Archive for the 'Taxation' Category

The RGESS is only for direct investing

  If I did not know how the government works (no even now I do not, but some readers may think I know), I would have believed that the brokers association has done a good lobbying job. That does not seem to be the case. However the RGESS (Rajiv Gandhi Equity Saving Scheme) is likely […]

The direct tax code…

I hate reading ‘draft proposals’ – and this hatred came from the student days hangover. When we were studying for the CA exam we had to know the ‘ACT’ and the changes that were made in the 6 months before the exam. Now if we read the ‘draft provisions’ there was a chance that we […]

Income Tax bonds: For tax deduction

The Central Government have specified bonds to be issued by (i) Industrial Finance Corporation of India;( IFCI ) (ii) Life Insurance Corporation of India; (L I C) (iii) Infrastructure Development Finance Company Limited; and ( I D F C) (iv) a Non-Banking Finance Company classified as an infrastructure finance company by the Reserve Bank of […]

Decoding the Direct Tax Code

All insurance plans will become taxable – this is terrible news for life insurance policy holders. How capital gains will be calculated will be a major issue. The cap gains calculation will have to be done by the life insurance company – after all they know all the transactions. So software guys enjoy..all life insurance […]

Paying taxes Honestly?

Most people I know pay taxes and also file tax returns. However to say that they file taxes honestly is a little difficult to say. As a social psychologist if you do analyze why people do not pay taxes, the following seem to be the reasons: a. Does not seem reasonable: Why should I pay […]

Taxation: Progressive or Regressive?

Indian elite (with whom I deal) is an amazing lot. I frankly do not know about people in other countries, so let me speak for Indians alone. We like to complain about – poor service of trains, poor roads, corruption, high taxation, poor policing, poor state machinery, pathetic infrastrucutre in general, fall in the education […]

Taxation – impact on your investment

Many people underestimate the hurt that taxation causes to their investment. Let us take an example. If you invested Rs. 100,000 in a RBI bond which pays 8% p.a. before taxes, you will get Rs. 8000 as interest and assume you pay 30% tax you will be left with Rs. 5600 at the end of […]