chill, holiday, read, eat, sleep, play and have as much of a nice quiet stress free time as possible for as long as possible.

Last edited by shankar.balan : 29th September 2009 at 15:23.
shankar.balan is offline   Reply With Quote
Old 29th September 2009, 15:41   #47
Senior - BHPian
 
Spitfire's Avatar
 
Join Date: Jul 2006
Location: Panaji - Goa/Bangalore - Karnataka
Posts: 3,240
Thanked: 607 Times
Default

Quote:
Originally Posted by Red Liner View Post
So I got my mom to invest it in a very safe apartment complex with an existing tenant in place giving a firm income for them. If the need to sell does arise - it should not be tough. The apartment is in Cox Town, near ITC.
I think he has invested the amount already
Spitfire is offline   Reply With Quote
Old 29th September 2009, 18:58   #48
Senior - BHPian
 
Red Liner's Avatar
 
Join Date: Aug 2006
Location: Bangalore
Posts: 2,143
Thanked: 977 Times
Default

Quote:
Originally Posted by shankar.balan View Post
Land may be the most sensible investment you can make with this money.
However, dont expect high speed appreciation and/ or high speed liquidity since land is mostly a long term investment. Contrary to what anyone may say, it is always a good time to buy land - they arent making any more of it, you see.
If I were as fortunate as you, I would invest a major portion in land keeping aside some money for more "liquid" investments which provide me with a regular return.
then I would retire from active service and chill, holiday, read, eat, sleep, play and have as much of a nice quiet stress free time as possible for as long as possible.
If you are saying you can retire with 50L in the account...you've gotta be kidding me. Is that even possible - whilst keeping up similar standards of living?
Red Liner is offline   Reply With Quote
Old 29th September 2009, 19:11   #49
Newbie
 
Join Date: Aug 2008
Location: Jaipur
Posts: 23
Thanked: 0 Times
Default

The rentals per sq ft of commercial property is always 1.5-2 times in proportion to residential places. Buy some floor area in an upcoming commercial place and give it to a MNC or bank on a 10 year lease. There is nothing better than this.
ajay sarin is offline   Reply With Quote
Old 26th February 2010, 16:35   #50
Team-BHP Support
 
tsk1979's Avatar
 
Join Date: Feb 2005
Location: New Delhi
Posts: 22,952
Thanked: 15,632 Times
Default

The budget has announced an additional tax saving of 20,000 for Infrastucture bonds.
I checked, and IDBI and ICICI offer these bonds.
Now my question, can somebody give some more info on these bonds.
ICICI website says for 3 years you get 9%pa interest rate.
this sounds pretty good to me for a long term investment option.
Has anybody invested in such bonds.
What are the risks involved
What are the other parties involved in the same?
tsk1979 is offline   Reply With Quote
Old 26th February 2010, 16:42   #51
Senior - BHPian
 
shishir_bn's Avatar
 
Join Date: Nov 2009
Location: Bangalore
Posts: 1,192
Thanked: 104 Times
Default

I had IDBI bonds and this gave me 8%. But all infrastructure bonds give 8%. Good that they have reopened this. But it would have been still good if the NSC/KVP period was reduced to 3/4 yrs from 6 yrs.
shishir_bn is offline   Reply With Quote
Old 26th February 2010, 16:43   #52
Senior - BHPian
 
Spitfire's Avatar
 
Join Date: Jul 2006
Location: Panaji - Goa/Bangalore - Karnataka
Posts: 3,240
Thanked: 607 Times
Default

SBI Infra.

Long term. Please go ahead.

Good move by the government.
Spitfire is offline   Reply With Quote
Old 26th February 2010, 16:51   #53
Team-BHP Support
 
tsk1979's Avatar
 
Join Date: Feb 2005
Location: New Delhi
Posts: 22,952
Thanked: 15,632 Times
Default

One question, lets say I invest more money than 20K in these bonds, is the interest after 3 years still tax free, or is there a limit?
tsk1979 is offline   Reply With Quote
Old 26th February 2010, 17:05   #54
Senior - BHPian
 
shishir_bn's Avatar
 
Join Date: Nov 2009
Location: Bangalore
Posts: 1,192
Thanked: 104 Times
Default

Quote:
Originally Posted by tsk1979 View Post
One question, lets say I invest more money than 20K in these bonds, is the interest after 3 years still tax free, or is there a limit?
For infrastructure bonds there is no limt. But for income tax purpose you can show only 20k. we have to see if the IB's are EEE or EET
shishir_bn is offline   Reply With Quote
Old 26th February 2010, 17:29   #55
Team-BHP Support
 
Zappo's Avatar
 
Join Date: Oct 2005
Location: Hyderabad
Posts: 5,648
Thanked: 1,996 Times
Default

They went out of favor quite sometime back. I used to do these regularly till some 5 years back when they all of a sudden went out of style. Companies (IDBI, ICICI etc) also stopped issuing any fresh Infra Bonds. IDBI had the FlexiBonds whereas ICICI... ummm... forgot the name now. I think all these will make a comeback once again.

This is essentially related to the governmental priorities. Since the government has pledged renewed interest in strengthening the Infrastructure of this country these (Infrastructure bonds) are now the natural corollaries. Through these bonds money is raised in bulk for priority lending to the infra sector and goverment in turn extends the tax break to the common man.

Typically there are 3 different types of Infrastructure Tax bonds. Or rather variants, I should say. Mostly each of the releaser (IDBI, ICICI) will offer all the variants. That is how it was before this. My favorite is the annual dividend method. In this method they send you a dividend cheque every year. Normally they are very prompt in sending this cheque. At the end of the maturity period they will send you the final dividend and ask you to surrender the certificates to their registrar or to their registered office by so and so date. They will in turn send you the valuation cheque. Although in the later years they used to send the encashment value directly (redemption amount, as it is called) with a letter that the value of the paper certificates will turn nil from a particular date. One did not even need to send the certificates.

All in all I believe this is a good saving scheme to mix and match with others. Typically ICRA and others rate these bonds for their stability. Although, earlier they never had a limit on the savings under the scheme except for the ceiling of 1 lakh. Now it seems it is only upto 20k per year. But the good part is that unlike earlier it is over and above the 1 lakh limit now.
Zappo is offline   Reply With Quote
Old 26th February 2010, 18:42   #56
BHPian
 
Join Date: Jun 2009
Location: Lucknow
Posts: 171
Thanked: 13 Times
Default

The new deduction of an additional amount of Rs.20,000 for investment in long-term infrastructure bonds would only be applicable from next financial year i.e. FY 2010-11 (Assesment year 2011-12).Isn't it?
rishab.k is offline   Reply With Quote
Old 26th February 2010, 21:05   #57
rkg
Senior - BHPian
 
Join Date: Apr 2005
Location: bangalore
Posts: 1,041
Thanked: 543 Times
Default

Quote:
Originally Posted by tsk1979 View Post
One question, lets say I invest more money than 20K in these bonds, is the interest after 3 years still tax free, or is there a limit?
Interest is not tax free ( never in history, only exception was there was a limit of 12K for interest income. this can be shown under that provision. Later on some time in 2004-05 this was removed by yeswant sinha , if i remember correctly)

Till 2005-06, one can save only 70K in pf , NSC etc. to avail 100 K benefit the remaining has to be in infra bonds. Hence ICICI and IDBi used to issue. those day individual will get 20% or 15% of this 100K as tax rebate.

Chidambaram removed this separation and one is free to save in any like PF, NSC even bank FD's and also that saved amount is removed from taxable income. So individuals in 30% slab will get 30% rebate in Tax and those in 20% will get 20% rebate and 10@ guys get 10% .
earlier it was uniform 15 or 20%. Hence they lost favor of investors and these companies stopped issuing them.

These bonds almost risk free. only select institutions were allowed to issue like ICICI, IDBI, REC

They usually come in options like
regular income (yearly interest )
Cumulative ( 3 and five years)

Last edited by rkg : 26th February 2010 at 21:06.
rkg is offline   Reply With Quote
Old 26th February 2010, 21:49   #58
mkh
Senior - BHPian
 
Join Date: Oct 2009
Location: Bangalore
Posts: 1,071
Thanked: 107 Times
Default

None of them are risk free- they come with risks though limited based on the credit rating. As the disclaimer- Please read the offer document before investing.
Most papers out there have a decent background, Govt needs more money to come into infra which is THE are of focus if we are to be the economy we are targetting
Good move though
mkh is offline   Reply With Quote
Old 23rd March 2010, 13:23   #59
BHPian
 
rm_arjuna's Avatar
 
Join Date: Jan 2009
Location: Hyderabad
Posts: 448
Thanked: 55 Times
Default mutual funds SIP plans

Dear folks ,

am a novice , planning to start investment in mutual funds thru SIP ,objective is to create a corpus for my kids education . looking at 15 year time frame, need some pointers on getting started . Your feedback and time is highly appreciated .

Couple of questions :
a) how to choose a fund from so many different funds for investment .
b) what should be the sip period in each fund .i.e. should i keep investing in same fund for 2-3 yrs or keep shifting between funds every 6 months / 1 year.
c) with new option available for tax rebate for investment in infrastructure bonds , any suggestion please.
rm_arjuna is offline   Reply With Quote
Old 23rd March 2010, 15:00   #60
BHPian
 
Join Date: Feb 2006
Location: bangalore
Posts: 297
Thanked: 106 Times
Default

^..visit ValueResearchOnline.com. It will answer all your queries. They have 5* rated funds which are good.
m8002? is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
All Income Tax Queries (refunds, disputes, rates etc...) LLL Shifting gears 1290 15th November 2017 11:05
Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)! SILVERWOOD The Indian Car Scene 88 30th July 2017 12:39
Luxury cars outnumber tax-paying millionaires! Income tax evasion? Nav-i-gator Shifting gears 26 7th May 2016 09:35
Govt. to remove income tax exemptions and deductions. Please comment against it..... satish_appasani Shifting gears 15 15th May 2007 21:13
Road tax or income tax? SLK The Indian Car Scene 6 5th October 2004 14:52


All times are GMT +5.5. The time now is 00:02.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks