FIXED INCOME


The government on Friday lowered the interest rate on small savings schemes, including Public Provident Fund (PPF), by 0.1 per cent for April 1-June 30 period.   Accordingly, interest rates for small savings schemes are to be notified on quarterly basis.   "The government has...

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Senior Citizen’s Savings Scheme (SCSS) is a good fixed income product that offers tax-saving as well. An SCSS account can be opened by an individual who has reached 60 years of age on the date of opening of the account. It can also be opened by a person of age 55 years or above (but less than...

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If a property-owner is getting a rent of more than Rs50,000 per month (pm), then the rent-payer is required to deduct tax at source (TDS) @5%. It will create a trail for the income-tax (I-T) department to ensure that the property-owner has shown the rent in her/ his tax returns and has paid...

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Infusing some amount of secondary market liquidity can help attract retail investors to enter the corporate bonds space, a top Securities Exchange Board of India (Sebi) official said on Tuesday.   "As retail investor, when I get into bonds, I also think about liquidity. When I put...

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The Union Budget for 2017 eliminated the loophole regarding tax exemption of interest on home loan on property let out which was helping property hoarders. The set-off loss, calculated as home loan interest minus the rental income, will now be restricted to Rs2 lakh.  Additional loss can be...

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IANS 22 February 2017
Union government securities' (G-sec) yields declined sharply during the third quarter ended December 2016 on account of the demonetisation drive that led to a surge in bank deposits and bullish market sentiment, an official said on Tuesday.   "G-sec yields declined sharply across the...

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IANS 17 February 2017
The Reserve Bank of India (RBI) on Thursday permitted multilateral and regional financial institutions to invest in rupee-denominated bonds.   "In order to provide more choices of investors to Indian entities issuing rupee-denominated bonds abroad, it has been decided to also permit...

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Looking for a higher interest rate on fixed deposits (FDs)? You have the option to go to small finance banks (earlier non-banking finance company—NBFC) licensed by the Reserve Bank of India (RBI). With competition among small finance banks (SFBs), customers can expect to get interest rates up...

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Two mutual fund (MF) companies are offering the option of instant redemption credited to your savings account within minutes. The idea is to make the liquid/ultra short-term (UST) MF scheme to work like a savings account, with money being accessible immediately.    It is certainly an...

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The government’s move to demonetise Rs1,000 and Rs500 currency notes has led to a lowering of bank fixed deposits (FD) rates. Low bank FD rates, coupled with taxes, can be disastrous for those depending mainly on income from their savings.    Another option is investing in small...

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With falling interest rates and the need to search for good fixed-income investment options without risk to the principal, media attention has turned to the languishing product offering 8%pa returns and carrying sovereign guarantee. It is government of India (GoI) savings (taxable) bonds,...

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The government’s move, to demonetise Rs1,000 and Rs500 notes to curb black money in the system, has led to a lowering of bank fixed deposits (FD) rates. Low bank FD rates, coupled with taxation as per individual tax bracket, can be disastrous for savers. However, savers still have some...

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The government’s move to demonetise Rs1,000 and Rs500 currency notes, to curb black money, has led to lowering of interest rates on bank fixed deposits (FDs). Low bank FD rates, coupled with taxation as per individual tax bracket, can be disastrous for savers. Should you invest in liquid or...

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The government’s move to demonetise Rs1,000 and Rs500 currency notes, to curb black money from the system, will also lead to lowering of bank fixed deposit (FD) rates. Banks have been sending SMSes urging customers to visit their braches to deposit cash. The cash deposited by customers will...

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The Reserve Bank of India (RBI) had fixed the issue price of sovereign gold bonds (SGB) at Rs2,957/gram (gm) for the sixth tranche of subscription (from 24th October to 2nd November). It was touted as the lowest subscription price in the current financial year, i.e., 2016-17. To make the...

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Post-office Monthly Income Scheme (POMIS) gives you guaranteed return on your investment. Currently, it offers 7.80%pa (per annum) payable as monthly income. The maturity term of POMIS is five years. There is no tax deducted at source (TDS) on the interest for POMIS, but the interest income...

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Moneylife Digital Team 14 October 2016
Anumber of non-convertible debenture (NCD) issues have come up in the past few months. The last few issues included NCD issues of SREI Infrastructure Finance, Dewan Housing Finance Corporation (DHFL) and Indiabulls Housing Finance.    These issues have witnessed a lot of frenzy; some...

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Investment in Government Securities (G-Secs) for retail investor has, traditionally, been through the mutual fund (MF) route. With rate cuts by the Reserve Bank of India (RBI) for more than one year, MFs’ exposure to G-Secs has been on the rise. Investment through the MF route (growth option)...

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Several taxable bond issues will hit the market in absence of tax-free bonds. The NCD (non-convertible debenture) issue of Dewan Housing Finance Ltd opened on 29th August and closed in a day on 30th August. It offered interest rates of up to 9.25% for 84 months, 9.15% for 60 months and 9.10%...

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IANS 14 September 2016
Credit rating agency Moody's Investors Service on Wednesday said the State Bank of India's (SBI) issuance of additional tier 1 (AT1), Basel III compliance securities would set the pricing benchmark for other issuers.   Moody's said the SBI's issue price would also provide Indian banks...

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