G1 Google phone VS Iphone comparision

GI vs Iphone

Apple’s iphone and the G1 have a lot in common both are smart phones designed for users who want easier access to web than is offered by the current generation of blackberries. They share a lot of features – high resolution co lour display, motion sensors, support for GPS and Bluetooth 2.0, among others, buth there are real differences, which have been summarized as below.

G1 Google phone features and configuration
manafacture : HTC

Dimensions : 4.6*2.16*0.62” , 5.57 oz

Operating system : Android (open source)

Entry level price : $179 with 2 year contract

Voice and data : $70/mos for unlimited web, e-mail and text messaging

Network T-mobile : 3G in 21 markets

Screen : 3.2 inch touch sensitive

Text entry : slide-out QWERTY keybord

Device control : trackball and enter button, point and tap

Capacity : 1 GB memory card expandable to 8 GB

Battery : lithium ion removable

Talk time : 350 minutes 3 G 406 minutes 2G

Standby time : 402 hours 3G 319 hours 2G

Camera : 3.2 megapixel

Headphone jack : proprietary mini USB plug

Itunes support : DRM- Free only

DIGITAL COMPASS : Yes

Computer sync : No wireless only

Microsoft exchange : No

Installed base : 0


Iphone features and configuration

manafacture : Apple

Dimensions : 4.5*2.4*0.48”, 4.7oz

Operating system : Mac OS X (proprietary)

Entry level price : $ 199 with 2 year contract

Voice and data : $90/mos for unlimited web, e-mail and text messaging

Network T-mobile : AT &T: 3G in 200 markets

Screen : 3.5 inch multi touch

Text entry : onscreen virtual keybord

Device control : multi-touch point and tap

Capacity : 8 Gb or 16 GB not expandable

Battery : lithium ion non removable

Talk time : 300 minutes 3G 600 minutes 2G

Standby time : 300 hours

Camera : 2.0 megapixel

Headphone jack : standard headphone jack

Itunes support : DRM and DRM -free

DIGITAL COMPASS : No

Computer sync : Mac or pc

Microsoft exchange : Yes

Installed base : Approx 11 million units

IPhone’s rival is here :- GI Google phone

Here is the laydown of the GI Google phone launched on Tuesday

Five good things about GI

1] Capacitive touch screen: the GI has a capacitive touch screen just like the Iphone this means it is very responsive when you touch it

2] Easy to use Interface : the user interface is intuitive and dosent leave you wondering why did they do that : the layout is easy to understand

3] Having a keybord unlike the Iphone the Gi has a real physical keybord for typing out emails and messages

RBI rate hike again : gonna effect the payout

Inflation causes a Rate hike in interest which in turn effects loan payers

Reserve Bank asked the banks to park more cash with it and also increased its short-term key lending rates for them, the bankers across the board said that they would have to increase the lending rates for commercial and consumer loans, including for cars and housing.

The rates could rise by between 0.5-1.0 per cent, the bankers said, after RBI increased the cash reserve ratio by 0.25 per cent and the repo rate by 0.50 per cent.

The floating home loan rates currently vary between 9.75 per cent to 12.5 per cent, while that for fixed rates are 11.25 per cent to 14.75 per cent for a 20-year loan.

At the current rates, the EMI works out to be Rs 1,137 per lakh for the top-end floating rate home loans, which could increase to Rs 1,208 after a one-per cent hike.

Similarly, for the fixed-rate home loans, the EMI currently stands at Rs 1,299 per lakh for the top-end rate of 14.75 per cent and would increase to Rs 1,373 if the rates are increased by one per cent.

Leading banks currently charge a floating rate of about 11.5 per cent on a 20-year loan, for which the current EMI works out to be about Rs 1,067 per lakh. This would stand increased by Rs 70 to Rs 1,137 if the rates are revised upward by 1 per cent.

For the fixed rate home loans, the current rate charged by leading players is 14 per cent for a 20-year loan, with an EMI of Rs 1,299, which would increase by Rs 74 to Rs 1,373 for every Rs 1 lakh of loan.

The home loan rates have been rising fast in the recent past after a sharp plunge seen at the beginning of this decade. The home loan floating rates stood at about 14 per cent in early 2000, after which it started falling and had plunged by half to about seven per cent by the end of 2003.

However, it started rising thereafter and is now close to regaining its previous high.

Being lower by about two per cent than the fixed rate loans, floating rate home loans are said to be preferred by close to 90 per cent of the home loan customers.

Moreover, very few banks offer a fixed rate home loan, the interest rate for which remains truly fixed for the entire tenure of the repayment.

Independence day Celebration :- Bharat Mata Ki Jai

"Long years ago we made a tryst with destiny, and now the time comes when we will redeem our pledge, not wholly or in full measure, but very substantially. At the stroke of the midnight hour, when the world sleeps, India will awake to life and freedom. A moment comes, which comes but rarely in history, when we step out from the old to the new, when an age ends and when the soul of a nation, long suppressed, finds utterance.... We end today a period of ill fortune, and India discovers herself again."

- Jawaharlal Nehru (Speech on Indian Independence Day, 1947)
Commemorating the day India attained freedom (15th August); Independence Day is celebrated with flag hoisting ceremonies and cultural programmes in the state capitals. The Prime Minister's speech at the Red Fort in Delhi is the major highlight. The Delhi skyline gets dotted with thousands of kites taking to the sky this very day.

On 15 August 1947, India attained freedom from the British rule. Every year, August 15 is celebrated as the Independence Day in India. This national festival is celebrated with great enthusiasm all over the country.

The preparations begin a month in advance. Roads are decorated with flags and buntings. Buildings of national importance are illuminated.

History
At the stroke of midnight, as India moved into August 15, 1947, Jawaharlal Nehru, India's first Prime Minister, read out the famous speech proclaiming India's independence.

The moment ended three centuries of British colonial rule. The land was no longer the summer retreat of British sahibs who fancied spices, shikar, elephants and snake-charmers.

Independence was also the end of nearly a century of struggle for freedom, battles, betrayals and sacrifices. It also created a situation where we were responsible for ourselves.
But it wasn't a period of unqualified joy. For a lot of people, in spite of a new era promised by independence, partition was a painful reality and so was the bloodshed that accompanied it. That was 60 years ago. Much has changed; the struggle for freedom lives on in history books and memoirs, and on the tombstones of valiant martyrs. Politics has undergone a personality change from fiery idealism to a pragmatic cynicism. Karma drives the nation on its way forward, and population has crossed the billion mark.
But, come August 15, and the people put their troubles behind them for a while, as they stand up as a nation for the National Anthem. Along with the soaring cadences of the anthem, the hopes and dreams for a better tomorrow are renewed in political speeches and replays of the deeds of those who earned us our freedom.

Independence Day is an occasion to rejoice in our freedom and to pay collective homage to all those people who sacrificed their lives to the cause. But it is more than that. It also marks the coming together of more than 400 princely states into one nation - India. This was probably our biggest diplomatic success.

Each year, August 15 gives us the reason to celebrate all this, and do much more - it is a time to contemplate what we have and how we achieved it.

Though India had no dearth of religious and community festivals, there was, till Independence, no true national festival that the whole country could partake of. Independence Day, beginning as a day to commemorate the greatest moment in Indian history, has now come to signify a feeling of nationalism, solidarity and celebration.

Independence Day remained the sole national festival till India declared itself a republic in 1950. On January 26, 1950, Republic Day became the second Indian national holiday

The Indian festival 'Ganpati Papa Morya '. Learn about how the festival is celebrated by the Hindus

Lord Ganesh Chaturthi

Ganesh Chaturti is a festival that is celebrated for Lord Ganesh, who is the son of Lord Shiva and Parvati. Lord Ganesha is the elephant headed deity of Hinduism. Ganesh Chaturti is a very important festival that is celebrated widely in India over a period of ten days. The festival usually falls around the month of August or September. The Hindus believe that praying to Lord Ganesh during the festival will bring good luck and prosperity for the family. In addition to this Lord Ganesh is known to be a deity who protects people from obstacles in their lives.

Legend- How did the festival start about? The legend goes that there was a monster called Gajasura, a powerful monster was also a devotee of Lord Shiva. It seemed that the monster prayed for many years and as a result Lord Shiva, who was touched, granted him a boon. But the cunning monster asked Shiva to reside in his stomach. Since he had no choice, Lord Shiva granted his boon and went inside the belly of the monster.

Parvati, Shiva’s wife, who was searching for her husband, became frantic with worry and went to Lord Vishnu for help. Lord Vishnu, who assured Parvati that he would find Shiva, disguised himself as a street player and set out with Nandi, the sacred bull of Shiva, to find Shiva.
When they reached the monster Gajasura’s kingdom, Nandi danced to please the monster. The monster that was pleased to see the bull dancing he decided to reward the bull.
Nandi, the bull, asked for Lord Shiva as a reward and this made Gajasura realize that the street player was Lord Vishnu. He also realized that Lord Shiva couldn’t live in his belly forever and thus freed Lord Shiva. After that, he prayed to Shiva to make him immortal. To grant him the wish, Shiva severed Gajasura’s head and carried the head with him.
Meanwhile, Parvati who heard that Shiva’s out of the monster’s belly was joyful. In order to prepare for her Lord’s return she went to have a bath, but before that she asked someone to stand guard outside. She made a boy out of dough and named him ‘Vinayak’.
But when Lord Shiva returned, the boy refused to let him enter the palace, as he had never seen him before. This made Lord Shiva furious and thus he beheaded the boy and went inside. When he saw Parvati, he told her about his beheading of the boy. This shocked and upset Parvati. She told Shiva that ‘Vinayak’ was like a son to her and that she wanted him back alive. Thus Shiva put the head of Gajasura on the boy’s head and the boy ‘Vinayak’ came to life. Shiva also blessed him and announced that everybody would worship him on that day. And thus the festival ‘Ganesh Chaturti’ marks the day when ‘Vinayak’ came back to life.
Preparation- Before the start of the festival, people start to buy Ganesh idols. Shops sell Ganesh idols in various shapes, even large ones that can reach up to a height of several meters. Upon bringing the idol home, the Hindus start to decorate the idol with flower garlands and lights. The devotees chant prayers and during the prayers, flowers, rice & coins are used. After the ceremony, sweets and fruits are offered to guests.
Celebration - A place where Ganesh Chaturti is celebrated grandly is Mumbai. If you happen to visit Mumbai during this festive period you will marvel at the preparations for the celebration. In Mumbai, the preparations would be made at least one to two months before the start of the festival. No matter where you turn, you can catch a glimpse of Ganesh, as huge images of him are put up almost everywhere.
Lights are also put up to decorate the images. At home, Hindus pray to the God and on Ganesh Chaturti, the last day of the festival, you can expect to see a large crowd of about thousand devotees in a procession for the celebration. The idol of Ganesh is immersed in water and while this is done drums are played and devotional songs are sung.
The immersion of the idol in the water marks the end of the ten-day festival.

How to File your Income-Tax returns !!!! Easy ways to do it check it out

DONT PANIC TO FILE YOUR RETURNS JUST FOLLOW SIMPLE STEPS MENTIONED BELOW

Year End Again !!!. Guys time not to panic and whether you like it or not you have to comply You knew all along that it would come, whether you ignored or waited for it. Wake up and plan the way how to do it . As there is a right saying PAY TAX AND RELAX !!!!!

And you know you can't run away from it any more. THE MAGIC DATE for filing is 31 July, the day we are reminded of our bondage, the price we have to pay for many of the good things in our life.

Unfortunately it is the last day for filing income tax returns for all salaried Indians, be they resident or non-resident. Of course, you must have taken all the measures and investments possible to maximise your freedom from this bondage called TAX. Hope you guys have done everything that law permits you only that much. The rest, as they say, is illegal.

Returns words sounds confusing as you think when we are paying tax why is it called income tax return . Its just because the government provides you returns in the form of infrastructure roads and many other facilities.

Filing of tax is compulsory for everyone whose gross total income - the income under the five heads (salary, business, capital gains, house property or other sources) before allowing for any deductions such as insurance premium - exceeds the basic exemption limit.

For financial year 2007-08 (assessment year 2008-09), this limit was Rs 145,000 for women below 65 years of age, Rs 195,000 for senior citizens (above age 65 years) and Rs 110,000 for any other individual. It is compulsory for every person exceeding these limits to file the return before the prescribed date, even if their employer has taken care of their tax liabilities by reducing their salaries by the necessary amounts before paying the rest to them. Paid this way, it is known as tax deducted at source or TDS.

Filing of the form
There are two income tax return forms, ITR-1 and ITR-2, for salaried individuals. Your sources of income (they will fall under one or more of the five sources mentioned earlier) will decide your form. You will have to submit the filled form to the tax authorities and get an acknowledgement from them.
Income source decides return form
ITR-1: Income from salary, pension and interest earned in a financial year
ITR-2: Capital gains, income/loss from house property and income from any other source
Use ITR-1 to file your tax return if your income is from salary, pension or interest. In case of any capital gains, income or loss from house property and income from any other source, you will have to use ITR-2. You can go to www.incometaxindia.gov.in/download_all.asp to download these forms.
You will find ITR-1 relatively simple to fill up. A prerequisite for the exercise is Form 16, the certificate that comes from the employer showing the TDS from the income chargeable under the head salary. ITR-1 is almost a replica of Form 16. All you have to do is pick the numbers from Form 16 and put them in the ITR form.
Apart from salary income, there is an important component of income that many taxpayers ignore while filing their returns. It is the interest income earned from the funds lying in savings accounts in banks. Disclosing that, however small it may be, is mandatory.
You just have to add the total interest credited to your bank account in the last financial year. Scrutinise your income tax return to ensure that no taxable income is undisclosed. After you file your return, the tax authorities will hand you an acknowledgment. That's it, you are through with the filing of returns.
You will need to fill up ITR-2 if you, as a salaried individual, have made any capital gains. This form is filled in the same way as ITR-1. In addition, you will have to fill in income, if any, from house property and other sources.

How to file
The actual filing of return can be done either by using the traditional paper form or electronically, over the Internet. The second, known as e-filing, is fast catching up. The digital method is compulsory for companies, but optional for salaried individuals still. However, it may well become compulsory for individuals with a certain level of income in times to come. So, it may not be a bad idea to familiarise yourself with this process.
Before you start filing the return, check if you would be getting a refund from the IT Department or have to pay tax. In case of the latter, even before starting the filing process, you should first get hold of Form 280, fill it up and deposit it any bank along with the tax payable in cash or cheque. You can also pay tax through Internet banking. In both cases, you will get a receipt number which has to be quoted in the ITR form.
Checklist
* Keep ITR-1, ITR-2 forms handy

* Enter all the details in CAPITAL letters

* Ensure that name, address and other personal details are entered correctly

* Double-check PAN number, bank account details and the MICR code you write

* Store the acknowledgement safely property and income from any other source

Doing it offline
There are two options - you may either submit the ITR form at the nearest income tax office after filling it up yourself, or you may get a chartered accountant or a tax return preparer to do it for you. Try to visit the ITO well before the last date for filing return as crowds increase as 31 July draws near.
You may also take help from the public relations officer of the ITO to fill the form. No documents or investment proofs need to be attached with the form, but remember to bring photocopies or originals with you to the ITO. These will come in handy if you are asked to authenticate the maths.
The fee of a CA would depend on your income slab and the number of income sources. Typically, it would range from Rs 300 to Rs 2,000, depending on the complexities involved. One good thing about filing through a CA is that it would bring down the margin of error to nil. Also, depending on the acumen of the CA, which often gets reflected in the quality of his practice, he would suggest some tax saving ways to you for the future.

Doing it online
E-filing is done through sites authorised by the IT Department to file taxes on your behalf. To e-file, you will have to input the details of Form 16 in the software of the website, which would automatically generate an electronic return in XML format.
This format helps in sharing of structured data across different information systems. A PDF file of the relevant ITR form is also created along with the XML format. You can download this ITR form, submit it at the ITO and get an acknowledgement.
Save the XML file to your desktop and then upload it on incometaxindiaefiling.gov.in - the IT Department site. Some sites also have provision for online payment of tax. Use of a digital signature will render the e-filing process complete without involving paperwork and visits to the ITO.
In case DS is used, the acknowledgement will be emailed to you. If you upload the file on the tax department's site without the DS, the acknowledgement, called ITR-V, emailed to you will have to be submitted at an ITO within 15 days of downloading it. A DS can be acquired from any of the agencies authorised by the government for the job, including the private and government websites meant for filing tax returns.
E-filing is not just convenient and saves time, it can also be done from anywhere. What is especially important is that the online method reduces or even eliminates the interface between the tax assessee and tax officials.

Online sites
Among the major sites offering e-filing facilities are Taxspanner, Taxsmile and Taxshax . You can either take printouts of the relevant ITRs from these three sites and physically submit them or upload your XML file on the IT Department's site.
Taxspanner uploads the taxpayer's file directly and emails ITR-V to him. With Taxsmile, you can submit the forms at any of its offices spread over the country. They will then forward it to the ITO.
All the three sites are secure and easy to navigate. The major difference among them is on two counts - the number of income sources covered and the process. Get clarity on the cost and features offered. The minimum cost package would normally be only for salary income. The advanced version might be required if you have income from other sources.
The tax sites also differ in the way they ask for information and allow you to input figures. Taxshax gets most of the figures filled up in a single page. Taxspanner has a step-by-step guide and takes one piece of information on one page. Taxsmile gives both these options.
Use of DS raises the cost of e-filing. The amount of this increase varies across tax sites. A DS can be obtained from Taxsmile for Rs 500. Apart from this, you will have to pay for the basic package. Your DS comes with a validity period, after which it has to be renewed.
A DS from Taxspanner, for example, is valid for two years. This site offers a deal in which you can file returns for three years at a cost of Rs 250 a year. To get your DS from a tax site, download the relevant form from it, attach the required documents, such as your identity and address proofs, and courier them to the address concerned. The entire process of acquiring a DS may take around 15 days.
A tax return can also be filed from the government site - incometaxindiaefiling.gov.in/portal/index.jsp" - meant for it. Your PAN will work as the username for registering at this site.

Should you go online?
Internet accessibility is growing, but it is still out of reach for many of the 40 million taxpayers. For those who have access to it and want to save time, the digital signature way looks ideal - you will be able to file the return in a few minutes from the comfort of your home or office. E-filing without the DS is almost the same as filing returns offline.
Tax laws can often seem like a cross between a Rubik's cube and Mutthiah Muralitharan's spin bowling. The three private tax sites get around this by making themselves friendly to taxpayers and not making filing of return dependent on an intricate understanding of the workings of tax laws. They empower with information and knowledge while taking the taxpayer step-by step through the entire process of tax filing. The details of the return filed get saved in the database of these sites and can be accessed anytime in the future.
If you have any specific doubts concerning the filing process, email the tax site to clear them. Getting clarity is important as some sites do not include things like income from business or profession, losses of earlier years brought forward or clubbed income. If tax is due, check if you can pay it through the site.

Stick to the deadline
Any method you choose going offline or online, make sure your meet the deadline of 31 July. If tax is due and return is not filed till 31 March of the following year, a penalty of Rs 5,000 is levied. Penalty may also have to be paid in the form of interest. Go ahead and file with a smile.

Friendship and love defined in a single photo!!!

A perfect picture of Love and friendship
Friendship and love. Both are so much related to each other. And both are so dissimilar!




Indeed, there is no comparison between love and friendship.

Amitabh bachan in Action !!!!!! Control

Abishekh Beta : AB Control Nahi HOTA !!!! Check for more news on Amitabh




HEY DAD NOW YOUR ARE OLD PLEASE RETIRE

7 investment risks and how to overcome them !! A strategy

Investment and Risk !!! tow sides of a Coin

The fact is that you cannot get rich without taking risks. Risks and rewards go hand in hand; and, typically, higher the risk you take, higher the returns you can expect. In fact, the first major Zurich Axiom on risk says: "Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough". Then the minor axiom says: "Always play for meaningful stakes".

The secret, in other words, is to take calculated risks, not reckless risks.

In financial terms, among other things, it implies the possibility of receiving lower than expected return, or not receiving any return at all, or even not getting your principal amount back.

Every investment opportunity carries some risks or the other. In some investments, a certain type of risk may be predominant, and others not so significant. A full understanding of the various important risks is essential for taking calculated risks and making sensible investment decisions.

Seven major risks are present in varying degrees in different types of investments.

Default risk

This is the most frightening of all investment risks. The risk of non-payment refers to both the principal and the interest. For all unsecured loans, e.g. loans based on promissory notes, company deposits, etc., this risk is very high. Since there is no security attached, you can do nothing except, of course, go to a court when there is a default in refund of capital or payment of accrued interest.

Given the present circumstances of enormous delays in our legal systems, even if you do go to court and even win the case, you will still be left wondering who ended up being better off - you, the borrower, or your lawyer!

So, do look at the CRISIL / ICRA credit ratings for the company before you invest in company deposits or debentures.

Business risk

The market value of your investment in equity shares depends upon the performance of the company you invest in. If a company's business suffers and the company does not perform well, the market value of your share can go down sharply.

This invariably happens in the case of shares of companies which hit the IPO market with issues at high premiums when the economy is in a good condition and the stock markets are bullish. Then if these companies could not deliver upon their promises, their share prices fall drastically.

When you invest money in commercial, industrial and business enterprises, there is always the possibility of failure of that business; and you may then get nothing, or very little, on a pro-rata basis in case of the firm's bankruptcy.

A recent example of a banking company where investors were exposed to business risk was of Global Trust Bank. Global Trust Bank, promoted by Ramesh Gelli, slipped into serious problems towards the end of 2003 due to NPA-related issues.

However, the Reserve Bank of India's [Get Quote] decision to merge it with Oriental Bank of Commerce [Get Quote] was timely. While this protected the interests of stakeholders such as depositors, employees, creditors and borrowers was protected, interests of investors, especially small investors were ignored and they lost their money.

The greatest risk of buying shares in many budding enterprises is the promoter himself, who by overstretching or swindling may ruin the business.

Liquidity risk

Money has only a limited value if it is not readily available to you as and when you need it. In financial jargon, the ready availability of money is called liquidity. An investment should not only be safe and profitable, but also reasonably liquid.

An asset or investment is said to be liquid if it can be converted into cash quickly, and with little loss in value. Liquidity risk refers to the possibility of the investor not being able to realize its value when required. This may happen either because the security cannot be sold in the market or prematurely terminated, or because the resultant loss in value may be unrealistically high.

Current and savings accounts in a bank, National Savings Certificates, actively traded equity shares and debentures, etc. are fairly liquid investments. In the case of a bank fixed deposit, you can raise loans up to 75% to 90% of the value of the deposit; and to that extent, it is a liquid investment.

Some banks offer attractive loan schemes against security of approved investments, like selected company shares, debentures, National Savings Certificates, Units, etc. Such options add to the liquidity of investments.


The relative liquidity of different investments is highlighted in Table 1.



Table 1

Liquidity of Various Investments

Liquidity
Some Examples

Very high
Cash, gold, silver, savings and current accounts in banks, G-Secs

High
Fixed deposits with banks, shares of listed companies that are actively traded, units, mutual fund shares

Medium
Fixed deposits with companies enjoying high credit rating, debentures of good companies that are actively traded

Low and very low
Deposits and debentures of loss-making and cash-strapped companies, inactively traded shares, unlisted shares and debentures, real estate




Don't, however, be under the impression that all listed shares and debentures are equally liquid assets. Out of the 8,000-plus listed stocks, active trading is limited to only around 1,000 stocks. A-group shares are more liquid than B-group shares. The secondary market for debentures is not very liquid in India. Several mutual funds are stuck with PSU stocks and PSU bonds due to lack of liquidity.

Purchasing power risk, or inflation risk

Inflation means being broke with a lot of money in your pocket. When prices shoot up, the purchasing power of your money goes down. Some economists consider inflation to be a disguised tax.


Given the present rates of inflation, it may sound surprising but among developing countries, India is often given good marks for effective management of inflation. The average rate of inflation in India has been less than 8% p.a. during the last two decades.

However, the recent trend of rising inflation across the globe is posing serious challenge to the governments and central banks. In India's case, inflation, in terms of the wholesale prices, which remained benign during the last few years, began firming up from June 2006 onwards and topped double digits in the third week of June 2008. The skyrocketing prices of crude oil in international markets as well as food items are now the two major concerns facing the global economy, including India.

Ironically, relatively "safe" fixed income investments, such as bank deposits and small savings instruments, etc., are more prone to ravages of inflation risk because rising prices erode the purchasing power of your capital. "Riskier" investments such as equity shares are more likely to preserve the value of your capital over the medium term.

Interest rate risk

In this deregulated era, interest rate fluctuation is a common phenomenon with its consequent impact on investment values and yields. Interest rate risk affects fixed income securities and refers to the risk of a change in the value of your investment as a result of movement in interest rates.

Suppose you have invested in a security yielding 8 per cent p.a. for 3 years. If the interest rates move up to 9 per cent one year down the line, a similar security can then be issued only at 9 per cent. Due to the lower yield, the value of your security gets reduced.

Political risk

The government has extraordinary powers to affect the economy; it may introduce legislation affecting some industries or companies in which you have invested, or it may introduce legislation granting debt-relief to certain sections of society, fixing ceilings of property, etc.

One government may go and another come with a totally different set of political and economic ideologies. In the process, the fortunes of many industries and companies undergo a drastic change. Change in government policies is one reason for political risk.

Whenever there is a threat of war, financial markets become panicky. Nervous selling begins. Security prices plummet. In case a war actually breaks out, it often leads to sheer pandemonium in the financial markets. Similarly, markets become hesitant whenever elections are round the corner. The market prefers to wait and watch, rather than gamble on poll predictions.


International political developments also have an impact on the domestic scene, what with markets becoming globalized. This was amply demonstrated by the aftermath of 9/11 events in the USA and in the countdown to the Iraq war early in 2003. Through increased world trade, India is likely to become much more prone to political events in its trading partner-countries.

Market risk

Market risk is the risk of movement in security prices due to factors that affect the market as a whole. Natural disasters can be one such factor. The most important of these factors is the phase (bearish or bullish) the markets are going through. Stock markets and bond markets are affected by rising and falling prices due to alternating bullish and bearish periods: Thus:

Bearish stock markets usually precede economic recessions.
Bearish bond markets result generally from high market interest rates, which, in turn, are pushed by high rates of inflation.
Bullish stock markets are witnessed during economic recovery and boom periods.
Bullish bond markets result from low interest rates and low rates of inflation.
How to manage risks

Not all the seven types of risks may be present at one time, in any single investment. Secondly, many-a-times the various kinds of risks are interlinked. Thus, investment in a company that faces high business risk automatically has a higher liquidity risk than a similar investment in other companies with a lesser degree of business risk.

It is important to carefully assess the existence of each kind of risk, and its intensity in whichever investment opportunity you may consider. However, let not the very presence of risk paralyse you into inaction. Please remember that there is always some risk or the other in every investment option; no risk, no gain!

What is important is to clearly grasp the nature and degree of risk present in a particular case � and whether it is a risk you can afford to, and are willing to, take.


Success skill in managing your investments lies in achieving the right balance between risks and returns. Where risk is high, returns can also be expected to be high, as may be seen from Figure 1.


Figure 1: The Risk-Return Trade-Off


Once you understand the risks involved in different investments, you can choose your comfort zone and stay there. That's the way to wealth





30 tax smart ways plan to increase your take home pay

Internet Addiction is Bad *** STOP EMAILS***

Tomato Story

A Jobless man applied for the position of 'office boy' at Microsoft.
The HR manager interviewed him then watched him cleaning the floor as a test.

'You are employed' he said. Give me your e-mail address and I'll send you the application to fill in, as well as date when you may start.

The man replied 'But I don't have a computer, neither an email'.

'I'm sorry', said the HR manager. If you don't have an email, that means you do not exist. And who doesn't exist, cannot have the job.'

The man left with no hope at all. He didn't know what to do, with only $10 in his pocket. He then decided to go to the supermarket and buy a 10Kg tomato crate.
He then sold the tomatoes in a door to door round. In less than two hours,
he succeeded to double his capital. He repeated the operation three times,
and returned home with $60.

The man realized that he can survive by this way, and started to go everyday earlier, and return late. Thus, his money doubled or tripled everyday.

Shortly, he bought a cart, then a truck, and then he had his own fleet of delivery vehicles.

5 years later, the man is one of the biggest food retailers in the US
He started to plan his family's future, and decided to have a life insurance.

He called an insurance broker, and chose a protection plan.
When the conversation was concluded the broker asked him his email.
The man replied,'I don't have an email.'
The broker answered curiously, 'You don't have an email, and yet have succeeded to build an empire. Can you imagine what you could have been if you had an e mail?!!' The man thought for a while and replied, 'Yes, I'd be an office boy at Microsoft!'
Moral of the story

Moral 1
Internet is not the solution to your life.

Moral 2
If you don't have Internet, but work hard, you can be a millionaire.

Dont laugh it is Serious Story

30 tax-smart ways # Plan to Increase your take home Salary

Saving a rupee in tax means you have a rupee more to save, spend or invest as you wish. So, when negotiating or reviewing your salary package, you should choose perks which are both useful for you and your family, and which are also tax-smart.

This requires a basic understanding of taxes applicable to various perks. A basic rule to follow is to opt for those where the employer pays FBT (fringe benefit tax), not you. This minimizes the tax payable by both you and your employer -- what could be a better win-win than that?

Take, for instance, the case of a chauffeur with a salary of Rs 10,000 per month. If you pay the salary, you will be doing so out of your after-tax take home. This implies that ipso facto, you will be paying a tax of Rs 40,680 (= 33.9 per cent of Rs 120,000). If the employer pays the salary, the FBT works out only at Rs 7,416 ( = 30.9 per cent of 20 per cent of Rs 120,000) only!

Here is a check-list of 30 tax and perk benefits relating to salary that will help you work out a tax-smart salary package

1. The salary (basic + DA) should be low. The rest should come by way of such allowances on which the employer pays FBT and you don't pay any tax thereon.

2. Interest paid on housing loan is deductible u/s 24 up to Rs 1.5 lakh (Rs 150,000) on self-occupied property and without any limit on a commercial or rented house.

3. The repayment of housing loan from specified sources is also deductible irrespective of whether the house is self-occupied or given on rent within the overall ceiling of Rs 1 lakh of Sec. 80C.

4. Where the accommodation provided to the employee is taken on lease by the employer, the perk value is the actual amount of lease rental or 20 per cent of the salary, whichever is lower. Understandably, if the house belongs to a family member who is at a low or nil tax zone the family benefits. Yes, the maximum benefit accrues when the rent is over 20 per cent of the salary.

5. A chauffeur driven motor car provided by the employer has no perk value. True, the company would pay FBT. It is @30 per cent on 20 per cent of the value thereby bringing down the effective rate to 6 per cent. Better still, the employee owns the car and the employer pays the cost of petrol and maintenance.

6. Contributions up to Rs 1 lakh (Rs 100,000) per annum to Superannuation Fund of the employee is not taxed either as fringe benefit in the hands of the employer or as perk in the hands of the employee.

7. Contributions to some specified schemes (Company PF, PPF, NSC, life insurance premia, etc.) qualify for a deduction u/s 80C from gross total income with an overall ceiling of Rs 1 lakh. PPF has a ceiling of Rs 70,000 to contributions made to the accounts of self and minor children whereas the contributions to accounts of self, wife and children (major or minor) attract the deductions.

8. Employer's contribution to Company PF in excess of 12 per cent of employee's salary is taxable. Employee contributes equal (or more) amount to his PF account. Again, any excess over 27 per cent of salary contributed by the employer to company Provident Fund and Superannuation Fund put together is to be treated as perks.

9. Any death-cum-retirement gratuity received up to Rs 3.5 lakh (Rs 350,000) -- subject to certain conditions -- is exempt.

10. Leave Travel Allowance given as reimbursement of expenses incurred by the employee and his family for traveling while on leave is exempt, once in two years.

11. Transport allowance for commuting between residence and place of duty is exempt up to Rs 800 per month.

12. Reimbursement, not exceeding Rs 15,000 in a year, for medical treatment from any doctor for himself and his family members is deductible.

13. Under section 80D, deduction up to Rs 15,000 paid as medical insurance premiums on the health of assessee himself, his spouse, parents (dependent or not) and dependent children is allowed. Where an individual has insured a senior citizen (parent or himself) a higher ceiling of Rs 20,000 is available. Additional deduction up to Rs 15,000 on premiums paid for parent/s of the assessee has been made available w.e.f. 1.4.08.

14. Professional tax paid by an employee is deductible u/s 16(iii).

15. ESOP was brought under the purview of FBT by Finance Act 07. The employer has a right to collect the FBT tax paid by him on ESOP from the employee. In that case, it will be treated as tax paid by the employee.

16. In respect of HRA, the least of the following is exempt from tax u/s 10(13A):

(a) 40 per cent of salary (50 per cent for Mumbai, Kolkata, Delhi and Chennai).
(b) HRA for the period the house is occupied by the employee.
(c) The excess of rent paid over 10 per cent of salary.
An employee living in his own house or where he does not pay any rent is not eligible for this exemption. If you are staying in a house belonging to your family members (preferably not your wife), start paying rent to the owner and ask for HRA from the employer.
17. A helper engaged for the performance of the duties of an office or employment of profit is not considered as a perk.

18. If the employer employs a gardener for the building premises belonging to the employer, it would not be treated as a perk. The possibility of it being extrapolated to other servants is logical.

19. Perk value of concessional loan to the employee for purchase of house or motor cars shall be the difference between the interest payable calculated at the rate of interest for similar loans, charged by SBI and the actual interest charged.

20. Loan for medical treatment specified in Rule-3A is exempt, provided it is not reimbursed under any medical insurance scheme. Where it is reimbursed, the perquisite value shall be charged from the date of reimbursement on the amount reimbursed but not repaid against the outstanding loan taken specifically for this purpose.

21. Small loans up to Rs 20,000 in the aggregate are exempt.

22. Expenses on meals provided to the employee during his hours of duty are not treated as perks. FA 08 has declared that expenditure on non-transferable pre-paid electronic meal cards is not a perk.

23. FA 08 has also declared that provision of creche facility for children of the employee and sponsoring of an employee sportsman is not a perk.

24. Employer pays FBT on the value of the gifts. Gifts up to Rs 50,000 received without consideration by an individual from any person are tax-free in the hands of the donee. However, the Department may claim that such gifts are in lieu of salary.

25. Employer pays FBT on the value of the facility of credit cards and expenses for the club.

26. Where a movable asset is transferred by an employer to his employee directly or indirectly, the perquisite value shall be the actual cost to the employer minus the cost of normal wear and tear @10 per cent for each completed year during which such asset was put to use. In the case of motor cars the normal wear and tear would be @20 per cent whereas in the case of computers, data storage and handling devices, digital diaries, printers, etc., it would be @60 per cent. These do not include household appliances (i.e., white goods) like washing machines, microwave ovens, mixers, hot plates, ovens etc.

27. Uniform allowance to meet the expenditure incurred on the purchase or maintenance of uniform for wear during the performance of the duties of an office or employment of profit is exempt.

28. Expenses for soft furnishings (table cloths, curtains, etc.) including maintenance at the residence for those officers entertaining guests at home for official purpose are also exempt.

29. Goods at concessional rates, membership of professional associations, subscriptions for technical and business journals and newspapers are not considered as taxable perks.

30. Payment or reimbursement by the employer towards bills on Telephones and cellular is not a perk.

Caution: If employer is exempt from FBT, employee pays the tax

Fringe Benefit Tax is not applicable to an employer who is an individual, HUF, any fund or trust or institution eligible for exemption u/s 10(23C), or registered u/s 12AA. Rule 3 has been amended so as to include valuation of perquisite in case of benefits provided by such employers to its employees w.e.f. FY 07-08 by Notification SO 1896(E) dt 7.11.07.

Dont land your self in debt

Do you splurge? Well, nothing wrong with that, so long as you are careful. You have every right to spend your hard-earned money, but overspending should not lead you to misery and debt. The economic boom has seen salaries rise and lifestyles change with people spending a lot on luxuries. Unfortunately, the economic prosperity has also seen a huge rise in personal debts.

While banks coax you to take loans for every reason, they will not help you when you are in a crisis. Debts wreck you financially as well as emotionally. So spend wisely. One needs to maintain a perfect balance between one's needs and wants to avoid debt trap.

Here follow some tips to avoid the deadly debt trap, but first the danger signals. . .

If your bank balance is not enough to meet your expenses till the end of the month, you are headed for trouble. You may think that you can always save the money later but it is not easy.
You are moving towards a debt trap if you are spending much more than you earn. Though loans and credit cards make you richer temporarily, it brings with itself a huge burden which will lead you to a debt trap.

And now simple, everyday tips to help you avoid debt. Most of you might already know this

Before buying an expensive product, think well, it is a necessity or a luxury? You have to make a clear distinction of things you 'want' and 'need'? Can do live without it? If yes, then avoid buying it just because your friends or relatives have it.
Planning to buy a car? Go for the most economical model. Most often people go by looks. But looks hardly matter after you get used to car. What matters is value for money.
Always think about the incidental costs after you take a decision to buy any expensive item. You may think that buying a car will just involve paying off the loan amount. It comes with lot of other maintenance charges, which you should be geared up to pay.
You may be tempted to buy a lot of things with credit cards. Use credit cards judiciously. One of the easiest ways of getting into a debt trap is through a credit card.

Never pay for daily requirements with credit cards. Once you get addicted, it is very difficult to get out of the credit trap.
Try to pay off the entire amount of outstanding dues within the last date. If you carry forward the dues, by just paying the minimum amount you end up paying a lot more in the long run. Banks charge the highest interest rates for personal loans and credit card dues.
Use credit cards only when you really think you should. Otherwise you end up spending money unnecessarily. Stay within 30% of your credit limit.
Set aside credit cards for a month and see how much money you can save. Resist the temptation to shop just to makeyourself happy. There may be many things you don?t need to spend on right now.
Never spend more than what you can afford to. Try to save atleast 10 per cent of your take home salary.

Always list out your daily expenses. You should know how you are spending your money. Do this for a month. You will surely find a way out to cut down expenses.
You must also check all bills very carefully: at a restaurant, or a shop, or even the bank. Your carelessness and ignorance can make you poorer.
You may dream of a fancy house in a posh locality but if you are going for a home loan, make sure monthly EMIs don't exceed 40-45 per cent of your take home salary. If you are going for car, or any other loan, your EMIs should not exceed more than 10-15 per cent of the take home salary.
Always be practical about spending money. Set aside a certain amount for shopping, household needs, utility payments and extra expenses. Make a budget and stick to it.
Always save a certain amount every month. One way would be to ask the bank to directly set aside a sum as a recurring deposit or any savings plan that suits you. So money will get automatically saved into your account.

Many people have a tendency to impress people by throwing parties and buying expensive gifts. Don't indulge in such activities if you can't afford to. You can cut down huge expenses by meeting up with friends in a garden, organising a small picnic than spending money on huge restaurant bills.
Always keep a contingency fund ready. You never know when an emergency may arise. Borrowing from the bank or anyone else is not a good idea. With interest rates soaring, it is better to keep away from personal loans.
If you do not have ready cash to pay for anything, don't accept offers on credit unless you read the fine print of the offers. Many shops offer good on credit. Make sure you know every detail about the deal.

Income Tax refund now check online

Individual taxpayers can now track the status of their income tax refunds online.


To begin with, the facility has been made available in six cities -- Delhi, Mumbai, Bangalore, Chennai, Kolkata and Patna -- and will be extended nationwide in a phased manner.


In other cities, the refunds will continue to be issued by the Income Tax Department on a first-come-first-served basis.


To check the status of their refund, taxpayers can log in at https://tin.tin.nsdl.com/oltas/refundstatuslogin.html

If there is a problem, they can contact the assessing officer or the refund banker, the State Bank of India [Get Quote].


In case of any grievance, taxpayers can also contact the additional commissioner in charge of the range or the income tax ombudsman.


This facility is not for companies and trusts.


For faster processing of refunds, details of bank account like the bank, branch and MICR code (a nine-digit number on the bottom of the bank cheque) should be clearly mentioned in the tax return form.


Under the refund banker scheme, the refund amount will be either transferred electronically to the bank account of the taxpayer or be sent by way of a cheque delivered by courier.


The Income Tax Department plans to substantially reduce the return processing time, which is at present at least four months.


The department plans to set up six large central return processing centres in different parts of the country. All the returns captured in digital format will be processed at these centres.


The central return processing scheme was announced in the Budget 2008-09.

Sachin tendulkar in a college drama as a sati savatri

YES THIS IS MASTER BLASTER SACHIN TENDULKAR IN A COLLEGE DRAMA






KYA COOL HE HUM AUR IS ME HE DUM

Smoking is injurious to health ! Quit

Hey guys this is a creative image and do believe it its a fact


OK so this is a place for smokers.

Comparison study : Appraisal and Resignation

Appraisal VS Resignation

In Appraisal meeting they will speak only about your weakness, errors,
failures.
In resignation meeting they will speak only about your strength,
achievements, success.

In Appraisal you may need to cry and beg for even 10% hike.
In resignation you can demand for more than 60-70% hike.

During Appraisal, they will deny promotion saying you didn't meet the
expectation, you don't have leadership qualities.
During resignation, they will say you are the core member of team, you have
to take the project in shoulder and lead to success.

There is 90% chance for not getting incentives after appraisal.
There is 90% chance of getting on-site opportunity after resignation.

CA Wife and CA husband

When I told my mom that I wanted a professional woman as my wife, she got
me one; a Chartered Accountant.She uses LIFO method while taking out the
refrigerated food.

She thinks I am no good at figure work. Fine with me, for now she handles
the budget of the house. Initially she used to send me a bill at the month
end, but when I told her that I am not her client but her husband, she
asks for the money in advance. The expenses had been rising steadily over
the months, so one day I snooped into the papers maintained in a current
file. No wonder! She was charging conveyance and overtime to the house
budget. She is crazy, I tell her but she corrects me. No my darling, I am
the auditor. I fail to see the light. Every scrap of the paper in our
house is filed. She tells me as per some Ordinance she must keep a copy of
every thing for at least ten years before destroying it. I am worried.

The other day we had an hour-long fight. Later, I got to know that she had
charged that hour to a client of hers, in the time sheet. My time was put
down as unoccupied. She says that she says that she loves me and I tell
her that I love her too. However, she never believes me. She says that
there is susceptibility of it being a misstatement. Duh! She wants my
representation on this! Last year our house accounts got a qualified
opinion I had not kept the supporting etc. of my purchases. Not a long
time back my brother's wedding was to be solemnized. Wedding cards had
been sent.

After some time I started receiving a steady trickle of letters. I was
puzzled until my wife was explained that external evidence was more
reliable. She had called for confirmations from all those to whom cards
were sent.

When she cooks, my wife at times does not go by recipe. Where the recipe
says add half-teaspoon vinegar, one tsp black salt or one teacup of water,
she ignores them. She says that they are not material when taken in
context of whole meal being prepared.

She is crazy, I tell you. Surprisingly everybody calls her an auditor,
instead. I checked the dictionary and it did not state that auditor is a
synonym for crazy.

The dictionary must be outdated. When we got married, she had given me an
Engagement Letter and I Had said how cute-how sweet.Now she gives it to me
every year saying that her standards state that it must be sent anew if
there is any indication that I have misunderstood the objective and scope
of engagement. Huh! Apart from sending me the engagement letter once again
she says I can't get rid off her just like that. She says that she has the
right of being heard before I appoint some one else. It seems I must keep
reading one local and another English newspaper published and circulated
in the vicinity of our house for more details. Phew! For a minute, I
thought that we had jeopardized our going concern status. Duh! Dare I say
so??

I am told by one of my female colleagues who is married to a CA that the
scenario is even worse when the guy is a CA.

Apparently he capitalized the wedding expenses as preliminary expenses and
is writing it off every year.Also the time he spent dating his wife before
marrying her is still under consideration for valuation under
AS-26...valuation of intangible assets.

So guys please think twice....should u really marry a CA? and yes please
discount it by the appropriate rate to arrive at the present value of the
risk of doing so !!!!!!

Year Ending requirments for Income-Tax assesse

The Income Tax department does not want too many papers as proof of investments made or expenses incurred. But it is always better to file them now.
So please rush! Here are ten things to do before March 31, 2008 or before the financial ends:
1. If you are claiming deduction for house rent allowance on account of actual rent paid, collect the rent receipts from the owner and keep them in your possession.

2. If you received any gifts during the year, please collect the gift deeds. The deeds should clearly state that you received the gift without any consideration.

3. In case you have changed employment during the financial year, you have to go back to your previous employer and collect the Form 16.

4. If you have donated to charitable trusts, obtain a receipt and also a certificate saying the trust is an approved one under Section 80G of the Income Tax Act, 1961.

5.Collect all your bank statements and TDS certificates, if any. This will help you calculate your earning from bank interest and deposit advance tax if required.

6. If you have a running home loan, you must collect the certificate of repayment of principal amount and the interest paid during the financial year from the bank.

7. If you are claiming an interest-paid deduction on an educational loan, get a certificate of repayment made in the financial year where the interest is stated separately.

8. Keep all receipts for contributions made to schemes listed under Section 80C, such as insurance payment, PPF, ELSS, and children's tuition fees.

9. In case you are claiming a deduction for any medical disability under Section 80U, do not forget to collect a certificate of disability from an authorised doctor.

10. If you are claiming deduction for payment of health insurance premium, you need to keep the premium receipt indicating that the premium was paid in cheque

Games time guys enjoy it

Blog Games

STATE OF INDIAN ECONOMY [INFLATION]

Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair." -- Sam Ewing.
Inflation has hit a ten-month high of close to 6 per cent in India, breaching the Reserve Bank of India's target of 5 per cent. The Wholesale Price-based Index rose to 5.92 per cent for the week ended March 8 from 5.11 per cent in the previous week as food products turned expensive in line with the global trend.

Everyone is facing the brunt of rising prices. Prices of all essential commodities are rising not just in India but across the world due to a fall in supply. Inflation has spiralled all over the world. With India importing food items, it is only adding more woes to the people.

The Indian economy is also facing a slowdown. The markets have also shed huge gains -- March 25 was a sort on aanomaly -- taking a cue from global meltdown. Industrial production has slowed down, further decelerating the economy.

PAN CARD QUERIES SOLVED [APPLY NOW]

1. What Is PAN?
Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department.
A typical PAN is AABPS1205E.
{Section 139A(7) Expln (b) and (c)}

2. Why Is It Necessary To Have PAN?
It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it will be mandatory to quote PAN on challans for any payments due to Income Tax Department.
{Section 139A (5) (a) and (b)}

It is also compulsory to quote PAN in all documents pertaining to financial transactions notified from time-to-time by the Central Board of Direct Taxes. Some such transactions are sale and purchase of immovable property or motor vehicle or payments in cash, of amounts exceeding Rs. 25,000/-to hotels and restaurants or in connection with travel to any foreign country. It is also mandatory to mention PAN for obtaining a telephone or cellular telephone connection. Likewise, PAN has to be mentioned for making a time deposit exceeding Rs. 50,000/- with a Bank or Post Office or depositing cash of Rs. 50,000/- or more in a Bank.
{Section 139A (5) (c) read with Rule 114B}

3. How does Income Tax Department ensure that PAN is quoted on transactions mentioned above?
It is statutory responsibility of a person receiving document relating to economic or financial transactions notified by the CBDT to ensure that PAN has been duly quoted in the document.
{Section139A (6)}

4. Is it compulsory to quote PAN on return of income?
Yes, it is compulsory to quote PAN on return of income.

5. How will these authorities verify PAN?
A facility for verifying PAN is available on the website of the Income Tax department.

6. Who must have a PAN?
i. All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN.
{Section 139A (1) and (1A)}
ii. Any person, who intends to enter into financial transaction where quoting PAN is mandatory, must also obtain PAN.
{ Section 139A (5) (c) read with Rule 114B}
iii. The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person.
{Section 139A (2) and (3)}

7. Can a person obtain or use more than one PAN?
Obtaining or possessing more than one PAN is against the law.
{Section 139A (7)}

8. Where to apply for PAN?
In order to improve PAN related services, the Income Tax department has authorized UTI Investor Services Ltd (UTIISL) to set up and manage IT PAN Service Centers in all cities or towns where there is an Income Tax office and National Securities Depository Limited (NSDL) to dispense PAN services from TIN Facilitation Centers. For convenience of PAN applicants in big cities, UTIISL has set up more than one IT PAN Service Center and likewise there are more than one TIN Facilitation Centers.

9. How to apply for a PAN? Can an application for PAN be made on plain paper?
PAN application should be made only on Form 49A. A PAN application (Form 49A) can be downloaded from the website of Income Tax department or UTIISL or NSDL
(www.utiisl.co.in, www.incometaxindia.gov.in, www.tin.nsdl.com) or printed by local printers or photocopied (on A4 size 70 GSM paper) or obtained from any other source. The form is also available at IT PAN Service centers and TIN Facilitation centers.

10. Can an application for PAN be made in Form 49A obtained from anywhere?
Yes, PAN application may be made on Form 49A obtained from any source other than IT PAN Service Centers or TIN Facilitation Centers. For instance, a PAN application may be made on form downloaded from the website of Income Tax department or UTIISL or NSDL; or on form printed by local printers or a photocopy of downloaded or printed form.

11. Can an application for PAN be made through Internet?
Yes, application for fresh allotment of PAN can be made through Internet. Further, requests for changes or correction in PAN data or request for new PAN card (for an existing PAN) may also be made through Internet. For more details visit (www.tin-nsdl.com)

12. How do I get a PAN allotted quickly (TATKAL)?
If an application for allotment of PAN is submitted through Internet and payment made through a 'nominated' credit card, the PAN is allotted on priority and communicated through email.

13. How to find an IT PAN Service Center or TIN Facilitation Center?
Location of IT PAN Service Centers or TIN Facilitation Centers in any city may be obtained from local Income Tax Office or any office of UTI/UTIISL or NSDL in that city or from websites of the Income Tax department
www.incometaxindia.gov.in or UTIISL (www.utiisl.co.in) or NSDL (http://www.tin.nsdl.com)

14. What services are provided by these IT PAN Service Centers or TIN Facilitation Centers?
IT PAN Service Centers or TIN Facilitation Centers will supply PAN application forms (Form 49A) and forms for 'Request For New PAN Card Or/ And Changes In PAN Data', assist the applicant in filling up the form, collect filled form and issue acknowledgement slip. After obtaining PAN from the Income Tax department, UTIISL or NSDL as the case may be, will print the PAN card and deliver it to the applicant.

15. What if I submit incomplete Form 49A?
IT PAN Service Centers or TIN Facilitation Centers shall not receive any incomplete and deficient PAN application. However, these centers will assist applicants to correctly fill up form 49A or 'Request For New PAN Card Or/ And Changes In PAN Data', as the case may be.

16. What documents and information have to be submitted along with the application for Form 49A?
a. a. Individual applicants will have to affix one recent, coloured photograph (Stamp Size: 3.5 cms x 2.5 cms) on Form 49A;
b. b. Any one document listed in Rule 114 must be supplied as proof of 'Identity' and 'Address'; and
c. c. Designation and code of the concerned Assessing Officer of Income Tax department will have to be mentioned in Form 49A.

17. Which documents will serve as proof of 'Identity' in case of Individual applicants, including minors and HUF applicants?
Copy of school leaving certificate or matriculation certificate or degree of a recognized educational institution or depository account or credit card or bank account or water bill or ration card or property tax assessment order or passport or voter identity card or driving license or certificate of identity signed by a MP or an MLA or a Municipal Councilor or a Gazetted Officer;

In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof of Identity;

In case PAN application is made on behalf of a HUF, any of above documents in respect of Karta of the HUF will serve as proof of Identity.

18. What is proof of 'Address' for Individual applicants, including minors and HUF applicants?
Copy of electricity bill or telephone bill or depository account or credit card or bank account or ration card or employer certificate or passport or voter identity card or property tax assessment order or driving license or rent receipt or certificate of address signed by a MP/ MLA/Municipal Councilor / a Gazetted Officer;

In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof of Address;

In case PAN application is made on behalf of a HUF, any of above documents in respect of Karta of the HUF

19. What documents will serve as proof of Identity and Address for other applicants?
Copy of Certificate of Registration issued by the Registrar of Companies or Copy of Certificate of Registration issued by the Registrar of Firms or Copy of Partnership Deed or Copy of Trust deed or Copy of Certificate of Registration Number issued by Charity Commissioner or Copy of Agreement or Copy of Certificate of Registration Number issued by Charity Commissioner or Registrar of Co-operative Society or any other Competent Authority or any other document originating from any Central or State Government Department establishing Identity and Address of such person.

20. How to find 'Assessing Officer code'?
Assessing Officer code may be obtained from Income Tax Office where you submit your return of income. Applicants who have never filed return of income may find out Assessing Officer code with the help of IT PAN Service Center or TIN Facilitation Center or jurisdictional Income Tax Office.

21. Is a photograph compulsory for making an application for PAN?
A photograph is compulsory only in case of 'Individual' applicants.

22. What is the procedure for applicants who cannot sign?
In such cases, Left Hand Thumb impression of the applicant should be affixed on Form 49A or 'Request For New PAN Card Or/ And Changes In PAN Data' at the place meant for signatures and got attested by a Magistrate or a Notary Public or a Gazetted Officer, under official seal and stamp.

23. Is father's name compulsory for female (including married/divorced/widow) applicants?
Only father's name is required to be filled in the PAN application (Form 49A). Female applicants, irrespective of marital status, should write only father's name in the PAN application

24. Is it compulsory to mention telephone numbers on Form 49A?
Telephone number is not compulsory, but if provided it may help in faster communication.

25. Who can apply on behalf of non-resident, minor, lunatic, idiot, and court of wards?
Section 160 of IT Act, 1961 provides that a non-resident, a minor, lunatic, idiot, and court of wards and such other persons may be represented through a Representative Assessee. In such cases, application for PAN will be made by the Representative Assessee.

26. I had applied to the department but I do not know my PAN?
Please contact the Aaykar Sampark Kendra (ASK) at 0124-2438000 (or 95124-2438000 from NCR) or visit thewww.incometaxindia.gov.in and go to 'know your PAN'.

27. Are there any charges to be paid at IT PAN Service Centers or TIN Facilitation Centers?
UTIISL and NSDL have been authorized to collect Rs.60 + Service Tax as applicable, per PAN application and this includes cost of a tamper proof PAN card. This amount will have to be paid in cash at IT PAN Service Center or the TIN Facilitation Center.

28. Do you need to apply for a PAN when you move or transfer from one city to another?
Permanent Account Number (PAN), as the name suggests, is a permanent number and does not change during lifetime of PAN holder. Changing the address or city, though, may change the Assessing Officer. Such changes must, therefore, be intimated to nearest IT PAN Service Center or TIN Facilitation Center for required correction in PAN databases of the Income Tax department. These requests will have to be made in a form for 'Request For New PAN Card Or/ And Changes In PAN Data'

29. I had applied to UTITSL/ NSDL a month ago but I have not received my PAN card and I have to file my return of income.
Please contact Aaykar Sampark Kendra (0124-2438000 or 95124-2438000 from NCR) orwww.incometaxindia.gov.in or send an email to pan@incometaxindia.gov.in.

30. Will the existing PAN cards issued by the Department remain valid?
All PAN allotted and PAN card issued by the Department will remain valid. All persons who have been allotted a PAN need not apply again.

31. Income Tax Department has issued me a PAN card; can I obtain a new tamper proof PAN card?
For obtaining the tamper proof PAN card an application will have to be made in the form for 'Request For New PAN Card Or/ And Changes In PAN Data' to IT PAN Service Center or TIN Facilitation Center, in which existing PAN will have to be indicated and old PAN card surrendered. The payment of Rs.60 + Service Tax as applicable, will also have to be made.

32. I had applied for PAN and received PAN number but have not received the PAN Card?
Apply in the form for 'Request For New PAN Card Or/ And Changes In PAN Data' at any IT PAN Service Center or TIN Facilitation Center quoting the PAN allotted to you.

33. How will the new PAN card be delivered to me?
The UTIISL or NSDL, as the case may be, will ensure delivery of new PAN card at the address indicated by you in the PAN application form or form for 'Request For New PAN Card Or/ And Changes In PAN Data'

34. I want to pay taxes today but I do not have a PAN?
It takes about 15 days to get a new PAN allotted. However, PAN can be obtained in around 5 days if application is made through Internet and processing fee paid through credit card. It is advisable to initiate action for obtaining PAN will in time.

35. Who should be contacted for inquiries regarding PAN applications?
All such inquiries should be addressed to:
For UTIISL For NSDL
The Vice PresidentIT PAN Processing Centre,UTI Investor Services Ltd Plot No. 3, Sector - 11CBD_ Belapur Navi Mumbai-400 614 e-mail.- utiisl-gsd@mail.utiisl.co.in Tel No. 022-27561690 Fax No. 022-27561706 The Vice President Income Tax PAN Services Unit, NSDL4th Floor, Trade World, A WingKamala Mills Compound,S. B. Marg, Lower Parel,Mumbai-400 013 e-mail.- tininfo@nsdl.co.in Tel No. 022-2499 4650 Fax No. 022-2495 0664
Coupon number or Acknowledgement number, as the case may be, should be mentioned in all communications.

Tips on how to invest safely

After almost over four years of good times, the Indian economy is looking at a slowdown. Industrial production is already down and the stock market mayhem in the last two months is reflecting that the global scenario continues to be grim. In such a situation, investors find themselves in a situation where they are unable to decide where to invest.

Safe havens

Some part of your portfolio should always include safe instruments. However, for starters, it should be said that there is nothing that can be called 'safe' at all times, except maybe government-backed instruments.

For instance, investing in gold can be a considered safe when there is a crisis of confidence in the equity markets. At other times, commodities like silver or metals might also fall in this category.

With the rise in investment opportunities, the scope for the investor has also increased in the recent years. Traditional routes that provide assured returns is also a way to achieve safety. Instruments like bank fixed deposits and post office savings could be a primary source to achieve this objective.

The idea is to have some money in instruments that are less likely to be affected by the prevailing crisis all around. Remember that safe havens can be spread across different asset classes and they are dependent on the current market conditions.

Cover against recession

There are several sectors where the impact of an overall slowdown might be negligible. This is because of the fact that there will always be some demand for those goods and services. Hence, it is unlikely that there would a sharp change in the consumption pattern of these items.

Take for instance, companies involved in the making of food items. No matter what happens to the economy, these companies will continue to do okays. In many cases, people may switch from expensive options to cheaper ones but consumption per se will not be too badly impacted.

So such industries are likely to recession-proof. Another very good example of this is children's items where parents are unwilling to cut spending even when the times get tough. Several of the basic requirements will also witness strength in their demand and this can mean good times for listed companies who are into such areas.

It's important for one to choose properly from such options and invest in them, directly through stocks or mutual funds. Others like art and specific collections are also examples whose value may not get eroded in recessionary times because they are not related to the markets. This is one of the methods that can be used to ensure that your investment basket has an element of safety.

Growth areas

The other way in which one can deal with investments, especially those that are related to the equity side, is to move towards areas that are growing in spite of the situation.

If there is going to be a growth in that particular area then there is a good chance that the valuations and other parameters of such sectors will continue to remain strong.

Sectors like infrastructure financing or telecom related areas are good examples of sectors, which may not be too badly impacted, in this mayhem.

This does not guarantee that there will not be a fall in the value because when it comes to equities there is nothing that an investor can do to stop a fall along with the market as a whole. In case of equities, that are related to growth sectors, it is more likely that when there is a fall the recovery can also be quick if the growth continues.

There are exceptions to this situation especially when the valuations are already too high so that a fall is actually bringing them safer valuations.

However, targeting growth areas will also ensure that the individual is able to get good value for the investment where things improve. That is, having positions in stocks with strong fundamentals will ensure that there is wealth creation for the investors.

6th Pay Commission for govt staff

The Sixth Pay Commission on Monday submitted its report to the government presumably recommending a 40 per cent hike in salary for the central government employees. The commission, headed by Justice B N Srikrishna, submitted its report to Finance Minister P Chidambaram on Monday morning.

The recommendations of the commission, when accepted, would provide a bonanza to over 4.5 million central government employees. The commission was set up by government in 2006.

The government has decided to merge 50 per cent of the Dearness Allowance (DA) in the basic pay of its employees and the recommendation would have an impact of substantial increase in salary.

Although the finance minister had not provided for any specific allocation for the salary hike in the budget, he had stated that there was enough head-room.

Earlier, a secretary-level official of the central government said recent reports about the expected increase in salaries were a bit over the top.

"A senior secretary gets Rs 52,000 as monthly salary. I do not expect it to go up to more than Rs 60,000. Salaries of top officials will not be more than that of governors," the official said.

Earlier this year, the Union Cabinet decided to double the salary of the President to Rs 1 lakh (Rs 100,000) a month, even as the Vice-President's salary was raised from Rs 40,000 to Rs 85,000 and that of Governors' from Rs 36,000 to Rs 75,000 a month.

The hike, which is with retrospective effect from January 2006, was necessitated by the fact that members of Parliament were drawing Rs 68,000, more than the Vice-President, who is the Chairman of the Rajya Sabha.

Going by this order of precedent, the country's highest ranking bureaucrat -- the Cabinet Secretary -- cannot be paid more than Rs 75,000.

The financial impact of the Sixth Pay Commission award has been estimated to be within 0.4 per cent of Gross Domestic Product (GDP), similar to the Fifth Pay Commission award of 1996. Given that the Budget has projected GDP at Rs 5,303,770 crore (Rs 53,037.70 billion) in 2008-09, the impact of the award may well be Rs 21,215 crore (Rs 212.15 billion).

Add Gold in your portfolio

Now that the dizzying Sensex is not blinding us anymore, we can look at introducing a third investment vehicle that reduces risk and provides stability to our portfolio: gold!.

Should I buy gold now?

Yes. For three reasons.

Get diversification advantage. Anytime is a good time to buy gold if the aim is an efficient portfolio.

A portfolio is efficient if it contains assets (like stocks, bonds, real estate and gold) that do not move up or down together. The aim of adding products to a portfolio is to bring the overall risk down by diversifying across assets.

The addition of gold, for example, to a portfolio will help move it to a higher level of portfolio return for the same risk or to the same return for a lower risk. Gold in a portfolio adds to liquidity, especially in distressed financial systems, acts as a hedge against inflation and is a solid store of long-term value.

These are enough compulsions for every portfolio to own gold, irrespective of timing.

Exploit 'recency' bias. Two, timing. But why are we saying this now? Behavioural finance has identified what it calls a 'recency' bias, or the propensity of people to invest in a thing that has been in the news.

Since the rush of gold-related news in the last month could not have escaped your attention, here is a good time to catch this bias and introduce the metal into your portfolio.

Why Oil is at its all time High

Oil at a record high
A global energy crisis looms large, with crude oil prices hovering over the $111.80-per-barrel mark, which it hit on March 17. It later fell to $105.11. With international crude oil prices shooting through the roof, the basket of crude oil that Indian refiners buy too recorded a record high of $101.2 per barrel.

On the backdrop of a global meltdown, the rise of oil prices is a cause for concern. The spiraling oil prices will derail a booming economy if not checked.

So why are oil prices soaring like crazy? Will there be some respite in the near future? The answers are disturbing. . .

The fall in the dollar rates is just one of the factors that has led to this astronomical rise in oil prices. A weaker American currency tends to increase the demand for dollar-denominated oil as it becomes cheaper for buyers using stronger currencies.

Oil prices are also heading higher because investors are seeking a safe investment for their cash amid fears of rising inflation and a US recession.

Property prices may fall by 25% by year end

Experts say property prices could fall by 20-25 per cent in the next 6-8 months if the volatility in the stock market continues.

The bearish trend on Dalal Street has started affecting real estate prices in metros like Mumbai and Delhi. “Property prices had reached unrealistic levels, and the market boom was a major driver. I expect prices to fall by 25 per cent due to the crash.

Basis. In 1994, when the Sensex touched a high of 4,634.85 points, real estate prices shot up. But three years later, the market entered a bearish phase, and the realty sector took a hit. “When the Sensex was down in 1997, realty prices dropped. “Stock and realty markets are interlinked.”

Realty prices started rising as the Sensex began rising in 2003. Prices have since gone up almost 300%, .

There are other indicators too. Stocks of realty companies have fallen 25-35% in the past month, as the Sensex shed 18%.

The share price of realty major DLF has dropped to Rs 602 from Rs 1,225 two months ago. Companies like Omaxe, Puravankara and Kolte Patil Developers, who recently entered the market through IPOs, are trading below offer prices.

Some experts say the market meltdown is only one of many factors in determining realty prices. The 15-20% correction that is happening is more because of lack of demand and oversupply.

As stocks plummet, speculators who drive real estate rates are likely to stop investing in property. “Lesser demand will trigger a correction. But some are putting up a brave front that buyers are not stock market players. The impact, if any, may be felt after three months.”