Car News

From last year the bank fixed deposit interest rates have been reduced to half. The people who are intended to purchase of house, vehicle, on loan, they may happy about the news of reduction of bank deposit rates. But the depositors like retirement people, who are intended to keep the money in the safety banks and to receive regular interest on their deposits so as to pull their lives only on the accrued interest are not happy about this news. In these circumstances what can be done by the depositors. If the money has been deposited in other institutes, depositors may gain some extra interest, on the banks offering interest but the risk factors are very high. Most of the depositors who are showing interest to deposit their money in the banks are not interested against the risk factors. As such the details of safety deposits available in the Postal schemes, and the Bank offering interest rates are produced here under for glance:

The State Bank of India is the largest Bank in the country. In the previous months the S.B.I has reduced the interest rates ½ % and ¼%. Recently also has reduced the interest rate on the fixed deposits. Based on the State Bank of India decisions the entire bank industry will be influenced. As such the other banks may reduce their interest rates on the fixed deposits. As a matter of fact for long terms deposits all banks are offering maximum @ 8% interest only. In future if the rate of interest has been reduced from 8% then the depositors may not have any interest to deposit their money in the banks. In view of these circumstances the Post office schemes are seems better. At present on several post office schemes maximum 8% interest rate is available. On the term deposits, i.e., from 1 to 5 years, 6.25% interest to 7. 25% interest rate is offering.

After Dewali festival the special schemes offered by the banks at the time mobilization of deposits are taking back by the Banks. On fifth of this month, the S.B.I. has withdrawn their special deposit scheme. Some of the banks have already declared that this kind of deposits will be withdrawn very shortly by them i.e., after Dewali festival.

The S.B.H Bank has intended to withdraw their special deposit scheme after Dewaali festival. On the same lines I.D.B.I Bank has also with drawing their special deposit schemes,most probably by this month ending.

The State Bank of Hyderabad is offering 7.5% on 1000 days special deposit scheme.

The I.D.B.I Bank is offering 6.5% on the deposit of from 6 months to one year term deposit, but it has extended only up to October 31^st. The Karoor Vysya Bank is offering a special deposit scheme for the Senior citizens. For one year to below 2 years below deposits 8% , 2-3 years 8.25 % and 3 to 5 years 8.5% interest rates are offering.

In the particular time of reducing of bank rates the following banks are offering some little higher interest. The Catholic Serian bank, and Development Credit Bank (DCB) are offering 8.5% interest on one year and above deposits. These two are in the private sector. The banks related to private Sector ie., Karnataka Bank and Dhanalaxmi Bank they are offering 8% interest. The State Bank of Patiyala which is in the Government Sector is offering 8% interest on this kind of deposits. This is very interest.

Please follow the details interest rates offering by the private sector banks

THE IMPORTANT BANKS IN THE COUNTRY ARE OFFERING THE FOLLOWING INTEREST RATES.

These interest rates are applicable only below 15 lakhs deposits. The banks mentioned in the table S.B.I, OBC have already reduced their interest rates. Other banks may reduced their interest rates in future

New Income tax code is coming in the place of 1961 income tax code. This new code will be simple. But this is under process. Let us see the special features in new codes.

In this new code, the income is divided into 2 categories. One is regular sources, and the second one is extra revenue sources. Regular sources means,
1.The revenue generated by doing job.Suppose, instead of salary, if they get profits or any gifts, will come under regular sources.
2.Revenue through houses.
3.Business revenue.
4. Revenue from capital gains.

The interest, Dividends which haven’t paid the Distribution tax, Royalty, Technical Service charges or fees, lottery revenue, betting revenue are considered as Other revenue sources.

New Features in New Income Tax Code:
-Foreign income, which is tax paid in other countries also should pay the tax in India. Because we have the dual tax agreement with the foreign countries.
-Business assets and investment assets are divided separately, such that to recognise the sources clearly.
-Mutual funds, Venture capital funds, Life Insurance companies are having ‘Pass Through’ facility. That means the income from these organisations will not have tax. But the investors of these organisations have to be pay the tax.
-One more proposal is there to cancel the tax on securities transactions.
-Banking organisations has to pay the 25% tax, or 0.25% on total assets.
-Tax on TA and DAs of government employees.
-Corporate companies has to pay the 25% of their profit or 2% of assets, which are high.

DMAT account means dematerialized account. To save the money and to operate the cheque transactions the general bank account is sufficient. Like that for purchase of shares and sale of shares the DMAT account is compulsory. In general bank account the cash is occupied the main place, in the DMAT account the share will occupied the main place.

To open DMAT account D.P (depository participant – like bank branch) to be contacted. The companies must issue physical, DMAT shape securities. The investors can select any one. In physical securities duplicate, forgery cases can be found. The theft problem is always behind us. So DMAT procedure is safe in all times.

Let us say, you are having 150 infosys, 50 wipro shares. With the help of electronic system all the shares will be credited to the DMAT account. So there is no need to show the share certificates. With reference to your business transactions the available shares in the DMAT will be changed. The D.P will send the statements for these business transactions.

Is the DMAT account compulsory?
At present the DMAT account is made compulsory, the trading transactions are conducted on the procedure of dematerialized. Really above 500 shares, the transactions will be conducted on physical procedure. The C.B is permitting to conduct transactions on the physical procedure but the permission has treated as time bared.

So for the trading & investment, the DMAT account is compulsory. Several banks are functioning as D.P. participants. So the choice of D.P. can be selected by the individual. If the websites of NNDAL, CDSL searched, we can find the list of D.Ps.

The D.P and Broker are different. The broker is stock market member. He can do business on behalf of his clients in the sale and purchase of shares. But the D.P. will arrange the required account for arrange of shares. The ICICI, and H.D.F.C. banks have arranged independently separate wing for managing the D.Ps. These special wings will provide facility of one line trading to their clients. And they organize some DMAT accounts. We can check DMAT account to know about our shares sales and purchases transactions and the balances.