BasuNivesh

Personal Finance Blog

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  • where can i get the government property rates… i am searching for plots / houses at Palace Guttahalli (near malleswaram) bangalore

  • Hi sir iam nag from Hyderabad .actually iam not supposed to ask this question to you.but i need your guidance from you sir.Dont be think other wise actually the prob is iam a blogger i have site recently started 3 months ago i applied to adsense but rejected by them.i have seen you conversastion in techulator.what instructions have to follow again apply adsense before now pls refer my site waiting for your reply soon.

  • Hi,
    I have opened a commodity account. I have given them my PAN card details. But in which account they will deposit profit amount, my father is named as primary holder then whose income will be taxable in this process?? Me or my father? Please let me know.
    How would I rate my commodity broker? I mean the stability of the company and my opportunities etc etc parameter.

    • Santa-The source of investment will come into the picture. If the source if from your income then it will be taxable to you. They will deposit in the primary account of the bank (details of which you provided). There is no specific guidelines set to judge the quality of broker. So it is difficult to say. But from the history of broker and the opinion of the existing clients you may arrive at decision.

  • Dear Sir,

    If we are in position in one property from past 25 years on the basis of GPA. But now only based on the Position can i request court to make it in our name permanently? and what is Holder katha from BBMP?

    Thanks
    Vishwanath

    • Vishwanath-Please raise your doubt on the post “Difference between A Khata and B Khata-Bangalore Property” so that our expert can answer you there itself.

      • Thanks for the reply Basu but there are 2 questions in my request. Can you answer for 1st question. I will raise the 2nd question under different section.

        Thanks in Advance.

  • Plz help me regarding this.

    1. How would my commodity, Equity share market earning effect my IT? Is that per slab or any else…..Pls let me know how it would be calculated if loss is there. My friend told me he would be eager to invest in my account, where my PAN no is given, and he would carry his profit/loss and withdraw as per that. Is that earning would burden my IT? Should I allow him to do so?

    • Santu-It is a lengthy chapter. So will try to address it early by posting an article. But as of now you remember that, even though your friend is trading from your account then whatever the profit or loss he makes will definitely affect your taxation. So better to ask him to open his account and trade. What is stopping him to open his own account?

  • Dear Basavaraj,

    First of all thanks you very much for your suggestions and answers for the investment related queries.

    I had gone through couple of your posts and i thought you are the right person to answer few of my questions.

    I have a LIC jeevan anand policy since 2006. And i am looking for some other scheme of investment. Initially i was thinking to invest in one more Jeevan anand policy for my family. But with my experience i can also agree with you that this is a very low yielding scheme in a long term. And only after seeing your post on how much agents gain from our investment, i don’t want to go for this plan any more.

    Alternative to LIC policies, i heard investments in Mutual funds is of at higher gain, but i am not much aware of Mutual funds and details about that.

    So would you mind to suggest me few of good schemes for long term investments where i can invest up to 50K annually and have marginal yieldings? This would be a very good help for me.

    Thank you!

    • Naresh-Thanks for your kind words 🙂 First do your life is fully covered by pure insurance product like term insurance? If no then first buy it. Second thing, do have an emergency fund of at least 6 months of your household expense? If not then produce it. After that we can think of investing. Now you said that you are ready to invest for long term, so I mean more than 10 years. So your monthly contribution will be around Rs.4,000. In that I suggest you to invest Rs.1, 000 in PPF (it is a 15 year product), Rs.1,000 in Franklin India Blue-chip Fund (G), Rs.1,000 in UTI Opportunities Fund (G). Utilize Rs.1,000 for term insurance, health insurance, critical insurance and accident insurance premium. I am not sure about the insurance premiums as I dont knwo your age. Hence do your research and plan accordingly.

  • I read your article on LIC JEEVAN ANAND policy. Please can you clarify my doubt about the policy. I will be grateful to you.

    I have a policy for 16 years and the sum assured is 8,00,000. My premium is 28,920 Rs. I understand that i will get 800,000 rs plus bonuses after maturity of the policy i.e. after completion of 16 years. and my life will be insured till i reach 70 years.

    Now my question to you is god forbid i am alive after 70 years also then will LIC pay me some thing or no.
    second question is after completion of 16 years i receive 8,00,000 rs plus bonuses and i do not wish to take any benefit from LIC, am i entitled for extra amount. Please guide me.
    [email protected]
    Regards
    Masrat Khan

    • Masrat-Once the policy matures (in your case after 16 years) then you receive SA+Bonus. If you still survive after maturity then upto your 70 years of age Rs.5,00,000 will be paid in case of normal death and Rs.10,00,000 in case of accidental death. Now if you survive after 70 years of age too then Rs.5,00,000 only after your death (whether normal or accidental).
      My answer to second question is-Not possible, you need to take the maturity amount.

  • Hello Sir,
    I have purchased a built house 2 years back. The original owner had misplaced the betterment paid charges receipt. But he had a suvarna Khata and on transferring the same to my name I now have a Suvarna Khata.
    Now for getting the Kaveri water Connections, officials are telling that If I do not have the Betterment tax paid receipt, then I should pay Rs16,000/-
    Is having suvarna Khata sufficient to not to pay Rs 16,000/-
    Regards
    Chitta Ranjan

    • Chitta Ranjan-Please raise this issue by commenting on the post “Difference between A Khata and B Khata-Bangalore Property” so that it will be helpful for our expert in replying you.

  • Hi,
    Today got a call from Reliance capital that they are giving Loan against Life insurance. They will give 5L loan against 50k Life insurance. First I need to give 50K then they will start the insurance and after 30 days I will receive the Loan amount. Plan name Reliance guaranteed money back. Do you have any idea regarding this? This plan is something Out-Of-The-World plan.
    Please let me know if this is true or fake.

    • Santu-Superb plan 🙂 Please ask for the details and if possible share the same with me either by mail or posting the same on this platform. Let us know how they are playing with all. It is just one more sales pitch what they are playing with you. So be careful. The plan you mentioned is normal traditional money back plan. Then on what base they are giving you the loan immediately after the start of the policy? Even God can’t answer then leave it IRDA 🙂

  • Hi,
    Whatever investment I do I need good return back and want to invest for long period. So from that thinking plz let me know your suggestions….

    • Santu-Go for MIPs if you’re looking for a short period like less than 5 years or looking for some stable income. But in my view better to choose Dynamic Funds than these MIPs. Reason is, these MIPs still has some equity exposure which is not with Dynamic Bond Funds. Beauty of Dynamic funds is they adjust themselves based on the interest rate cycle. So you will get better return in long when interest starts to increase. Regarding indexation on income tax part. It is a big topic which I can’t explain in detail by commenting. Hence request you to do some search, you will find plenty of information on the same.

  • Thanx for your suggestions.
    Actually few days back I was reading some article on this and it says putting investment in RD/NSC/FD its better to put in such MIPs in case if investor invests for 3+ yrs.
    In other cases IT also applicable as per slab but here some indexing or non indexing matters, which I have no knowledge and I have to search for that.
    Here Risk factor also low and it says the Maturity percentage will be between 7-12% where as in other debt cases I am getting 8.5-9% fixed.
    Please let me know your suggestions regarding this.

  • Hi,
    I would like to invest in MIPs. Like reliance/HDFC/birla sun life. Please let me know which one would be better for SIP investment for 5+ years duration

    • Santu-May I know the reason for choosing MIPs? Anyhow my suggestion will be Reliance MIP or HDFC Multiple Yield.

  • sir ,
    in previous some months is their any change in that who should use which itr form for income tax returns,please tell about this because yesterday in a news paper i read that for agriculture income taxpayer should use ITR2 while previous three times i used ITR1 and include agriculture income in other incomes. So please tell about this

  • Plan Details

    Age: 24 Policy Amount: Rs.6,00,000/-

    Premium Paying Term: 25 Years Yearly Premium: Rs.25,765/-
    Year Age Maximum Risk Cover Yearly Premium
    2013 24 24,30,000 25,765
    2014 25 24,60,000 25,765
    2015 26 24,90,000 25,765
    2016 27 25,20,000 25,765
    2017 28 25,50,000 25,765
    2018 29 25,80,000 25,765
    2019 30 26,10,000 25,765
    2020 31 26,40,000 25,765
    2021 32 26,70,000 25,765
    2022 33 27,00,000 25,765
    2023 34 27,30,000 25,765
    2024 35 27,60,000 25,765
    2025 36 27,90,000 25,765
    2026 37 28,20,000 25,765
    2027 38 28,50,000 25,765
    2028 39 28,80,000 25,765
    2029 40 29,10,000 25,765
    2030 41 29,40,000 25,765
    2031 42 29,70,000 25,765
    2032 43 30,00,000 25,765
    2033 44 30,30,000 25,765
    2034 45 30,60,000 25,765
    2035 46 30,90,000 25,765
    2036 47 31,20,000 25,765
    2037 48 31,50,000 25,765
    2038 49 31,80,000 Maturity – 18,00,000

    Summary of Proposed Insurance

    Maximum Risk Cover enjoyed Rs.31,80,000
    Total premium paid Rs. 6,44,125
    Less 20% Income Tax Rebate Rs. 1,28,825
    Net Premium Paid Rs. 5,15,300
    Proceeds from LIC by way of Maturity Benefits Rs.18,00,000
    Net Amount in hand as on 2038 Rs.18,00,000
    is it true of jeevan mitra

    • TR-Please send me the details about your need to my mail by sharing the above details and considering my replies to my mail id. I will guide you what to do.

  • i want to invest in lic policy..my age 25..in jeevan anadh lic policy how much possibly i have to invest for many years for better returns

    • TR-It is simply a plain question from your end. Hence need specific data like what will be your waiting period, how much you want at that time and what type of risk taker you are. Based on these conditions I can refer you the product but surely not Jeevan Anand. Hence if you interested then share the information I asked for.

  • Hi,
    I like an house in rammurthy nagar, bangalore. But the land is not dc converted, bbmp b katha. I know that dc converted property is not used to construct an house but builder and surrounding people told that all the houses in that area are like that. Please suggest me consequences would I face in future if I buy the house.
    Thanks
    Krishna

  • Hi,
    I have started LIC endowment plan 2010-11 FY and paid 4 premiums till date (including 2013-14FY). BUt in LIC site it shows only 57600 bonus (SA 6L). Which as per your table only for first two years where is the third yr bonus? Is that not yet calculated and published in LIC site?

    I have another doubt. You have adviced Mr Rao that to go to LIC office to get the money….Are you reffering him to surrender the policy? If any else pls let me know what is that. Thank you

    • Santu-Yes they have not calculated for third year. Yes I am advising him to surrender the policy.

  • Hello Sir,
    This is K SAMBA SIVA RAO from Chennnai.
    I am paying New Jeevan Shree Policy for the past 7 years (Tenure 16 Years, Maturity 25 years).
    At present the Accrued bonus is around 1.25 Lacs.
    My doubt is can i withdraw that amount?
    If so, what is the procedure?

    • K.Samba Siva Rao-Better you discontinue this policy and immediately cover your life risk by taking term plans of your suitable insurer. Nothing to do, just visit your servicing branch with original bond and your bank details (better you go with one cheque leaf). Fill the form and they will process it within day or two and money will get credited to your bank account directly. But never indulge any agent especially your agent who sold this policy. Because they may so many things to continue the same 🙂

  • Hi,
    I wanted to open a RD account and then the bank official said there is no Tax should be paid after maturity whatever is the maturity amount is. I have verified this with many banks and all said the same.

    Is it true that, whatever may be the interest earned at the maturity, full amount would be tax exempted? Please let me know.

    • Santu-It is totally false and mis-guiding. Their is no TDS on this but whatever the accrued interest is taxable income for you.

    • Supriya De-Their is no interest part on this, instead LIC fixed guaranteed addition of Rs.50 and Rs.55 as GA for 5 and 10 years of term (compounding annually).

  • Hi Sir,

    I am planning to buy plot near Devanahalli ( from North East Propoerties). What documents should I ask from them to make sure that I am buying clean piece of land ?

    Regards,
    Hemant
    9980533331

    • Santu-Your father can give it to your HUF as gift. But need to mention that gift is made to your HUF but not to you as individual. Once it is received then whatever the accrued income from this amount will be taxable under you i.e HUF.

  • Need Investment tips :
    I need some helpful article on creating HUF and HUF fund creation.

    1. My dad wants to put 5L in my HUF. He does not have any HUF. Is that possible? What would happen to the money which would get generated from this 5L? Whose liability this interest money would be?

    • Santu-Will soon post on the quarries you raised. Thanks for suggesting it.

  • Namaskara Basavaraj,

    I am planning to buy plot(20*50) thats been developed by a private developer in Hosakerehalli.

    Advocate after verifying property documents says that entire layout is a DC converted property and single “A Khata” is issued by BBMP to entire layout, it may not be possible to create split “A Khata” for individual sites.

    From a legal stand point and loan approval from bank standpoint, let me know if split “A Khata” can be issed for above mentioned layout and Can I go ahead with this proposal?

    Regards,
    Madhu
    9632900228

    • Madhusudan-What your lawyer told is correct. Because layout approval is for the whole property but not the piece of property you are buying. So in my view you may face problem. Still you have doubt then you can contact our expert lawyer on this matter. If interested then I will provide his contact number.

    • Sunil-I plainly can’t recommend you the product on this platform. If you need expert advice then better to contact medimanage. I hope they really help you out based on your need.

  • Basu I want to Invest in PPF My InCome is Rs30ooo pm. But myBank manager told me2 Invest in SBI lifeI want to Invest Rs5000 Pm. tell me how much I got after 15 yrs.MyselfAZAD n my email Id is [email protected]
    mail.com

    • Azad-First of all think yourself whether PPF or SBI’s product will actually fulfill your financial goal or not. Now in PPF if I consider as your monthly contribution is before 5th of every month and you maintain the same style throughout the period then your maturity amount will be Rs.10,72,061.

    • Basu I wnt 2 say that I invest rs 24000 p.a. approx. For fifteen years how much I got in ppf n how much in sbi life n also tell me best term insurance plan bcoz as u say insurance n investme t both r sprate things insurance for Rs30 lacs

      • A
        zad-I am currently out of city. Hence unable to respond to your queries. But once I return I will reply to you doubt.

          • Azad-Sorry for delayed reply. Suppose if I consider your Rs.24,000 yearly contribution towards PPF in the month of April but before 5th then maturity will be Rs.7,47,457. Also suppose your yearly contribution is after 5th of April every year then maturity amount will be Rs.7,42,525 (I considered current PPF rate for calculation).

            Now choosing best term insurance is left with you based on your comfort with insurance company and premium you can afford. For your information LIC’s term plans are costlier than others and usually opt for online term plan as premium will be lower than off line plans. You may choose according to your comfort from ICICI, HDFC, Kotak or Aviva.

          • Sir is dat mean lic jeewan saral is better than ppf becoz my frnd told me that invest 24000 rs. P.a. in it and after 20 yrs u will got rs.16 lacs surely and also got life isurance of rs.5 lacs is it true or not tell me. And the amount which ur given 2 me rs.747500 somthing is wat I got aftr invsting Rs.24 t
            housand p.a. for a period of 15 years consistntly .

            • Azad-Do you know how much return your friend talking about? It is 11.32%. Even it is not practical to expect such return from equity market too. So he is definitely mis-guiding you on this. So from all views PPF looks better than this plan. So think and decide seriously.

  • sir I am now 49 years old. I want to invest one lakh rupee in LIC. But i want to get pension about 2000 per month immediately on deposit. also will I get any risk cover. Please tell me is there any LIC plans currently available to meet this criteria if so please inform me sir. thanks

    • Kannan-Investing Rs.1,00,000 and return of Rs.2,000 per month!!!! Do you know how much return you are expecting? It is highly impossible with such low investment and high expectation. You can try LIC’s New Jeevan Akshay VI if you want.

  • Dear Basu,
    I request your expertise opinion on following questions.

    1 – What types of Mutual Fund are good for long term [ 10- 15 years ] investment ?
    2 – What is minimum return we can expect from such fund ?
    3 – If returns are not guaranteed then how to invest in Mutual Fund with a financial goal for 10-15 years, what is contigency plan one should adopt.
    4 – Apart from Equity and Hybrid Fund, can we consider sector fund for long term investment 10-15 years, how much return can be expected ?
    5 – Returns earned on Balanced fund are taxable ?

    • Sunil-My answers

      1) Select the oldest fund which have given consistent return rather than new funds or new AMCs.
      2) It depends on your waiting period, fund you chosen and the constant monitoring. Mere investing and forgetting may not work well in long run too.
      3) Returns are not guaranteed but will give you better returns than other asset class if your waiting period is 10-15 years. Contingency plan is to come out of equity investment 1-2 years before goal approaches.
      4) In my view sectoral funds are risky than diversified funds. If that particular sector not perform well then you may be in trouble. You may think about sectoral when your basic investment needs are fulfilled.
      5) If the balanced fund is equity oriented then it is treated as equity fund only if not then it is like debt fund and taxation will be as per debt fund.

        • Hello Basu,

          Why our expert lawyer Mr. Srinivasa is not answering our queries. We need his continuous expert advice.

          Regards
          sunil

          • Sunil-Seems me he is bit busy. Usually he used to reply on weekly base (on Sundays). Me too hoping that he will be active 🙂 I can’t force him considering his age factor.

  • Dear Sir,

    I am looking for good children plans & i have decided to go for LIC children plans.

    Please help me to select a plan which can cover my daughter’s education and marriage.

    Thanks & Regards,
    Bhanuprakash

  • Dear BasuNivesh,
    I have 2 question related to buying a site.

    1- if the layout is already approved by BMRDA do we need to still get individual A khata to build the house.

    2 – If the land is in yellow zone, DC convereted or DC approved, and as per builder the land is A Khata, we need to pay betterment charges to BBMP, it it true ?. Currently this place doesn not come under BBMP limits.

  • I am planning ro invest around 60K from next financial year from from a couple of investments on lic which I am doing right now, Please tell me if I invest the same on a PPF what should be the sum assured after 15 years, or can you suggest me a better plan that this?

    Thanks in advance,
    Uddalak

    • sorry for the typo, in the first line i meant” 60K from next financial year and currently I am investing on couple o lics…………………………………..

    • Uddalak-Think insurance as the product of protecting your life in case of any untoward incident. So better to take term plan and rest in all other asset classes based on your risk appetite and financial goals. For your information in PPF their will not be any word called Sum Assured. Return on PPF will be definitely be more than the normal traditional insurance plans. But parking all your investable surplus in product will not fulfill your goals. Hope you endorse my views.

      • Got ur point………….Thanks a lot………so based on your last comments can you give me some ideas what/which term plan should I go for?

        Thanks
        Uddalak

        • Uddalak-Their are plenty of online term plans. Based on your comfort with insurer chose anyone. Term must be till your 6o to 65 years of age and Sum Assured should be 10-12 times of your yearly income. Increase for each 5 years based on your income and liability.

  • m a surveyor n i need to compare public n private sector players’ profits n all other data. m not able to find all this from any branch office. thats why i found u as my mentor who can help me. in any way can u be helpful?

  • Hello!! ur suggestions seem very knowledgeable.it would very kind of u if u plz mail at my below mentioned address about last 5 yrs profits,no of policyholders, current plans of LIC.
    [email protected]
    waiting 4 reply…

    • Bhawna-I didn’t get your exact need? Last 5 yrs profits?? No. of Policyholders?? Current Plans of LIC?? Better to contact nearest LIC Branch 🙂

    • Madhav-I can’t suggest you any investment like this. I need your age, current income and expenses, your current investments, your risk appetite and your future financial goals. Hence share these details to me through mail or calling me. I will definitely help you.

  • hello Basu, can u please suggest me few websites where i can learn more about financial planning, investing in MF etc. I regularly follow your blogs. Thanks for educating me. 🙂

    • Sunil-Refer Value Research for your mutual fund requirements. Regarding personal finance refer Subramoney.

      • Dear Basu,
        Please send me your office address, also details regarding your fees for consulting to my mail id.

        • Sunil-I work from home. So if you are interested to meet regarding financial planning then we can meet up at any time convenient to both of us. Fees are fixed once I look at customer networth. Hence when we meet and start the discussion at that time I will inform you the fees I charge.

            • Sinil-SIP stands for Systematic Investment Plan. This is the best tool to invest in equity (either direct or through mutual funds), which not only makes you ease from saving one time but also a best way to reducing your risk due to cost averaging of this type of investment.

  • i wanted to buy a piece of land which falls under the Farm house converted category, this means i can only build a farm house on this property and its subject to a seperate set of guidelines for construction, i wanted to know more about this category of land and is it safe to invest in this scheme? i dont even know if its a khata A or B land and will i get a loan for purchasing the same either. can u please help?

    • Vikram-I suggest you to post the same quarry in the article named “Difference between A Khata and B Khata-Bangalore property” of my blog, so that our expert can view it and reply.

  • Hi, my parents had bought a property in Bangalore in 1982 and after that they never paid property Tax, neither they had visited the site.
    Now wht do u suggest?

    • Birendra-This case is the proximity of careless. In my view first visit the site personally and try to get the latest documents on the site. Then go for further steps like paying all dues.

  • Dear Sir,

    Earlier the taxes have been paid to Bangalore City Corporation. Since we did not have PID number BBMP collected tax on Survey No. Now BBMP officials are conveying that only B Khata can be issued to us. The property is located in Bellary Road Cross, Ganganagar. Please help.

    • Amjad-Beet to post this doubt in the article “Difference between A Khata and B Khata-Bangalore Property”. Our expert will guide you on this matter.

  • Hello sir,
    I live in Bangalore, i’m planning to buy an 2 Bhk apartment here. In one of the apartments I saw, they have got approval only for contructing 2 Bhk, but they have built 3 Bhk also.. My query is, If i purchase it, will it create any problems in the future or in getting loans? Or is it better to avoid this? Please clarify?

    • Sindhu-Better you contact our legal expert Shri Srinivas related to the doubt you raised. You drop mail to me, I will send the contact details of Mr.Srinivas.

      • Can you share good legal expert on property. I am looking for a residential land in Bangalore.

        • Ravi-You can consult our expert lawyer who is commenting on this platform related to Bangalore property. His name is Mr.Srinivas and his contact number is 9886047740.

  • Dear Basu Nivesh,

    I was investing in ULIP 64 with UTI and same got matured in 1994 .I am still holding the same intact. Is it worth holding the same intact or invest the same in certain bond funds or liquid funds.

    Unfortunately thing is UTI never send any yearly statements and no update is done.

    We get only bonus units and no dividends are paid..

    I am now retired person and needs money on regular basis for my day to day expenses.

    Thanks in advance. .

    • Dear Sir-Regarding your UTI 64, please provide me few more information like what type fund it is and when you started investing, then I may be in a better condition to guide you. Request you to switch to Postal Monthly Scheme, where you will get monthly definite income which may be helpful for your day to day expenses. As you told your expenses are depend on this earning then instead of bond funds or liquid funds where your principal may be safer but no guarantee of desired returns. Hence better to choose MIS. If you have still doubt then feel free to ask me. I will be out of city for more than a week. Hence will reply to your quarries once I am back to Bangalore.

      • Dear Basuji,

        I have to discuss in detail with you for my UTI ULIP as well as my PF case. Is it possible for you to give me contact numbers

        • Manher-It is available on top of the same page “Contact Us”. Please take it.

  • Hello Sir,

    I would like to discuss you, abt investments

    Will u contact me. on +919623550550 (Pune-Maharashatra)

    • >