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If you have a <keyword id="19930665" type="General" weightage="100" keywordseo="PPF" source="keywords">PPF</keyword> account, you might want to pay attention to this! Starting October 1st, 2024, your PPF account is set to undergo massive changes, thanks to the new regulations, which were notified by the government in August this year, taking effect. If you don't know about them, here's a ready reckoner for you to get up to speed. 1. If you have opened a PPF account in your child's name i.e. a minor (who's under 18 years of age), their account would earn interest equivalent to a POSA (<keyword id="20076819" type="General" weightage="20" keywordseo="post-office-savings-account" source="keywords">Post Office Savings Account</keyword>), which currently stands at 4% p.a. Once your child turns 18 and attains majority, the standard PPF <keyword id="20071327" type="General" weightage="20" keywordseo="interest-rate" source="keywords">interest rate</keyword>, which is presently at 7.1%, will kick in. Remember that in a post office savings account, no interest is credited for a particular month, if the balance in this account falls below Rs 500, between the tenth and last day of the month. The maturity period for all such accounts will be calculated from the day the child turns 18 i.e. attains majority. Normally, the general maturity period of a PPF account is 15 years, with the possibility of extending it multiple times, but only in blocks of 5 years. 2. Have multiple PPF accounts? Well, you will not be earning any interest on any of your other PPF accounts, except for your primary one. As it is, PPF rules mandate that an individual can only have 1 PPF account. Inadvertently, many people end up opening 2 PPF accounts, sometimes with different banks, or one with a bank and post office each. Also, note that if you have opened a second PPF account on or after December 12, 2019, you are not eligible for merger of both your PPF accounts. In this case, your second account would be closed, without bearing you any interest. But if you have opened a second PPF account before this date, you can request for merger. However, in case you have not requested for such a merger, only your primary PPF account will continue earning interest at the rate of 7.1% p.a. While you will be able to transfer and send funds across from your second account, interest will only accrue on your primary PPF account, so better regularize your PPF account in the next 4 days with the post office or agency bank, lest you lose out on interest income. In case the balance in your primary PPF account is below the maximum annual investment limit of Rs 1,50,000, any balances you have in your second account will be added to the same, in order to calculate interest. And thereafter, any remaining balances in your second PPF account will be rendered ineligible for further interest. Lets understand this with an example. Suppose you hold 2 PPF accounts-A and B. The balance in account A is Rs 1,00,000, and that of B is Rs 70,000. In this case, you will only earn interest on Rs 50,000 from account B, while the remaining Rs 20,000 will not be considered while calculating interest. If the primary account stays below the applicable investment limit each year, the balance in the second account will be added to it. The primary account will continue to earn the prevailing scheme rate of interest after the merger. The second account's i.e. B excess balance will be returned without interest. 3. If you are an NRI who currently holds an active PPF account, where your residency status in Form H, which is needed to extend the tenure of your PPF account by 5 years was not asked for, your account will continue to earn interest at the same rate as a POSA (4%). Starting October 1st, such accounts will accrue no interest at all. Notably, while NRIs cannot open new PPF accounts, they can continue investing in their existing PPF account, which they had opened whilst they were still Indian resident. But once their account matures i.e. 15 years are over, they will not be able to extend their account's tenure.

Attention! Here's what's changing with your PPF accounts starting 1st October, 2024

<ul><li>STT increased on futures and options trading </li><li>Changes in <keyword id="22258595" type="General" weightage="20" keywordseo="TDS-rates" source="keywords">TDS rates</keyword> (from 5% to 2%) on payments for life insurance policy, brokerage </li><li>Buybacks to be treated as dividends for taxation purposes</li><li>Small savings account rates left unchanged for Oct-Dec 2024</li></ul>Starting October 1st, a lot is set to change with your money. From <keyword id="20852321" type="General" weightage="100" keywordseo="FO-trading" source="keywords">F&amp;O trading</keyword> (futures and options) and buybacks getting more expensive in the hands of the individual, to changes in TDS slabs for payments concerning life insurance, brokerage, and more, here's a ready reckoner for all that you need to know: 1. STT upped for F&amp;O (Futures and Options) trading This budget, in a bid to discourage retail investors from burning their hands in the highly risky F&amp;O segment, the government had proposed raising the STT (securities transaction tax) for both futures and options. Starting today, you will have to pay an STT of 0.1% on premium earned from option sales, as opposed to 0.0625% previously. As for futures, the STT is set to rise to 0.02% of trade price, up from its previous mark of 0.0125%. Notably, STT is levied every time an individual purchases or sells a security, which significantly increases its incidence and coverage. For instance, if the trading price of the futures you're selling today is Rs 1,000, you'd have to pay Rs 0.2 as STT today. Till September 30th, the STT applicable would be Rs 0.12. Similarly, for options, if the settlement price of your options contract is Rs 1,000, your STT payable today would be Re 1, which earlier stood at Rs 0.625 While this may sound super inconvenient for frequent or intraday traders, a recent SEBI study has highlighted that a staggering 93% individual traders have incurred just losses while trading in the F&amp;O segment between FY22 and FY24, with the total losses exceeding Rs 1.8 lakh crore during this period. Only a tiny 1% traders managed to rake in profits above Rs 1,00,000. Perhaps SEBI is thinking along the lines of prevention being better than cure? 2. Changes in Debit card rules for ICICI bank ICICI debit card users, who also happen to be frequent flyers, listen up! Starting today, you will be able to access the complimentary airport lounge service twice, but only if you have spent Rs 10,000 or more via your card in the previous quarter. So, suppose you've spent just Rs 8,000 between July-September 2024 via your ICICI debit card. Since this falls below the Rs 10,000-threshold, you wont be able to access complimentary airport lounge service two times between October-December 2024. 3. Changes in rules for PPF, small savings account The interest rates on various small savings schemes were left unchanged by the Finance Ministry for the upcoming quarter i.e. October-December 2024. For this quarter, Public Provident Funds (PPF) will earn you 7.1% interest p.a., while Sukanya Samriddhi Yojana (SSY) and Senior Citizens Savings Scheme (SCSS) will offer interest at the rate of 8.2% p.a. <div type="Article" hostid="261" msid="113692667" title="Attention! Here's what's changing with your PPF accounts starting 1st October, 2024" mstype="2" mssubtype="0"></div> Also, these changes in PPF accounts will kick in from today: <ul><li>Have a PPF account in your child's name i.e. a minor? This account would earn the same interest as a POSA (Post Office Savings Account) i.e. at 4% p.a. currently. Once your child turns 18, the prevailing PPF interest rate, which is presently at 7.1%, will be levied. </li><li>No more interest earning via multiple PPF accounts! Starting today, only your primary PPF account will be eligible for interest. </li><li>Are you an NRI who currently holds an active PPF account, and you have not disclosed your residency status in Form H (used to extend the tenure of your PPF account by blocks of 5 years)? Starting today, such accounts will earn zero interest. </li></ul>4. Buyback set to get more expensive Buybacks happen when a company decides to buy back its own shares from its existing shareholders. What's in for the shareholders, you ask? The buyback price is usually higher than what is offered by the markets. You are eligible to participate in a company's buyback if you hold its shares on or before the record date that's set by the company. Starting today, buybacks will be treated just like dividends. This means starting today, the burden of tax payable on buybacks will fall on the shareholders selling the shares, and not the company. Buybacks will be taxed as per the individual's personal income tax bracket. 5. Revision of TDS rates Starting today, the TDS (tax deducted at source) on various payments you make for life insurance, lottery tickets and more is also set to change. Here's how TDS rates will look, starting today: <table class="redcator-table-advance"><tbody><tr><td>Category </td><td>Previous TDS rate</td><td>New TDS rate (Effective October 1st, 2024)</td></tr><tr><td>Payment made towards life insurance policies</td><td>5%</td><td>2%</td></tr><tr><td>Commission earned on sale of lottery tickets </td><td>5%</td><td>2%</td></tr><tr><td>Payment of commission/ brokerage </td><td>5%</td><td>2%</td></tr><tr><td>Payment of rent by certain individuals/HUF </td><td>5%</td><td>2%</td></tr><tr><td>Payment made by e-commerce operators/platforms to e-commerce participants/sellers </td><td>1%</td><td>0.1%</td></tr></tbody><tbody></tbody><tbody></tbody></table>

Attention! Here's what's changing with your PPF, F&O trading, and buybacks, starting today!

Coming as yet another welcome initiative from the central government in the line of social security schemes, <keyword id="2713906" type="PERSON" weightage="20" keywordseo="Sukanya-Samriddhi-Account">Sukanya Samriddhi Account</keyword> is a part of “Beti Bachao – Beti Padhao” policy of the government. Even though the government has been taking many initiatives, the sex ratio in India has become a grave concern. Coming up to remedy the situation, the main objective of the Sukanya Samriddhi Scheme is to cure the gender imbalance and provide a conducive environment for the education of girl children. What is Sukanya Samriddhi Scheme? Sukanya Samriddhi Scheme comes through a bank account opened in the name of a girl child. This is a savings scheme that can secure the future of a girl child. Benefits of Sukanya Samriddhi Account Savings account with the highest interest rate This savings account provides the highest interest rate among the various savings account options. The rate of interest of this account will be linked with the market. The government of India will declare the interest rates on the deposits in this scheme for every year. The interest will be compounded every year meaning it will be credited to the account on a yearly basis. Saves on taxes For the sake of encouraging more people to open Sukanya Samriddhi Accounts, the government has exempted the contributions to this account under the 80C section of Income Tax Act, 1961. Lock-in-period The account will mature when the girl attains 21 years of age or gets married, whichever is earlier. If marriage is arranged, the girl must have attained the age of 18. The account cannot be operated after the girl gets married. In case the family wants funds for supporting the higher education of the child, one withdrawal is permitted when the girl attains 18 years of age. Only 50% of the balance accrued can be withdrawn in case of premature withdrawal. Payments directly given to the girl child Once the account matures, the balance in the account along with the interest accrued will be paid out only to the girl child concerned (account holder). In this way, we can say that this scheme aims at making girls financially independent. Interest paid even after the maturity of the account In most financial schemes, the interest will be paid only till the deposit or investment matures. However, in case of Sukanya Samriddhi Account, the interest will continue to be paid until the account is closed finally. Flexibility The account can be opened with Rs 1,000 minimum deposit. Deposits can be made thereafter in multiples of Rs 100 subject to the maximum limit of Rs 1.5 lakhs in a given financial year. In order to keep the account live, a minimum of Rs 1,000 must be deposited in every financial year. In case of a household having two girl children, the cumulative amount deposited in two Sukanya Samriddhi Account cannot exceed 1.5 lakhs in a financial year. Once the girl attains the age of 10, she can choose to operate the account on her own. If the account is resulting in some hardships to the account holder, it can be closed. The account can be transferred to any part of the country.

This government scheme aims to right gender imbalance

Both the Public Provident Fund (PPF) scheme and the <keyword id="2757237" type="PERSON" weightage="20" keywordseo="Sukanya-Samriddhi-Yojana">Sukanya Samriddhi Yojana</keyword> scheme are two investment options backed by the Government of India. Hence both these plans assure safety and security of the invested amount. Also, Section 80 C of the Income Tax Act of 1961 allows tax exemptions for the contributions made on them. Here we compare between these two investment options to know how to choose between them. Nature of these schemes The main objective of the <keyword id="248266" type="PERSON" weightage="20" keywordseo="Sukanya">Sukanya</keyword> Samriddhi Yojana investment is to secure a girl child’s future. PPF can be understood as a small savings scheme that can give good returns in the long term. Eligibility to open the account The parents or the legal guardians of a girl child can open an account on her behalf until she attains 10 years of age. Only one account can be opened in the name of a given girl child under the Sukanya Samriddhi Yojana and a family can only open a maximum of two accounts if there are more than one girl child in the family. On the other hand, any Indian resident can open a PPF account. This account can also be opened on behalf of a minor. Maturity tenure The tenure of a SSY scheme is 21 years or when the girl gets married after attaining the age of 18. PPF scheme comes with a lock in period of 15 years. Minimum and maximum amount of deposit The minimum amount that can be deposited in a SSY scheme is Rs 250 and it is Rs 500 in case of PPF scheme. The maximum amount that can be deposited in both these schemes per year is Rs 1.5 lakhs. Tax benefits Section 80 C under the Income Tax Act of 1961 allows tax exemptions for an upper limit of Rs 1.5 lakhs per year invested in both these schemes. In this regard, these schemes are just similar to each other. Interest rates Both these schemes come with an interest that is compounded on an annual basis. The interest rates of both these schemes vary year on year and at present the interest rate is 7.9% for SSY and it is 8.4% for PPF. Managing the accounts An SSF account or a PPF account can be opened in a bank or post office that offer these schemes. Also, they can be transferred from a bank to post office and also vice versa. Liquidity In SSY scheme, complete withdrawals are allowed only when the girl child attains 21 years of age or when her marriage is arranged after her 18th year. Up to 50% of the amount accrued can be withdrawn for the girl’s education or marriage after the girl attains 18 years. In a PPF scheme, partial amount (50% of what has accumulated) can be withdrawn after the 6th year of opening the account. How to decide between them Sukanya Samridhi Yojana and a PPF scheme have many things in common between them. However, the choice of the right investment option will have to depend on the reasons for the investment and what you expect from the investment.

PPF Vs Sukanya Samriddhi Yojana Scheme, which is better?

<keyword id="6380711" type="UNKNOWN" weightage="20" keywordseo="post-office">Post Office</keyword> in India provides a host of savings schemes to the citizens and most of them assure a risk-free high returns on the investments. The reliability and operational convenience of the different post office savings schemes have made a lot of Indians turn towards these investment instruments as highly sought after options. Offered through 1.54 lakh post offices located across the country, some of the major benefits of these schemes include attractive tax benefits, reliability, security and high interest rates. Here is a list of some post office savings schemes and their unique advantages over other investment options. Some popular post office savings schemes <ul><li>Post Office Savings Account</li><li>Post Office Recurring Deposit Account (RD)</li><li>Post Office Time Deposit Account (TD)</li><li>Post Office Monthly Income Scheme Account (MIS)</li><li>Senior Citizen Savings Scheme (SCSS)</li><li>Public Provident Fund Account (PPF)</li><li>National Savings Certificates (NSC)</li><li>Kisan Vikas Patra (KVP)</li><li>Sukanya Samriddhi Accounts (SSA)</li></ul>Unique advantages of post office savings schemes Ease of operation The various post office savings schemes are very easy to operate. They are highly suitable both for rural as well as urban investors. The ease of accessing them and operating them make them attractive options for people from all walks of life. Simplicity and government support All the post office savings schemes are simple in their nature without any need for cumbersome documentation. Since these are backed by the government, there are much safer than the other kinds of investment instruments. Long term investment options Some post office savings schemes like PPF (Public Provident Fund) are long term oriented. They are also forward looking to meet the retirement needs of the investors. Hence such schemes give room for pension and retirement planning. Tax exemption The majority of the post office savings schemes carry tax deductions under Section 80C for the amount deposited in them. The interest earned from savings schemes like PPF, <keyword id="2713906" type="PERSON" weightage="20" keywordseo="Sukanya-Samriddhi-Account">Sukanya Samriddhi Account</keyword> and SCSS enable for claiming tax exemption for the amount earned as interest through these investments. High interest rates and risk-free nature The interest rates in the various post office savings schemes range from 4% to 9% which is very attractive in many cases when compared to the interest rates offered by the different kinds of bank deposits. Since post office is an undertaking by the Government of India, the investments in them are safer as against investing in the private sector and even in some other kinds of banks. Wide range of investment choices Post offices offer a wide portfolio of investment options for different categories of investors and across different purposes of investments. Hence depending on their situation and need, the investors can choose the instrument that meets their needs and expectations. Take away The ultimate objective behind the various savings schemes operated by the government through post offices is to provide the citizens with safer and easier investment avenues. All these schemes are very easy to manage and the money invested in them is safe without being subjected to any kinds of risks whatsoever while letting the people achieve their financial goals in a much better way.

Post Office Saving Schemes: which are best?

Both the <keyword id="114852" type="ORGANIZATION" weightage="20" keywordseo="Public-Provident-Fund">Public Provident Fund</keyword> (<keyword id="76579" type="CITY" weightage="20" keywordseo="PPF">PPF</keyword>) scheme and the <keyword id="2757237" type="PERSON" weightage="20" keywordseo="Sukanya-Samriddhi-Yojana">Sukanya Samriddhi Yojana</keyword> scheme are two investment options backed by the Government of India. Hence both these plans assure safety and security of the invested amount. Also, Section 80 C of the Income Tax Act of 1961 allows tax exemptions for the contributions made on them. Here we compare between these two investment options to know how to choose between them. Nature of these schemes The main objective of the <keyword id="248266" type="PERSON" weightage="20" keywordseo="Sukanya">Sukanya</keyword> Samriddhi Yojana investment is to secure a girl child’s future. PPF can be understood as a small savings scheme that can give good returns in the long term. Eligibility to open the account The parents or the legal guardians of a girl child can open an account on her behalf until she attains 10 years of age. Only one account can be opened in the name of a given girl child under the Sukanya Samriddhi Yojana and a family can only open a maximum of two accounts if there are more than one girl child in the family. On the other hand, any Indian resident can open a PPF account. This account can also be opened on behalf of a minor. Maturity tenure The tenure of a SSY scheme is 21 years or when the girl gets married after attaining the age of 18. PPF scheme comes with a lock in period of 15 years. Minimum and maximum amount of deposit The minimum amount that can be deposited in a SSY scheme is Rs 250 and it is Rs 500 in case of PPF scheme. The maximum amount that can be deposited in both these schemes per year is Rs 1.5 lakhs. Tax benefits Section 80 C under the Income Tax Act of 1961 allows tax exemptions for an upper limit of Rs 1.5 lakhs per year invested in both these schemes. In this regard, these schemes are just similar to each other. Interest rates Both these schemes come with an interest that is compounded on an annual basis. The interest rates of both these schemes vary year on year and at present the interest rate is 7.9% for SSY and it is 8.4% for PPF. Managing the accounts An SSF account or a PPF account can be opened in a bank or post office that offer these schemes. Also, they can be transferred from a bank to post office and also vice versa. Liquidity In SSY scheme, complete withdrawals are allowed only when the girl child attains 21 years of age or when her marriage is arranged after her 18th year. Up to 50% of the amount accrued can be withdrawn for the girl’s education or marriage after the girl attains 18 years. In a PPF scheme, partial amount (50% of what has accumulated) can be withdrawn after the 6th year of opening the account. How to decide between them Sukanya Samridhi Yojana and a PPF scheme have many things in common between them. However, the choice of the right investment option will have to depend on the reasons for the investment and what you expect from the investment.

PPF Vs Sukanya Samriddhi Yojana Scheme which is better?

When it comes to investments, you always need to do a careful planning and research before settling with an option. This is because, the decision you make can affect the several aspects of your investment like flexibility of operation, tenure and interest rate besides many others. Here we compare between the FDs offered by banks and the Post Office Savings Scheme to decide which among them is the better option for investors looking from different angles. Bank FDs and Post Office Savings Bank FDs are the conventional fixed deposit investment instruments offered by different banks. Any amount of money without any upper limit can be invested in FD for a period ranging from 12 months to 60 months. The rates of interest for FDs vary between banks and for different categories of investors like regular investors and senior citizens. Post Office Savings scheme is operated by Post Office which is also popularly called as small savings scheme. They are known to offer far better interest rates and returns than bank deposits. Here is a comparison of the different features of FD and Post Office Saving Scheme. Interest rate of Bank FD and Post Office To compare the interest rate between FD and Post Office, let us take the case of SBI for example. SBI is the largest lender in the country. While SBI offers only 5.75% interest on your investment in FDs, a five year term post office term deposit can give you 7.4%. The interest rate of PPF is 7.8%. NSC offers 7.6% interest on deposits and the interest rates for deposits in <keyword id="248266" type="PERSON" weightage="20" keywordseo="Sukanya">Sukanya</keyword> Samriddhi and KVP are 8.1 percent and 7.3 percent respectively. Tax efficiency When compared to the banks FDs, some schemes offered by the post office are seen to be more tax efficient. For instance, what is earned from PPF is completely tax exempted. On the other hand, all that is earned from FD is taxable. Under Section 80C, it is possible to get tax savings for bank FDs. Some select post office savings schemes like PPF, National Savings Certificate, and Sukanya Samriddhi can give the investors similar tax benefits. Since post office savings schemes combine in them a higher interest rate as well as some attractive tax benefits, they weigh more than the bank FDs. Advantages for senior citizens in FD and Post Office Majority of the bank deposits do not give any encouraging benefits to senior citizens. Whereas, the Senior Citizens Saving Scheme offers 8.3% per annum. The senior citizens looking for monthly income will find the monthly income scheme much better at Post Offices s it would offer an interest rate of 7.3% per annum. The monthly interest rates on the bank deposits are considerably lower and hence are not that beneficial when compared with the post office savings schemes. Service quality in Bank FD and Post Office In this one aspect, the banks significantly outweigh the post offices. When it comes to customer service, banks work with the latest and advanced technology today. The experience at the post office can be time consuming and tedious involving a lot of paper work. However, considering the significant gains that you have while investing in the post office savings schemes, you can overlook this aspect and settle with these better investment instruments to gain more from your hard earned money.

Bank FD Vs Post Office Saving Scheme : Which Is Better

It’s that time of the year when people run around, searching for ways to save tax. In this matter, Section 80 C of the <keyword id="6354751" type="COMPANY" weightage="20" keywordseo="Income-Tax">Income Tax</keyword> Act gets the most amount of attention from investors, as it allows tax exemption through some popular investment instruments. Premiums paid for life insurance policies, investments in <keyword id="762633" type="UNKNOWN" weightage="20" keywordseo="equity-linked-saving-schemes">Equity Linked Saving Schemes</keyword> (<keyword id="103549" type="CITY" weightage="20" keywordseo="ELSS">ELSS</keyword>), five-year fixed deposits, National Savings Certificates (NSC), Public Provident Fund (<keyword id="76579" type="CITY" weightage="20" keywordseo="PPF">PPF</keyword>) and investment in Sukanya Samriddhi Yojana are some such instruments. 
 
Among these, ELSS has the potential to beat the long-term returns from all other investment options. It also allows you to save tax up to Rs. 1.5 lakh under Section 80 C. Let’s understand what ELSS is and what are the associated benefits through this article. 
 
What is ELSS? 
Equity Linked Saving Schemes (ELSS) are open-ended mutual funds with at least 65% exposure to equity. Although there’s a high degree of risk involved in this investment, it is beaten down in the long run. The returns earned through ELSS funds have outperformed other investment instruments in the long run. 
 
According to the CRISIL - AMFI ELSS Fund Performance Index in December 2016, ELSS funds as a mutual fund category have returned 3.35% in the last year, 16.64% in three years, 17.71% in the last five and 10.61% in 10 years. 
 
The minimum investment in ELSS has to be Rs. 500, while there’s no limit on the maximum amount you can put in. ELSS comes with a lock-in period of three years and withdrawal cannot be done before the completion of the stipulated period. On completion of the stipulated period, you can either redeem your scheme or continue with it. Returns from ELSS is tax-free on completion of a year. 
 
Why is ELSS your best long-term bet? 
ELSS has proven to be beneficial in terms of saving tax and yielding returns. Following are the benefits of ELSS: 
 
• ELSS allows you to claim tax deduction of up to Rs. 1.5 Lakh under Section 80C of the Income Tax Act. The proceeds on redemption of the scheme after three years of lock-in is also completely tax free. 
 
• Compared to PPFs, NSC and fixed deposits, the lock-in period associated with ELSS is relatively shorter, indicating more liquidity. 
 
• The highest ranked ELSS funds have provided a CAGR of around 20% in the last five years – far more than options such as PPF and NSC which can provide returns in the range of 8-9%. Not just that, your ELSS returns are tax-free. 
 
• This scheme is highly affordable, as the minimum amount you can invest is only Rs. 500. If you don’t have a lump sum amount, you can even invest through Systematic Investment Plans (SIPs), depositing a small amount every month. 
 
• There is no fixed maturity period. Investors can stay invested as long as they want. 
 
• Investors earn dividends even during the lock in period and it is tax free. 
 
• The scheme forces you to stay invested at least for a period of three years without any interruptions. Moreover, if you opt for SIPs, you indulge in a more disciplined saving habit which ensures high capital growth. 
• 
ELSS and other instruments that allow exemptions under Section 80C 
 
Here is a comparative analysis of ELSS and other popular investment instruments:

Looking to save tax? Give an ELSS fund a chance – For tax savings & wealth creation

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It’s one year completion for Modi government and guess what? Inspired by the political watchers, critics have started filing the report card of success and failures of the government that has been in the centre for a year. 
 
The government has launched a few social security schemes, which are of enormous significance for the masses. At a cost of a nominal premium, these schemes ensure comfortable future for many. 
 
<a href="http://economictimes.indiatimes.com/wealth/savings-centre/analysis/modi-governments-social-security-schemes-how-less-than-rs-20-a-day-can-secure-financial-future/articleshow/47395379.cms">The Economic Times</a> has listed the schemes along with the specifications, eligibility and detailed benefits . 
 
 
1) Atal Pension Yojana 
 
WHAT IT OFFERS: Pension between Rs 1,000 and Rs 5,000 a month. 
 
WHAT IT COSTS: For a monthly pension of Rs 1,000, a 40-year-old subscriber will have to invest Rs 291 per month for 20 years, while an 18-year-old will have to contribute Rs 42 per month for 40 years. 
 
WHO IS ELIGIBLE: All individuals between 18 and 40, who will have to contribute till they turn 60. 
 
WHO SHOULD OPT FOR IT: This is an investment you need to make on behalf of your domestic staff who may not have anyone to look after them once they stop working. 
 
 
 
2) Pradhan Mantri Suraksha Bima Yojana 
 
WHAT IT OFFERS: Accidental death and disability cover of Rs 2 lakh. 
 
WHAT IT COSTS: Premium is Rs 12 per year. 
 
WHO IS ELIGIBLE: Anybody who has a savings account in the banks that offer this scheme. 
 
WHO SHOULD OPT FOR IT: Although it is for everybody, this scheme especially suits drivers, security guards, newspaper vendors, vegetable vendors and others who are exposed to the risk of accidental death or disability. 
 
 
 
3) Pradhan Mantri Jeevan Jyoti Bima Yojana 
 
WHAT IT OFFERS: A pure protection term insurance cover which pays Rs 2 lakh to dependents in the event of the policyholder's death. 
 
WHAT IT COSTS: Premium is Rs 330 a year. 
 
WHO IS ELIGIBLE: Anybody in the age band of 18-70 years who has a savings account in a bank that offers this scheme. 
 
WHO SHOULD OPT FOR IT: This is a must for any member of your staff who is the sole breadwinner in his or her family. 
 
 
 
4) Pradhan Mantri Jan Dhan Yojana 
 
WHAT IT OFFERS: A savings account with no minimum balance. The Rupay ATM-cum-debit card comes with in-built accident and life covers of Rs 1 lakh and Rs 30,000 respectively. 
 
WHAT IT COSTS: Nil 
 
WHO IS ELIGIBLE: Anyone belonging to the economically weaker sections of society. As all future welfare and subsidy schemes are likely to be linked to it, it is a must for your staff. 
 
WHO SHOULD OPT FOR IT: All those working in the unorganised sector. You can transfer salaries directly into the accounts of your domestic staff to inculcate a banking habit in them. 
 
 
 
5) Post office time deposits and bank FDs 
 
WHAT IT OFFERS: Time deposits with tenures of one to four years yield 8.4%, while five-year deposits will earn 8.5%. Bank fixed deposits in the name of your employees' senior citizen parents will earn 9-9.25%. 
 
WHAT IT COSTS: The minimum investment for post office time deposits is Rs 200 and there is no cap. 
 
WHO IS ELIGIBLE: Anyone with a bank account or Aadhar card. 
 
WHO SHOULD OPT FOR IT: These investments will help meshorter term requirements of your staff and other unorganised workers like housing loan down payment, coaching class fees and so on. 
 
6) Kisan Vikas Patra 
 
WHAT IT OFFERS: A secure interest rate of 8.7% and the promise to double the investment in 100 months. 
 
WHAT IT COSTS: The minimum investment is Rs 1,000. No maximum limit. 
 
WHO IS ELIGIBLE: All 
 
WHO SHOULD OPT FOR IT: All domestic workers, vendors and neighbourhood workers to fund their medium term requirements. 
 
 
 
7) Sukanya Samriddhi Scheme 
 
WHAT IT OFFERS: Guaranteed annual returns of 9.2%. 
 
WHAT IT COSTS: Minimum contribution is Rs 1,000 a year and the maximum is Rs 1.5 lakh. 
 
WHO IS ELIGIBLE: Girl child below the age of 10. 
 
WHO SHOULD OPT FOR IT: Most domestic workers tend to take their daughters out of school to help with household chores or to make way for their brothers, whose education is considered more important. This serves as an incentive to save for a daughter's education and marriage. 
 
 
 
8) Health insurance 
 
WHAT IT OFFERS: Cover for expenses incurred during hospitalisation due to illness or surgery. 
 
WHAT IT COSTS: Rs 700-800 a year for a cover of Rs 50,000 for indivuduals aged between 18 and 40 years. 
 
WHO IS ELIGIBLE: All 
 
WHO SHOULD OPT FOR IT: Hospitalisation can wipe out the entire savings of those already at a financial disadvantage. Though not offered by the government, affordable policies are available from state-owned non-life insurers like New India Assurance and Oriental Insurance. 
 
The ET has further calculated how much these might cost. 
 
 
HOW IT STACKS UP 
 
Pradhan Mantri Jan Dhan Yojan = NIL + Pradhan Mantri Jeevan Jyoti Bima Yojana = Rs 330 + Pradhan Mantri Suraksha Bima Yojana = Rs 12 + Atal Pension Yojana = Rs 3,492* + Health Insurance = Rs 800* + Sukanya Samriddhi Scheme = Rs 1,000# + Kisan Vikas Patra = Rs 1,000# + Post Office Time Deposits = Rs 200# 
 
All this adds up to = Rs 6,834 (The total amount you need to spend on staff welfare measures in a year) 
 
*Assuming your employee is 40 years old and monthly pension chosen is Rs 1,000 in case of APY. #If minimum requirement is invested 
 
(Image: Reuters)

8 Insurance Schemes Modi launched and how they benefit you

I sat on a chair with a paper in my hand trying to help the girl solve a Class II level double digit multiplication problem. She was shy and did not say much. She tried solving it on the sheet but there was no progress. I gave her hints, patiently waited for her to respond to that. But after a couple of minutes she gave up. Her father kept a close watch on the proceedings, slightly amused at my attempts to draw her attention towards the task at hand. I could see her mother standing at the other end of the kutcha house not very pleased with her daughter’s performance. She had been very proud of the fact that her daughter was in Class VIII in the local government school. Very few girls in the village went to school at this age. This was Chitgunwa, a small village near Jhansi where I had been assigned to conduct a survey on the level of public <keyword id="6355445" type="COMPANY" weightage="20" keywordseo="Education">education</keyword>. 
 As India gets ready for the <keyword id="3206186" type="UNKNOWN" weightage="20" keywordseo="Union-Budget-2016">Union Budget 2016</keyword> amidst all the chaos that has preceded the Parliament session, it is necessary to look at budget from the perspective of that girl child or more importantly her mother. As a student of a business school, I am tempted to write on a number of issues pertaining to Indian fiscal policy which affects the business environment of the country or the startup ecosystem in India. But let me take a different route and list down few areas where adequate budgetary intervention could help the mother and her daughter regain their confidence in the system. 
 
Education is one of the key requirements to convert India’s demography into productive human capital. While enough emphasis has been laid on the access of education resulting in Gross Enrolment Ratio of 104.3% , the quality of education remains dismal. India has been consistently spending close to 4-5% of the total budget on education , but the proportion spent on primary education has been falling since last three years (Exhibit 1). The budgetary allocation for Mid-Day Meal Programme was reduced from INR 13,215 cr (2014-15) to INR 9,236 cr (2015-16) . The spend on the quality of education which includes ‘activities to improve learning, such as learning enhancement programmes and innovation grants’ in Sarva Shiksha Abhiyan and teacher training is also extremely low (Exhibit 2). 
 
India needs a budget where adequate allocation is made to improve the quality of primary education. The first step would be determining the nature and magnitude of quality improvement required. This can be achieved through regular and sound measurement of outcomes. Another area which requires greater budgetary intervention is teacher training. Average teacher training spend was less than an appalling 3% of the elementary education budget over the past 6 years. This needs to change. India’s primary education curriculum has been severely criticised as being over ambitious and unrealistic. This must be reviewed through a comprehensive research exercise. The curriculum must have both academic and vocational components which could address the economics of retention in secondary and higher education. There must be emphasis on innovation and reasoning which could go a long way in eliminating 140 characters of opinion building process. The government started the “Beti Bachao Beti Padhao” scheme through a corpus fund of INR 100cr .There is also a Sukanya Samriddhi Scheme to save for girl child’s education. But we need to do more. A comprehensive action plan with regular evaluation of the outcomes will go a long way in proper implementation of the schemes. This must be backed with adequate financial support through the budgetary allocation. 
 The other area which would matter for the mother and her daughter would be access to <keyword id="6354525" type="COMPANY" weightage="20" keywordseo="Healthcare">healthcare</keyword> and sanitation. The previous budget was disappointing in terms of allocation to the health sector. Public spending on health sector is paltry 1.3% of the total <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword> in India . The budget for Integrated Child Development Services (ICDS) was slashed by almost 50% last year3. India also tops the global list with 318 deaths per 1000 children under 5 years of age due to diarrhoea and pneumonia . This is unacceptable for a country that is looking to embark on a path of sustained growth. The government must realize the importance of public healthcare spending and act accordingly. 
 
The focus should be on preventive healthcare as it serves the twin purpose of decreasing the government spending on secondary and tertiary care and the out of the pocket expenditure which results in severe health shocks leading to acute financial distress. India ranks third in the world in the out of the pocket spending on healthcare. The government’s flagship programme Swacch Bharat was criticised by CAG recently for failing to achieve the desired targets due to weak implementation. “Audit clearly reveals the failure of the sanitation programmes in achieving the envisaged target” it pointed out. In FY 2015-2016 INR 3,265 cr was allocated for Swacch Bharat Mission which was 27% hike from the previous year . Although allocations had increased, a large sum of money remained unspent. There are issues at multiple levels – evaluating a scheme on the number of toilets built is flawed. The CAG report mentions “more than 30% of individual household latrines remain non-functional”10. Building toilets is not the solution until focus is shifted on solid waste management system and treatment plants. It is vital to understand the link between front end (toilets) and back end (collection and treatment) so that appropriate resource allocation can be made in the upcoming budget. 
 
India stands at a very crucial juncture in its journey. It has been doing well on certain fronts but a lot more needs to be done. A budget which brings the focus back on education and health is what will make this growth story truly sustainable. 
 
(The article has been authored by Rishabh Raj, Post Graduate student at IIM Bangalore. A Graduate from IIT Kanpur, he has worked for two years in a management consulting firm and one year in the public policy space under a Member of Parliament)

Here's what an IIM student feels the Budget should have, after he met a family in a village near Jhansi

<ul><li>How to save <keyword id="45031" type="General" weightage="20" keywordseo="tax" source="Orion">tax</keyword> while investing wisely is a crucial part of every working person’s life.</li><li>Let’s make it easy for you and here are a set of options to spread your investments for <keyword id="35453" type="General" weightage="20" keywordseo="tax-saving" source="Orion">tax saving</keyword> purposes.</li><li>Check out our <a href="https://www.businessinsider.in/bi-newsletter">weekly explainers</a> on the hottest topics and <a href="https://www.businessinsider.in/newsletters_signup.cms">sign up</a> if you like them</li></ul>The best time to start your tax saving investments is at the beginning of a calendar year or a financial year. While tax planning is important, getting aware of all tax saving schemes and choosing the right one is crucial. Tax saving schemes ensure you don’t pay more taxes and make money in the long run by investing in savings-oriented schemes. Here are some of the best tax saving options with a deduction of up to ₹1.5 lakh in your income tax for the year. Here are a few options of tax saving schemes: ELSS Mutual Fund Equity-linked saving scheme (ELSS) is a type of mutual fund scheme that primarily invests in equity funds. ELSS offers tax benefits to investors. The investments in the scheme are eligible for tax deduction under section 80C of the Income Tax Act, 1961 up to a maximum of ₹1.5 lakh. One can invest through both lump sum and systematic investment plans (SIP) to avail the tax deduction. This way, ELSS offers both investment and tax saving benefits. Here are the five top performing ELSS funds in the industry: <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Funds </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% return in last 3 years </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Quant Tax Plan </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">37.52% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BOI AXA Tax Advantage </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30.92% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mirae Asset Tax Saver </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">26.53% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Canara Robeco Equity Tax Saver </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">26.19% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IDFC Tax Advantage (ELSS) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">24.54% </td></tr></tbody><tbody></tbody></table>Source: <a href="https://www.valueresearchonline.com/funds/best-tax-savers/?return-period=3Y">Value Research</a> National Savings Certificate (NSC) NSC is a fixed income tax-saving investment plan that you can open with any post office branch. The scheme is an initiative of the government of India and hence is relatively safer. The investment in NSC qualifies for deduction under section 80C of the income tax act of up to ₹1.50 lakh. These certificates earn an annual fixed interest of around 6.8% per annum (revised every quarter by the government), thus guaranteeing a regular income for the investor. The scheme has two types of certificates -- 5-year and 10-year. National Pension Scheme (NPS) NPS is a pension cum investment scheme launched by the government of India to provide old age security to citizens of India. The scheme offers tax saving options to both government and private employees. Any citizen between the age of 18-60 can invest in it. The amount invested by the depositor is invested in several schemes including the equity markets. Again the basic amount of deduction offered by the fund is up to ₹1.5 lakh on the same amount of investment. However, NPS allows one to get an additional ₹50,000 deduction under section 80CCD (1B), taking the overall tax deduction amount to ₹2 lakh. Unit Linked Insurance Plan (ULIP) ULIP is offered by insurance companies that, unlike a pure insurance policy, gives investors both insurance and investment under a single integrated plan. A portion of the premium paid by the policyholder is utilised to provide insurance coverage to the policyholder and the remaining portion is invested in equity and debt instruments. ULIP also provides tax deduction up to ₹1.5 lakh. Here are the top 5 best performing ULIP plans in the industry: <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ULIP plans by insurance companies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% returns in last 3 years </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">PNB MetLife - Met Pension Plus </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">27.40% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">AEGON Life iMaximize Plan - Opportunity Fund </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">23.40% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bharti AXA Life - Future Secure Pension - Growth Opportunities Pension Plus </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">23.30% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Future Pension Advantage Plan - Future Pension Active </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">21.80% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Platinum Edge - Frontline Equity Fund </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">21.40% </td></tr></tbody><tbody></tbody></table>Source: <a href="https://www.moneycontrol.com/personal-finance/top-performing-ulips">Moneycontrol</a> Public Provident Fund (PPF) PPF is one of the safest <keyword id="381673" type="General" weightage="20" keywordseo="investment-options" source="Orion">investment options</keyword> to start with that can help you secure your retirement and save tax as well. The PPF has a minimum tenure of 15 years with as little as ₹500 to open an account. You can open a PPF account through a post office or in any nationalised bank. Income tax exemptions are applicable on the principal amount invested in a PPF account. The interest rate for PPF is set and paid by the government for every quarter which is currently at 7.1%, more than the savings rate in banks. Taxpayers can claim a maximum deduction up to ₹1.5 lakh. Sukanya Samridhi Yojana This is a small deposit scheme by the government of India targeted for the parents of a girl child as part of ‘Beti Bachao, Beti Padhao’ campaign. The scheme encourages parents to build a fund for the future education and wedding expenses for their female child. Sukanya Samridhi Yojana scheme offers interest rate of upto 7.6% along with tax deduction of up to ₹1.5 lakh. The account can be opened at any post office in India or at a branch of any authorised commercial bank. Home loan If you have taken a home loan to buy a new house, you are also allowed to claim a deduction of up to ₹1.5 lakh under section 80C of the income tax. The deduction can be claimed on the principal amount repaid in the particular financial year. Check your home loan interest certificate for EMI payment details. However, note that even if you put more money i.e ₹1.5 lakh each in any of the above tax saving options like ULIP, ELSS MF, your maximum deduction from taxable income will still be a total of ₹1.5 lakh only. However, investing in NPS can get you an additional ₹50,000 deduction, taking the overall tax deduction amount to ₹2 lakh. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/spicejet-is-finding-difficult-to-survive-with-rising-costs-low-cash-and-new-players-with-deep-pockets/articleshow/88742146.cms">It’s not just COVID-19 ⁠— SpiceJet’s survival is getting challenged by rising costs, low cash, and new players with deep pockets</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/indias-epassport-what-it-is-and-how-to-apply/articleshow/88750026.cms">India’s ePassport — What it is and how to apply</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/shares-of-hinduja-global-solutions-tanks-20-as-street-expected-two-times-the-dividend-announced/articleshow/88751657.cms">IT firm Hinduja Global Solutions tanks as street expected two times the dividend announced</a>

Best tax saving investment options in 2022

It’s really no surprise to see that the service sector has outperformed other sectors with its exceptional performance in this year’s Economic Survey Report Card. Why? 
 
Because, the sector has been on a roll for the past few years. Despite the slowdown post 2009, it showed the fastest growth of any sector with a compound annual growth rate of 8.6% followed by China at 8.4%. In 2014, its performance was even better. This time it was 10.3%, noticeably higher than China’s 8.0%. 
 
Therefore, the recent 9.2% figure is somewhat a repeat of its performance in the past. It’s, therefore, once again the key driver of growth for the Indian economy. 
 
What’s the mantra behind this consistent growth, you may ask. 
 
FOREIGN DIRECT INVESTMENT One, services is one of the most attractive sectors for foreign investment. It’s seen a whopping 70.4% growth in <keyword id="44528" type="ORGANIZATION" weightage="20" keywordseo="FDI">FDI</keyword> equity inflow in fiscal year 2014-15, which ended March 31 2015. This rising trend, more importantly, has been continuing for the last seven months. It’s growing by 74.7%. Much of the credit goes to <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword>’s decision to liberalize foreign investment policies in a number of sectors. The numbers are showing that India is increasingly becoming an attractive investment destination. 
 
TRADE 
Second, it’s always good for an economy to export more and import less. In 2004, India became the 8th largest services exporter in the world as its exports grew from US$ 16.8 billion to $155.6 billion in just three years’ time. Meanwhile, imports have shown only marginal increase. The recent figures suggest imports have risen by 3.3% in 2014-15. Once again, the government’s policy initiatives like the ‘Service Export from India Scheme’ (SEIS) and organizing ‘Global Exhibition on Services’ (GES) have helped a lot. 
 
TOURISM Third is Tourism. India’s tourism growth, which was 10.2% in terms of foreign tourist arrival and 9.7% in terms of <keyword id="6368276" type="COMPANY" weightage="20" keywordseo="Foreign-exchange">foreign exchange</keyword> earnings in 2014, decelerated to 4.5% and 2.8% respectively in 2015. This is due to negative or low growth in arrivals of high spending tourists from European countries like France, Germany, and the UK. However, domestic tourism is providing much needed resilience. In 2014 it grew by 12.9%, the same year when the government launched two schemes - Swadesh Darshan and National Mission on Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD). 
 
SHIPPING AND PORT SERVICES 
Around 95% of India’s trade by volume and 68% in terms of value is transported by sea. The country is ninth among developing countries in terms of container ship operations. Now, the numbers - cargo traffic on India ports increased by 8.2% to 1052.21 million tonnes in 2014-15. 
 
In India’s Maritime Agenda, the target for the year 2020 is 3130 million tonnes of port capacity. 
The long term vision for coastal shipping tourism and regional development is to increase the share of the coastal/inland water-ways transport mode from 7% to 10% by 2019-20. 
 
IT-BPM SERVICES The IT-BPM sector has demonstrated flexibility in the Economic Survey. It can touch a share of 9.5% of <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword> and more than 45% in total services export this year. E-commerce is playing a huge role here. It is expected to grow at 21.4% to reach US$17 billion. 
 
Ever since Narendra Modi came to power, India has seen a sudden boom in the startup sector. A new breed of young start ups has clearly evolved to become the third largest base of technology start ups in the world. Within one year the number of startups has grown by 40% creating 80,000-85,000 jobs in 2015. And, the future is bright because this emerging sector is set to get a fillip with the government’s Startup India programme. 
 
R&amp;D SERVICES 
There’s been a sudden jump in the growth of R&amp;D services. Growth increased from 3.8% in 2013-14 to 25.5% in the next year. The Economic Survey says India’s R&amp;D globalization and services market is further set to almost double by 2020 to US$ 38 billion. 
 
CONSULTANCY SERVICES 
Consultancy Services is one of the fastest growing service segments in India. And, Government has ‘Marketing Development Assistance Scheme’ and ‘Market Access Initiative Scheme’ going for this segment, among several others which are aimed for capacity development of domestic consultants. 
 
REAL ESTATE AND HOUSING 
This sector constituted 8.0% of India’s value of goods and services produced in 2014-15 and grew by 9.1%. It has shown impressive growth for the last few years, with a compound annual growth rate of 8.1% since 2011-12. 
 
The construction sector, however, has witnessed a slowdown since the last few years owing to weakening of both domestic and global growth. The Government is trying to push for growth via plans like Housing For All Scheme - to build six crore houses by the year 2022! 
 
MEDIA AND ENTERTAINMENT SERVICES 
This industry recorded unprecedented growth over the last two decades making it one of the fastest growing industries in India. 
 
It is projected to grow at an annual rate of 13.9% to reach Rs 1,964 billion by 2019. Digital advertising and gaming, which grew by 44.5% and 22.4% respectively in 2014, are projected to drive the growth of this sector in the coming years. 
 
POSTAL SERVICES: 
India Posts is the largest Postal network in world. It’s showing greater financial inclusion, as the number of post office savings bank accounts has increased from 30.86 to 33.97 crore and total deposits and cash certificate to Rs. 6.53 lakhs crore in the last one year. 
 
More than 80 lakh Sukanya Samridhi Yojna accounts have been opened. The IT Modernization Project of the Department of Posts, with a total outlay of Rs. 4909 crore, involves computerization and networking of all the post offices.

How
the services sector is the key growth engine for India

Ever since <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword> government has come to power, the common man of India has been waiting anxiously for the ‘achhe din’ that he had promised. While some of the recent announcements by the <keyword id="6377129" type="ORGANIZATION" weightage="20" keywordseo="Government-Of-India">Government of India</keyword> have certainly given them some hope, one thing that we believe has left every Indian overjoyed is: the dream of having their own home by 2022. This initiative by the Indian government has created more excitement among urban borrowers, who, so far have been struggling to find their own dwelling in their living city because of the exorbitant <keyword id="6354553" type="COMPANY" weightage="20" keywordseo="real-estate">real estate</keyword> prices and ‘not-so-affordable’ <keyword id="6354730" type="UNKNOWN" weightage="20" keywordseo="Home-loan">home loan</keyword> rates. 
 To encourage affordable housing in urban locations, National Housing Bank(NHB) has come up with a refinance scheme, wherein <keyword id="100080" type="ORGANIZATION" weightage="20" keywordseo="housing-finance">Housing Finance</keyword> Companies(HFC) can offer fixed rate on home loans of up to Rs 10 lakh. The rates are quite attractive and would help borrowers in purchasing low-cost housing in smaller cities and outskirts. 
 
This is a great initiative. A 'fixed home loan' for small loan borrowers, who do not plan to repay their loans in next 10 years, seems apt. 
 
However, to make the most of this scheme, borrowers first need to understand what it is all about to decide on a property purchase and subsequent home loan borrowing. To make things slightly easier for them, we have jotted down a few important points. Read on… 
 
Property you can buy includes 
 
You can avail the scheme for purchasing a readily-constructed or under-construction home. It can also be used for purposes like home extension or home improvement of the dwelling unit. For example, if you already own a single-storey house and you want to construct the first floor, you can opt for home loan under this scheme. Or, if you want to increase another room in your existing home, loan can be given to you in this scheme too. 
 
Please note that plot loans are not covered under this scheme as the essence is all about 'a roof over the head'. 
 
Scheme commences on 
 
This is applicable to all home loan borrowers w.e.f. 16th March 2015. The borrower needs to apply to the HFC, mentioning this scheme requirement clearly at the time of application. 
 
Terms &amp; conditions for the loan 
 
Fixed rate of interest is offered for initial 10 years and variable thereafter. Variable rate can be offered only if the customer opts for more than 10-year term, of which initial 10 years will be locked at fixed rate. If the customer wants only fixed rate, then the maximum term can not exceed 10 years. 
 
Simple variable Home Loan products can’t be offered under this scheme. 
 
Rate of interest that you would pay 
 
The following rate is applicable for both salaried &amp; self employed borrowers: 
 
9.85% p.a. fixed rate for initial 10 years &amp; variable thereafter linked to HFC's Prime lending Rate(PLR). The spread from PLR will be fixed on the date of disbursement and announced in advance by the HFC. 
 
For example, if the current PLR is 17% and the spread offered is 7.15%, then upon completion of the first 10 years' fixed term, if the then applicable PLR is 18%, the applicable variable rate for the borrower will be 18%-7.15%=10.85% p.a. 
 
 
Miscellaneous 
· Under this scheme, you are entitled for a 20-year loan term, unlike some other popular 30-year term, lenders do offer in the market. 
 
· You can buy property only in urban areas(as per 2011 census) under this scheme. 
 
· The maximum loan amount you get is Rs.10,00,000/- (Ten lakhs). 
 
· Processing fee is applicable as per HFC's policy. 
 
· Property cost or area measurement- either of the following should not exceed 
 
o Cost should not exceed Rs.16 lakhs OR 
o Carpet area should not exceed 60 sq.mt. i.e. 645 sq. ft. approximately. 
 
· Only people with family income less than Rs 4,00,000/-(Four lakhs) per annum can avail this benefit. 
 
 
This scheme should bring smile for the section who felt deprived of any special facilities for a very long time from the 
 
HFC-s. The priority sector lending had lost the sheen as anyone who was borrowing lesser amount was getting the leverage. There was no specified income group or property size or price wasn't looked at very seriously. 
 
People should get encouraged to buy their own homes and enjoy the fixed rate stability for the next 10 years and relax. #AccheDin. 
 
 
(About the author: This article has been contributed by Sukanya Kumar, Founder and Director of RetailLending.com.)

A home for everyone in a few simple steps

With the <keyword id="6360189" type="COMPANY" weightage="60" keywordseo="Union-Budget">Union Budget</keyword> 2015-2016 just behind us, it is that time of the year when the pink papers are rife with what <keyword id="6355261" type="POSITION" weightage="80" keywordseo="Finance-minister">Finance Minister</keyword> <keyword id="42575" type="PERSON" weightage="80" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> has delivered to the nation. If all that the experts are saying are somewhat getting lost in translation for you, don’t worry. We have delved a little deeper to see how it all translates for you. Check out! 
 
The impact on your salary and savings 
 Finance Minister Arun Jaitley has hiked the tax exemption on transport allowance to Rs 1,600 from Rs 800 a month. This means you can claim an annual deduction of Rs 9,600 annually on transport allowance. There’s more you can save with tax exemptions. The limit of reduction on health <keyword id="35450" type="COMPANY" weightage="80" keywordseo="insurance">insurance</keyword> premiums has been enhanced to Rs 25,000 from the earlier Rs 15,000. Senior citizens get a higher tax exemption of Rs 30,000 on health insurance premiums from the earlier slab of Rs 20,000. For very senior citizens (above 80 years) who cannot take health insurance, Rs 30,000 has been exempt annually for medical expenditure. In case of specified diseases of very senior citizens the tax deduction has been enhanced to Rs 80,000 from the earlier Rs 60,000. 
 
The differently-abled citizens have also been kept in mind. The limit of deduction for the medical expenditures of such citizens has been hiked to Rs 75,000 from the earlier Rs 50,000. In case of severe disability this limit has been hiked to Rs 1.25 lakh from the earlier limit of Rs 1 lakh. 
The BJP government also wants you to be conscious and put away money in a retirement corpus. Therefore, for making a contribution towards any pension fund and the New Pension Scheme, you get a deduction of Rs 1.5 lakh from the earlier deduction limit of Rs 1 lakh. 
 
If you have a girl child, there is further good news for you. The finance minister has announced that all investments in the recently launched “Sukanya Samriddhi Scheme”, a small savings account for the girl child, as well as all payments to the beneficiaries including interest payment is exempted from taxes. 
 
Fuelling the Indian passion for gold 
 Indians have traditionally been smitten by the yellow metal. But they have a tendency to hoard it, which does nothing for the economy. The <keyword id="6360789" type="ORGANIZATION" weightage="80" keywordseo="Modi-Government">Modi government</keyword> has, therefore, come out with new ways to fuel this Indian fascination for gold. Firstly, the finance minister announced the introduction of a Gold Monetization Scheme. This will work just like a deposit scheme, where you can deposit your gold in a bank and earn interest on it. There will also be a new sovereign gold bond that can serve as an alternative to purchasing the metal gold. This bond will carry a fixed rate of interest and can be redeemed against the face value of gold at the time of redemption. Further to discourage those who purchase gold coins from abroad, the finance minister announced that work shall soon commence on developing an Indian gold coin that will carry the imprint of the Ashok Chakra. 
 
Uplifting the youth –Make in India 
 The BJP government has taken cognizance of the fact that in order to boost the population of a nation like ours that is young and aspiring, concrete steps need to be taken to encourage <keyword id="107737" type="ORGANIZATION" weightage="80" keywordseo="Entrepreneurship">entrepreneurship</keyword>. Therefore, the finance minister announced the allocation of Rs 1,000 crore to encourage entrepreneurship and startups in the country. Further, the finance minister announced a special fund allocation of Rs 150 crore for the creation of a new innovation platform called the <keyword id="2746648" type="UNKNOWN" weightage="60" keywordseo="Atal-Innovation-Mission">Atal Innovation Mission</keyword>, which will encourage research and development and promote a network of innovation hubs across India. It was heartening to note that the government believes that the youth of India should be “job creators” and not “job seekers”. Therefore, the Centre has introduced these steps to motivate the Indian youth. 
 
The other laudable initiatives towards harnessing the power of the youth that Arun Jaitley announced were the proposals to launch the “National Skills Mission”. It will focus on skill development and vocational training and the formation of a new scheme called “Nayi Manzil”, which will bring confidence among the unemployed youth minority in India. 
 
All of these measures have been taken keeping in mind the “Make in India” initiative of the central government. The policymakers seem keen to harness the great potential of the Indian youth to give a boost to manufacturing, entrepreneurship and creativity in the nation. This will take the country to its next growth trajectory. 
 
What gets cheaper and what gets costlier 
 After every budget is announced, all that the common man wants to know is what gets cheaper for him and what is it that he will have to shell out more for. So here is the lowdown. As a precursor to the Goods and <keyword id="645517" type="COMPANY" weightage="80" keywordseo="services-tax">Services Tax</keyword> (<keyword id="6354679" type="ORGANIZATION" weightage="80" keywordseo="GST">GST</keyword>) that comes into play from April 2016, the government has proposed a consolidation of education cess and <keyword id="6355686" type="COMPANY" weightage="60" keywordseo="Service-tax">service tax</keyword>. Thus, the service tax that you have to shell out is 14% instead of the earlier 12.36%. As a result, restaurant bills, laundry services, visits to the beauty parlor, gym memberships, air travel, radio taxi travel, watching movies in multiplexes, and cigarettes are set to get costlier. 
 But wait, all is not lost! For those who have a shoe fetish can rejoice as leather footwear is set to become cheaper. The reason being that <keyword id="6356916" type="UNKNOWN" weightage="80" keywordseo="excise-duty">excise duty</keyword> on leather footwear has been brought down from 12% to 6% for those footwear that are priced at more than Rs 1,000 per pair. Other items that are set to get cheaper are locally manufactured mobile phones, LED/LCD panels (go ahead and change your television set now!) LED lights, biscuits, juices, processed foods, refrigerator compressors and microwave ovens. Visits to museums, zoo and national parks will also be cheaper. 
 
In conclusion, it is therefore right to say that the finance minister did not go overboard to make populist announcements and given the fiscal constraints that he is still operating under as a legacy of the previous government, he has done his bit to boost the spirits of the ‘aam aadmi’. Sure, cigarettes and eating out are set to become costlier, but that is not such a bad thing is it? How about giving your lungs some fresh air and cooking up a storm at home? 
(Image: BCCL) 
(About the author: Rajiv Raj is the director and co-founder of <a href="http://www.creditvidya.com/">www.creditvidya.com</a>.)

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