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Saving Tax On Savings Bank Interest – Sec 80TTA

September 14, 2013 Leave a comment

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By the Finance Act, 2012, a new section called 80TTA was added to the Income Tax Act – 1961. This section allows an income tax deduction of up to Rs 10,000 to an individual or a HUF for interest earned on the savings bank account held with a Bank, Post Office or a Society.This section is applicable with effect from April 01, 2013 and will apply from AY 2013-14 onwards.

If the interest earned out of saving bank account is more than Rs 10,000 . You will have to pay tax on the remaining amount over and above Rs 10,000 .This tax deduction is over and above Rs 1 lac deduction under Sec 80C.

Rs 10,000 is the total deduction allowed by combining all the saving bank accounts interest. If you earn Rs 6,000 from each of 3 different accounts (Total Rs 18,000) , you will get deduction of Rs 10,000 and pay tax on remaining Rs 8,000.

So you can keep upto 2.5 lacs as balance in a savings bank offering 4% or 1.4 lacs in a bank offering 7% and enjoy nil tax-liability.

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Flat Sizes

September 13, 2013 2 Comments

wealthymatters The picture above shows the average flat size in different countries across the world.

Here’s what’s happening to flat sizes in India:

Property developers have cut down on the size of residential apartments by about a third in Mumbai and Delhi over the past five years in a bid to contain prices and push sales in a tepid market. However,while smaller apartments appear to have become the norm Mumbai and Delhi, there is a varying rise in the median apartment sizes in other cities including Bangalore, Chennai, Pune, Hyderabad and Kolkata. Read more of this post

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The South Delhi Property Market

September 13, 2013 Leave a comment

wealthymatters Prices of homes in upscale South Delhi have dropped by 20 per cent-35 per cent over the last one year, with developers and cash-strapped investors offering big discounts to dispose off their assets in a slowing economy.

Till about six months ago, discounts on new homes in the area were being offering only by developers facing oversupply. But with the economic situation worsening, this category of sellers has expanded to include cash-strapped investors and businessmen who are keen to sell the high-end apartments they had picked up some years ago.Some people over leveraged themselves by buying multiple properties when the going was good. Now with the market slowing down, they are looking at exiting but are unable to find buyers,They have no option but to reduce their price expectations, hence profits.

The situation offers an opportune time for bargain hunters looking for distress sales.Those, who are in businesses that are in perpetual demand, are the ones lapping up these properties at great discounts. Read more of this post

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Yes Lady Finance Co

September 12, 2013 Leave a comment

wealthymatters Yes! Now high end luxury bags are assets! At least in Hong Kong where the Yes Lady Finance Co, accepts them as collateral for loans.

This four-year-old company accepts purses on the spot, bringing in assessors from affiliate Milan Station Holdings Ltd.,a chain for luxury secondhand purses, to check the bags’ condition and authenticity.

Yes Lady provides a loan within half an hour at 80% of the bag’s value—as long as it is from Gucci, Chanel, Hermès or Louis Vuitton. Occasionally, a Prada purse will do the trick. Secondhand classic purses and special-edition handbags often retain much of their retail prices.

A customer gets her bag back by repaying the loan at 4% monthly interest within four months. Yes Lady says almost all its clients quickly pay off their loans and reclaim their bags. Read more of this post

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How To Save On Fuel Bills

September 12, 2013 Leave a comment

Wealthymatters

Petrol prices in Mumbai have moved to 81.57 from 69.83 a litre since May 1, a rise of 17% in the past four months, raising monthly fuel bills.

With crude prices continuing to remain high and the rupee depreciating sharply against the US dollar, petrol prices are likely to remain high in the near future,and spike in case of further uncertainty in the Gulf. Car drivers by changing driving habits and maintaining their cars well can bring down the monthly fuel bill by as much as 10-20%.

Driving habits play a major role in saving fuel. It is possible to drive the same distance in the same time and yet save on fuel provided you drive smoothly. Many of us tend to accelerate very fast even though we know there is a signal 100 metres ahead, brake suddenly or drive at a high speed on a much lower gear than we are supposed to. All these actions put pressure on the engine, which tends to guzzle more fuel in the process. If you change these habits alone, you could save as much as 10% in fuel costs. Read more of this post