Now to pension plans; which are basically
tools for retirement planning. Policyholders make contributions over a period of time (or even a one-time contribution) to form a corpus. This corpus is used to generate regular income for policy holders from the retirement age. The pension plans are flexible, whereby income can be received either for a fixed tenure or till death. In the majority of cases, investors avail of tax rebates under section 88 in the range of 15 % to 30% of the premium paid during the year depending on the total income. Tax benefits are also offered when medical riders are added to the policy as per section 80 D.
Looking at taxation of returns, thankfully, the maturity proceeds (either claims or at the term end) of all insurance policies including bonuses are entirely tax-free. But single premium policies are exceptions whereby the proceeds on maturity cannot avail of any tax benefits as they are charged as capital gains tax. At the same time, while contributions to pension funds are deductible from gross total income, the proceeds from the scheme are fully taxable as income from other sources. Pension schemes differ from insurance products as far as taxability of returns is concerned.
Of late, one amongst the most prized attractions for investors are the ULIPs. They are not only an important source for saving on tax and covering risk, but also aim to match the equity market returns. Explains Amit Saxena, CEO, Planman Financial, “The money paid towards ULIPs is partly spent on the purchase of units of the plan, and the balance is allocated towards the insurance premium.” Your premiums are invested in a mutual fund type of investment instrument. Some plans additionally guarantee the capital invested in the form of premiums paid, reducing the risk associated usually with other forms of equity related investments. Even these investments are eligible for tax break under Section 80C of the Income Tax Act. The maximum eligible amount of investment under Section 80C is Rs.100,000. Under Section 10(10D) of the IT Act, even the maturity proceeds are tax-free. On another front, the Life Insurance Council, in order to encourage log term savings, has also sought exemptions on infrastructure bonds in ULIPs as they are directly channeled for infrastructure developments.
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Source : IIPM Editorial, 2008
tools for retirement planning. Policyholders make contributions over a period of time (or even a one-time contribution) to form a corpus. This corpus is used to generate regular income for policy holders from the retirement age. The pension plans are flexible, whereby income can be received either for a fixed tenure or till death. In the majority of cases, investors avail of tax rebates under section 88 in the range of 15 % to 30% of the premium paid during the year depending on the total income. Tax benefits are also offered when medical riders are added to the policy as per section 80 D.Looking at taxation of returns, thankfully, the maturity proceeds (either claims or at the term end) of all insurance policies including bonuses are entirely tax-free. But single premium policies are exceptions whereby the proceeds on maturity cannot avail of any tax benefits as they are charged as capital gains tax. At the same time, while contributions to pension funds are deductible from gross total income, the proceeds from the scheme are fully taxable as income from other sources. Pension schemes differ from insurance products as far as taxability of returns is concerned.
Of late, one amongst the most prized attractions for investors are the ULIPs. They are not only an important source for saving on tax and covering risk, but also aim to match the equity market returns. Explains Amit Saxena, CEO, Planman Financial, “The money paid towards ULIPs is partly spent on the purchase of units of the plan, and the balance is allocated towards the insurance premium.” Your premiums are invested in a mutual fund type of investment instrument. Some plans additionally guarantee the capital invested in the form of premiums paid, reducing the risk associated usually with other forms of equity related investments. Even these investments are eligible for tax break under Section 80C of the Income Tax Act. The maximum eligible amount of investment under Section 80C is Rs.100,000. Under Section 10(10D) of the IT Act, even the maturity proceeds are tax-free. On another front, the Life Insurance Council, in order to encourage log term savings, has also sought exemptions on infrastructure bonds in ULIPs as they are directly channeled for infrastructure developments.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
from the last 50 years, remains ever contemporary & evergreen. The punchline is same from such a long time because we have the same advertising agency, same people at the top and the same product positioning. I don’t understand why Bajaj changed their tagline from ‘Hamara Bajaj’ as there was no need to do so because it was working well for them. These things change when people in the top management change. The tagline has definitely helped us grow. Today, we are the number one food company in India & market shares are consistently improving. 
simply been mind-blowing and have only got bigger during the past two years! The reasons for the same are intensive asset utilisation (track, wagons, coaches, locos), increase in axle load, improvement in turn-round of wagons and also lowering of unit costs through higher volumes. The railways also used differentiated strategy for social and commercial segments of operation and a dynamic and market-driven tariff for freight and premium passenger segments. The railways also made the reduction of tariffs in real terms. The railways is also utilising its real estate to earn revenues. To begin with, it is roping-in real estate developers and utilising PPPs as part of its makeover plans. While the former are a part of the modernisation plan of 225 railway stations across the country, the PPPs focus will fund a major portion of the dedicated rail freight corridor and high speed passenger corridors. PPP options are also being explored to by holding auction for the private sector to build malls, cineplexes and shopping arcades. Finally, the PPPs will also help develop energy-efficient trains with the state-of-the-art facility & controlling.