Category Archives: Personal Finance

Personal Finance

Online income tax filing website crashes due to overload

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As the last date for the filing of income tax returns fast approaches on July 30, 2012, the IT department as well as the assesses are facing problems with online data entry. All those who earn more than ten lakh per annum have to mandatorily file their income tax returns online from this year onwards.

Due to this the department website crashed as millions of people try to log in all at once before July 31, 2012. According to the IT PRO those who do not have any outstanding dues to the department may file their returns after July 31, 2012.

But those who owe tax will have to pay interest if they fail to file before July 31, 2012. Moreover for the first time the IT Department has set up information helpdesks or tax kiosks across the city which guide the tax payers across the city of Mumbai which will guide the taxpayers how to fill forms and do basic calculations.

But those who are at the help kiosks are not authorised to accept returns and the assesses must still visit the income tax offices at Bandra Kurla Complex or Aaykar Bhavan, Churchgate to do so or assign the task for the chattered accountant.

Personal Finance

Shriram Transport Finance aims at rural India

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Used vehicle financer, Shriram Transport Financer will now make the most of the Rural India. The company has seen demand for the financing of the financial companies from the villages with a population of more than 10,000 instead of tier II and tier III cities.

The demand has increased in terms of improved rural connectivity in terms of road and internet connections. This has also prompted people in the villages to have their own vehicles to transport their produce to the cities instead of depending on transportation from the cities.

Umesh Revankar, the Managing Director of the company said, “Right now the quantum of our disbursements to rural areas will hardly be two per cent. But we intend to take it to five per cent in the next two years”. Last year the total disbursement of the company were Rs. 19,000 crores with a growth rate of seven percent.

It even expects to maintain the same growth rate this financial year despite the economic slowdown and has put down a break on the manufacturing and mini activities. Revankar added that people in the villages were increasingly going in for their own second hand vehicles especially the smaller one tonne vehicles.

Personal Finance

RBI says mobile banking failed to take off in India

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H R Khan, the deputy governor of The Reserve Bank Of India recently hinted that the mobile banking in India has failed to take off in India. Due to this the banks and mobile companies have been told to work together for the benefit of their customers.

Khan at a seminar in Bhubaneshwar said that the growth rate in value and the volume of mobile based transactions is much lower compared to the number of bank accounts and number of mobile subscribers. The mobile transactions is where the customers can under take banking transactions with the help of mobile phones involving credit or debit to their account.

Khan said that this indicates that the banks are yet to fully exploit this technology even for their existing customers. In May 2012, about 3.34 transactions are concluded for Rs. 2.86 bn through mobile against Rs. 1.28 mn transactions of Rs. 0.91 bn in the month of May 2011.

The deputy governor said, “This growth rate is low compared to the number of bank accounts and the vast mobile subscriber base of more than 900 mn”. Khan added that the Reserve Bank Of India has also provided policy framework for a collaborative relationship between the banks and the telecom operators which has not worked.

Personal Finance

Online health plan iHealth launched for youngsters by Religare Life Insurance

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AEGON Religare Life Insurance (ARLI) has on July 24, 2012 launched an online health plan iHealth. The new plan is targeted at the new age customer who prefers a direct and convenient process while buying any financial product.

Rajiv Jamkhedekar, the ARLI Managing director and chief executive officer said, “Our customer research showed us that key concerns among buyers of health insurance are – worries about getting the full claim amount, increase in premium in case of a claim and worries about coverage of all surgeries”. So as to meet the needs of the customers, the ARLI has brought the AEGON Religare iHealth Plan.

It is a comprehensive health insurance plan which covers 849 surgeries. The plan also offers fixed benefit with a smooth claim settlement process. Yateesh Srivastava, the ARLI chief Marketing officer said that the iHealth Plan is targeted for the customers who prefer a direct and convenient process while buying any financial product.

Under the gold plan, the sun assured is Rs. 3 lakh and Rs. 5 lakh for Platinum plan. The important features of the policy is that it covers all possible surgeries with an exception of cosmetic surgeries. The customer is guaranteed the assured amount while cashless facility is offered in more than 3,000 hospitals across the country.

Personal Finance

IDBI Mutual fund launches gold fund for investment

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IDBI Mutual fund, the popular asset management company on July 24, launched a gold fund targeted mainly at the retail investors. The new gold fund has also been announced for the people without demat accounts.

The scheme will be opened for subscription from July 25, 2012 and will close on August 8, 2012. The objective of the investment is to generate returns which closely correspond closely to the returns generated by the IDBI Gold Exchange Traded Fund which was launched last year.

The investors under the new scheme, will not hold gold physically and the asset management company will hold the equivalent amount of imported gold in its vault with the Bank of Nova Scotia. Debashish Mallick, the IDBI AMC Managing director said, “Gold is a great investment asset. We see investment in gold as a component of prudent diversification to hedge against uncertainties, inflation and for long-term benefits”.

Mallick on the amount of AMC expected said, “We are expecting at least Rs 100 crore during the NFO period.” The fund house also said that the investment in gold provides better inflation adjusted returns. Mallick also said that gold in the last ten years has beaten the headline inflation 8 out of 10 times. The new IDBI product will be available across most of the IDBI Bank’s branches.