Investment in ULIPs for tax deductions
Investment in ULIP is eligible for deduction under section 80C (life insurance) or 80CCC (pension) of Income Tax Act. A maximum of Rs 1,50,000 is allowed under section 80C/ 80CCC. ULIP is an integrated product of ‘insurance and investment’ developed and marketed by life insurance companies. ULIP offers investors the advantage of both insurance and…
Read article
What is a forward contract?
A forward contract is a privately negotiated agreement between two parties to buy or to sell an asset at a specified price on a future date. Under forward contract, there is an obligation for the buyer to pay for what has been bought and receive delivery thereof as per contract, and for the seller to give…
Read article
Things to know before buying life and non-life insurance policies
(This post explains various types of insurance policies available in the market like Life Insurance policies, Health insurance policies, Property Insurance policies including plant and machinery, boiler, shipping insurance, stock of goods, etc., and conditions and clauses to be verified by the buyers before buying them). For many average insurance policy buyers verifying conditions and…
Read article
WHAT IS AN ESCROW ACCOUNT?
Escrow account is an account placed in trust with a third party usually a bank to hold money which belongs to others. The release of money parked in escrow account will be dependent on conditions agreed to by the transacting parties. The Escrow services are offered to meet diverse requirements of clients that include Sale…
Read article
Difference between Gross NPA and Net NPA explained
[This article elucidates the gains of NPA recovery and the difference between Gross NPA and Net NPA] An asset (loan and advances of the bank) becomes non-performing asset (NPA) when it ceases to generate income for the bank. If interest and or installment of principal amount of loan remain ‘overdue’* for a period of more…
Implementation of Positive Confirmation for RTGS transactions
Up till now, NEFT system has been providing a positive confirmation to the remitter of the funds regarding completion of the funds transfer, thus giving an assurance to the remitter that the funds have been successfully credited to the beneficiary account. Now onwards same facility will be extended by the banks to the remitter of…
Read article