Financial Planning Will Forward Your Footsteps Towards Debt Freedom

When you are struggling with debts and you want to get rid of it, it is very important that you learn to manage your finances properly. You should understand that money is an essential need for human existence. So, you should try to spend money to meet your basic necessities rather than spending it lavishly every time. This will help …

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What Is DTAA (Double Taxation Avoidance Agreements)?

Most of the countries in the world follow the same practice to levy tax on the income or capital of there residents. Following the same practice India also impose Income Tax on residents on the “total world income” i.e. income earned anywhere in the world. With the phenomenal growth in international trade and commerce people are moving from there home …

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What Is Security Transaction Tax (STT)?

Securities Transaction Tax (STT) is a tax deduction being levied on all your equity transactions. STT is applicable on every purchase or sale of securities listed on the Indian stock exchange at rates prescribed by the Central Government from time to time. This includes equity shares, derivatives, equity oriented funds and equity oriented mutual funds. The deduction is been imposed …

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NRE, NRO Or FCNR–Which NRI Account Type Is Better For You?

All Non-Resident Indians (NRIs) face a dilemma at the beginning of their NRI status – What kind of bank account should they maintain in India? Although there are several options available for NRIs considering opening a account in an Indian bank : Non-Resident Ordinary (NRO) Savings Account, NRO Fixed Deposit Account, Non-Resident External (NRE) Savings Account, NRE Fixed Deposit Account …

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Difference Between ULIP And Traditional Insurance Policy

Unit linked insurance policy (ULIP), are insurance cum investment plans that offers the policy holder to have reasonably good returns in a long term while providing insurance protection. ULIP = Insurance (Life Insurance ) + Investment (Mutual Funds) It combine the benefits of life insurance policies with mutual funds. In a ULIP, part of  the premium paid by the customer …

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Difference Between Forward Contracts & Futures Contracts

A derivative instrument is a contract whose value depends upon the price of underlying commodity, security or index. There are several kinds of derivative instruments like forward contracts, futures contracts, options, and swap agreements. All these helps in shifting the price risk associated with the holding and trading these kinds of assets. Futures and forward are financial contracts between parties …

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Credit Default Swaps (CDS)

Credit Default Swap (CDS) is a derivative contract that transfers *credit risk in return for a series of payments. CDS allow companies to trade and manage credit risks in almost the same way as market risks. The most popular credit derivative is a credit default swap (CDS). In CDS, the buyer of the insurance makes periodic payments to the seller …

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What Is The Use Of Form 15G And Form 15H Under Income Tax Act 1961?

Form 15G and Form 15H are meant to avoid TDS on Fixed Deposits. Both are self declaration forms (not to deduct tax on the deposits), submitted by depositors to the banks at the beginning of the financial year. Form 15G is meant for non-senior citizens whereas Form 15H is meant to be used by senior citizens. If this form is …

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What Is CFD?

CFD stands for Contracts For Difference, as its name suggests it is a contract between two parties “buyer” and “seller”, that the seller will pay the buyer the difference between the current value of an asset and its value at contract time if the price of security increases, and the buyer will in return pay the seller the difference in …

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Types Of Income Tax Return Forms In India For The AY 2011-2012

Filing of Income Tax returns is a legal obligation of every Individual/HUF, Firm/AoP/BoI, Companies and trusts whose total income for the previous year has exceeded the maximum amount that is not chargeable for income tax under the provisions of the Income Tax Act, 1961. The Central Board of Direct Taxes (CBDT) has introduced Sahaj and Sugam Income tax forms for …

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ELSS Verses NSC And PPF

Now Indian tax payers have multiple tax saving options available in the market but the most critical part is making the right choice. The very first question come into mind is, which scheme will help save tax while maximizing returns. Although, traditional tax saving instruments like Public Provident Fund (PPF) and National Saving Certificate (NSC) been hot favorite since long, …

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What Is Quantitative Easing?

Quantitative Easing (QE2) is a monetary policy tool used by the central banks to increase the supply of money in an economy when the bank interest rate, discount rate and/or interbank interest rate are either zero or close to zero. Usually government regulates interest rates to increase or decrease the money supply in the country. As lower interest rates encourage …

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What Is UID?

Unique Identification Number (UID), is an identification system where all the citizens of India will be allocated with a unique number which will serve his/her identity for a variety of identification purposes. The Initiative had been taken by the Government of India to provide a unique identity to the target Indian population by mandating this system across the country. The …

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What Is ISIN Code?

The International Security Identification Number (ISIN), is a 12 Digit alpha-numeric code that uniquely identifies a security across the world. It is designed by the United Nations ISO (International Organization for standardization) to create a single global code to identify a security. Securities for which ISIN numbers are issued includes shares, bonds, commercial papers and warrants. As it is a …

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