Business Standard analyses one family's finances and suggests a way forward

Case study

Business Standard

There are some great buys after the government's announcement to revive their fortunes. But, hold the stocks for at least two to three years, say experts

Time to shop for PSU bank stocks

I have a joint home loan with my father. Can I take another joint loan with my husband? Will I get tax exemption on both?The tax law does not restrict the number of housing loans or joint housing loans for an individual. Of course, if you own more houses, you also have to pay taxes on the rent earned. Even if not rented out, you are required to pay tax on the notional rent. You will be able to claim interest as a deduction from the income taxable under the head 'income from house property', provided you are a co-owner. Where the house is self-occupied, the deduction on account of interest is limited to Rs 200,000 a year, provided the loan is taken on or after April 1, 1999, and the construction is completed within three years. Otherwise, the interest deduction will be limited to Rs 30,000 against the self-occupied property.My father recently sold  land in the village and wants to use the money to buy property in the city. Will he get long-term capital gains exemption?Tax laws exclude a

Taxation: Kuldip Kumar

Please bear with me, as I write one more article on my favourite bugbear - banks charging higher interest to existing home loan consumers, while laying a red carpet (and low rates) for new ones. This is a personal experience.I had taken a small home loan about two years ago from a bank (call it A), which has dwindled to single-digit lakhs due to repayments. The loan had been on very fine rates when taken but in the past two years, the bank had reduced its rate for new consumers such that I was now paying 10.50 per cent per annum, whereas A was charging 9.85 per cent to new consumers, which means I was overpaying interest of 0.65 per cent.In the normal course, I would have shifted the loan long before the differential became so large but the amount was not so large and I realised that personal finance columnists are subject to the same forces of inertia that they want lay consumers to overcome.I still loathe transferring the loan to another bank because the administrative road blocks er

Roadblocks to shifting loans continue

The banking regulator has had a clean note policy for a long while

Banks cannot reject notes with scribbles

While cover policies are available, these also come with quite a few conditions that might make it unviable

Should you insure your mobile or laptop?

Include digital assets in a will, as e-mail and social networking websites don't provide account access to legal heirs. To know what else you can do, read on

Planning your digital legacy

Business Standard brings you a snapshot of average current rates and unit sizes in localities that offer property in a price range of Rs 50 lakh-1 crore. If you are looking at buying real estate and your budget falls within this range, an idea about prevailing rates would come in handy

Realty check

I started working two years ago. So far, I've invested only in Public Provident Fund and bank fixed deposits. I want to invest in mutual funds. Which funds should I invest in? We assume your larger requirement would be to build a portfolio for achieving long-term financial goals. This can be achieved by investing a credible portion of your investments into equities. If your objective is to derive the twin benefits of tax exemption under Section 80C of Income Tax Act, 1961, and growth from equities, you could invest in equity-linked saving scheme.In case of a moderate risk appetite, it is better to stick to the conservative end of the equity fund spectrum. Consequently, we recommend investing in equity income funds (equity allocation ranging from 20 per cent to 40 per cent) or balanced advantage funds (equity allocation ranging from 30 per cent o 80 per cent). These funds are structured to invest in equities when markets are cheap and book profits when markets are rising, thus minimisin

Mutual Fund: Nimesh Shah

The past few years have accorded cult status to investors such as Peter Thiel, Ram Shriram, Accel India & Tiger Global. This is because the companies they backed - Facebook, Google and Flipkart, respectively - have become household names and metonyms for the new economy. Tales abound of how they had the prescience to spot these fledgling outfits, how they monetised that insight and had the patience to ride the wave, culminating in them becoming billionaires. The upwardly spiralling valuations of the next round of start-up companies such as Airbnb, Snapchat and Uber have added fuel to the fire.Such talismans have whetted the appetite of institutional investors worldwide, all of them eager to grab the next big thing. This has resulted in the tables being turned, with the moneybags courting start-ups in their 'garages', rather than the other way round. The search for the next 'unicorn' (a start-up with a valuation of $1 billion) has often led to a 'spray-and-pray' approach, with insti

Investing in start-ups: The search for the next big hit

However, it is important to have comprehensive medical insurance before you buy these additional covers

Add critical illness policies to your insurance portfolio

Steep corrections in Delhi & Mumbai in the late 1990s had spurred the demand. This could happen againThe real estate sector has been hit by twin challenges of growth recession and high inflation. This double whammy has reduced demand for both commercial and residential real estate. At the same time, realtors have failed to curtail supply.There is unoccupied real estate (offices, residential complexes, malls) scattered across the country and there are unfinished projects in the pipeline. In almost all urban areas, 10-20 per cent of commercial space lies unoccupied. Over-supply in residential units is worse. At the same time, there is a shortage of residential units at the middle to lower end of the spectrum.At the high-end, in Delhi-NCR, Mumbai, Bengaluru, Chennai, Hyderabad and Kolkata, residential over-supply is huge. A recent report by Knight Frank claims NCR home sales are down 50 per cent in January-June versus January-June 2014. About 189,000 units are estimated unsold in NCR

Recession, inflation haunt real estate

Liquidate FDs, MFs and insurance first. Sell the property if bought for investment purpose

When home loan default is imminent

"Higher sales tax proposed if you pay by credit card" - Around the turn of the century, I remember reading headlines like these, as cash-strapped state governments thought up ever newer ways of raising revenues. Since credit cards were considered a rich man's tool, this method of raising revenues was considered okay. From there to now, when the government has put out a draft proposal for facilitating electronic transactions, it has been a long journey indeed.The benefits of electronic payments to both the consumer and the government are already well-documented. I am addicted to English crime serials where I see many crimes being solved by following the money trail, just like you see Indian crime serials showing crimes being solved by following mobile phone usage. This is simply an aside to point out how thoroughly our lives will change, should payment by electronic means become as widespread as mobile usage is today.The bulk of citizens do not have any unaccounted money and, therefore,

Cash or card? That will be 2% extra for the cash payment, Sir!

Sellers get logistical, financial and other support but customer feedback is critical and poor ratings can get sellers suspended

Want to sell online?

Business Standard analyses one family's finances and suggests a way forwardStatus & GoalsKetan works as a general manager, operations, with a speciality chemicals firm in Navi Mumbai, while his wife, Usha, is a homemaker. They have two children. The couple wants to plan for their children's higher education and marriage after which they want to plan for their retirement.

The onus is on the customer to prove his innocence. Banks don't take responsibility

Litigation is the only recourse for banking frauds

For those in the top bracket, post-tax yield is higher than other comparable investment options. However, investors in lower tax brackets might be better off putting their money elsewhere

Tax-free bonds attractive despite lower rates

If I invest in NPS, can my office refuse to take note of it while calculating my tax?

Readers' Corner: Taxation

Bahadurgarh enjoys superlative connectivity with Delhi and Gurgaon via NH-10 and is also well-connected via the Kundli-Manesar-Palwal Expressway

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