Category Archives: Personal Finance

Personal Finance

Roaming charges to be abolished from 2013

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Telecom minister Kapil Sibal on September 24, 2012 announced that the mobile phone users will not have to pay roaming charges when travelling within India from the year 2013. But the telecom companies say that the abolition of the charges could lead to the increase in the rates of the call rates.

Sibal also said that the ministry did not want to control or govern the internet and added that the Centre would enter in to dialogue with all the stake holders to deal with malicious use of cyber space. The minister was asked about the timeline of when the one nation free roaming would be implemented to which he said, “Our (telecom) secretary has told you that it will be free from next year”.

The cabinet has already approved the new telecom policy whose guidelines include doing away with roaming charges. Even Telecom secretary R Chandrasekhar last week announced that the consumer centric move would be implemented next year.

Chandrasekhar said, “Our first priority is the upcoming spectrum auctions. At the same time, we are working on the Unified Licence (UL) and we want to finalise this by December.” The roaming charges account for about 10% of the sector’s venues and the telcos might compensate the loss by increasing the call rates.

Personal Finance

ICICI Bank increases ATM cash withdrawal fees for International transactions

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The customers of the ICICI bank will have to pay more while withdrawing cash from international locations. All the ATM cash withdrawals at the international locations will be costlier by 17 percent by the middle of this month.

ICICI Bank in a notification told its customers, “With effect from September 15, 2012 ATM cash withdrawal fee at international location will be increased from Rs 107 to Rs 125”. The bank also said that the service tax and the other terms and conditions would continue to be applicable to this fee.

When asked an official from the bank, it was revealed that the latest revision in the rates are being affected to offset a hike in overseas partner banks/financial institutions fees for this type of service. Meanwhile the other leading private banks like HDFC, Axis Bank and Kotak Mahindra charge their customers a fee ranging from Rs. 110 to Rs. 125 per transaction for ATM cash withdrawals at the international location.

While the others like ING King Vysya charges its debit card holders the rupee equivalent of $2.5 per withdrawal. But the charges of this sector are higher for some of the public sector banks as compared to the private sector banks. The Bank Of Baroda customers have to pay Rs. 200 per withdrawal.

Personal Finance

Mutual funds to be purchased from mobile phones

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After the introduction of mobile banking, now there are also other tasks which can be done through the mobile phone like trading stocks, commodities, currencies and so on. Now the mobile phone users can also invest in the mutual funds schemes using mobile phones through an SMS using a dedicated application by calling up on a designated phone number.

Till now eight fund houses are offering facilities to either transact or see mutual funds portfolios. The industry observers expect more fund houses to start offering such facilities.

If you are a new investor then you have to fill up a common application form along with know your customer documents and a registration form. And after the folio is created  and the personal identification is received then the user can download the mobile application and buy and sell funds units.

The existing investors will have to fill the registration form for this facility. And if the user is transacting through SMS then he has to sign a form which registers a mobile number for all your transaction. In order to transact by a phone call the user might require a PIN which is issued by the fund house after receiving an application in the designated form.

Personal Finance

Birla Sun Life Mutual Fund hopes to get good response from savings scheme

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Finance company Birla Sun Life Mutual Fund has hopes that it would receive good response to its recurring savings plan from the retail investors. The company hopes to get a good response on the back of the volatility in the equity market and investor’s preference for debt products.

Chief Executive Balasubramanian while talking to the reports said, “The rationale behind the RSP is that it will help investors to save regularly some amount to meet their medium to long-term goals, and fixed income products have less volatility but give sound returns”. Balasubramanian also said that the fund house is hopeful of garnering substantially higher amount of funds from this plan in comparison to the other maturity plans.

The Birla Sun Life Mutual Fund draws about 80 percent of its average assets under the management from debt and the rest from the equity funds. The finance company also said that the this fund would help the firm to activate distributors to venture in to the rural areas.

The chief executive added, “Given the conservative nature of our investors, a fixed income plan will generate more interest from retail and will also activate many distributors to reach out to customers in remote regions”. Subramanian also said that it would continue with the existing schemes in debt as well as equity space.

Personal Finance

5 steps for income tax e-filing for income above 10 lakh

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E-filing of income tax was introduced a few years back. But only a few tax payers were using it successfully. But this year filing of income tax has become mandatory for the individuals who earn more than Rs. 10 lakh income. Here are a few steps on e-filing of returns.

1. How to e-file – One has various options while e-filing. it can be done by downloading the required ITR from the website and the instruction manual helps in the process. The salaried individuals, who do not have any other source of income will find it easier.

2. Essential forms – If the tax payer has income from salary, pension or rental income from property then ITR 1 is the required form. The ITR 2 for the rental income from more than one property and ITR 3 for partnership firms. ITR 4 for tax payers having income from business.

3. Essential documents – While filing returns the tax payer has to produce the bank account details. This is a very important step especially when you have refunds to claim.

4. ITVR – While filing returns the ITR by posting XML generated file on website, it generates ITVR which has to be sent to CPC Bangalore within 120 days of filing returns.

5. Deadline – The last date of filing is March 31 next year, but people who file by July 31 enjoy some privileges.