it is not that people are unaware of this small saving device which also qualifies for IT exemption.But,as things stand,they are after making quick money & hence mostly are preferring the equity linked insurance schemes.They hardly realise that greed always leads to grief.There are thousands of investors who burnt their fingers by investing in equity linked savings-the classic example is those of the investors who paid sizable amounts with the insurance schemes run by the wings of commercial banks-the notable of which was ICICI-Prudential.In fact,as a concept & ideal also in all fitness of things investments in NSC is wise & serves the National Interests also since the amounts are held by the nation' exchequer for developmental purposes.
Interest is not tax free in true sense.Interest is added to your income and then exemption is available within overall limit of Rs.1 lac.It is useless for most of the salaried persons as the limit of 1 lac is utilised by investment in PF ,PPF, LIC, repayment of home loan etc. Please do not write such misleading articles which do not give full details of investment.
Re: Highly Misguiding Article
by Vineesh Vedsen on Apr 24, 2010 11:54 AM
Let me tell you point blank, that there a lot of misguided people around. The Insurance agents call them over and over again, show them rosy figures and get their hard earned monies. It earns the insurance agent a huge commission and awards and the investor suffers.
Whereas there are such good schemes as NSC and PPF and people do not use these schemes to the full. These schemes are very benerficial which are never advertised since it does not pay much to the agents.
Interest on NSC is not tax free....Please bear in this mind....It can only be claimed as a part of Rs. 1 Lakh exemption available....But to do that you should first add that interest to your income and then claim that benefit...this is the correct position in law....beware of such plain comments....
Re: Misleading information
by Samir Shukla on Apr 23, 2010 06:37 PM
I totally agree with ritesh. Even there are many Companies who do not give benefit of Interest on NSC u/s 80C as there is nothing specifically return on the interest part of NSC. You also need to first add that interest in you income.
Re: but there is a problem
by Somali on Apr 26, 2010 12:23 PM
Loan is available from the banks. 75% of the surrender value is advanced against the NSCs. The intt may be a little high.
I dont understand why I need to put 100000 for saving tax.. Some stupid tax saving sceme which gives only 8-10% pre year with min. lockin period of 3 yrs.. 100000 will easily get u 50% return in stock market.. even if r a dumbo.. I would rather pay tax than save in 3yr lockin period..
Re: Guys
by jo on Apr 22, 2010 05:27 PM
put in stocks & lose ur hard earn money????...show me 1 small time investor who has become rich & not burn fingers in stocks...guys keep money with u, enjoy ur wealth...dont gamble in stocks..
Re: Guys
by Vineesh Vedsen on Apr 24, 2010 11:57 AM
But you will pay 100000 to an insurance agent, who would deduct huge operating charges from the same, put some amount in the market and make merry of your hard earned money.
Re: Guys
by phani kara on Apr 22, 2010 05:54 PM
First of all stocks are not gambling.. Stocks are country`s backbbone. 2nd no one has become rich. But 50 - 60% returns is what I am getting from the past 2 years.. I have gained a lot lot more than what i have lost
Re: Re: Guys
by jo on Apr 24, 2010 12:06 PM
who says stock market is the country's backbone??? ...USA would have collapsed when there stocks where in decline,if what u say is true....2ndly,how much does the normal investor know abt the company or is the money any way secured in stocks.so is it not gambling?...u might have gained because u have money to withstand the loss.wht abt people who have burned there fingers ,committed sucide by making such stock investments...dont give such advise unless the person is comfortable even if he lose some of his money...
One Thing needs to be Highlighted is That PPF intrest Qualifies for rebate U/s 10 10 (d) Irrespective of any Lt and is in addition to The Lt Of 1 lac U/S 80 C. From Tax point of view NSC shd be bought for the unexhausted amt Of rs Sec 80 C After 6 Yrs PPF withdrawls can be used for household expenditure and equal amt invested out of Taxable income will further reduce i tax.
I am a CA For free tax Advice tosharad at rediffmail
Re: Excellent Article
by Samir Shukla on Apr 23, 2010 06:41 PM
But what about the fate of interest on PPF & NSC on maturity once the new Tax code comes into existence from 01.04.2011
Re: Re: ELSS
by Z X on Apr 26, 2010 10:59 AM
In Sanskrit they say 'munde monde matirbhinna' means everyone has got different grey matter inside his head...
Re: Re: ELSS
by Z X on Apr 26, 2010 11:00 AM
In Sanskrit they say 'munde monde matirbhinna' means everyone has got different grey matter inside his head...
Re: Re: Re: ELSS
by robin singh on May 04, 2010 08:04 PM
@phani kara... who the hell says in stock markets money doubles in 2yrs. i bet u invest rs 10000 today and lets see whether it doubles even in 5years.. don misguide people here... u dumbo...
