Finance News India

Bankruptcy in World Business

2009-06-28T00:58:00.000-07:00

In 2008 bankruptcy rates were far more than any time since 2005. Federal court made it tougher to file bankruptcy. According to AACER, over a million American filed for individual bankruptcy which is 325 higher and companies filing for bankruptcy rose to 50% with around 64000 bankruptcies filed by companies.

This data shows that rate of bankruptcy filling is again going same way as it was back in 2005 and before it. So it can be said that 2005 bank law was not effective to change the underlying economic condition.

Majority of bankruptcies are individual but it is mainly a small business failure. It is noticeable that whenever people file for personal bankruptcy because of debt in business then it is also classifieds as personal filings. So it is also a point that the court law didn’t made a clear distinction about which is which.

"For small businesses that are in trouble," said White, "Filing under chapter 7 is the way to go." White said that the 2005 bankruptcy reforms have an exception that allows small business owners to avoid a "means test" that could bar them from chapter 7.

Expert says that it is good to take advice before filing for bankruptcy. It is not good to file bankruptcy just to shed business debt.

Mukesh Ambani Lost Rs 32,574 Crore while Anil Ambani Gained Rs 3,438 Crore

2009-06-15T09:51:00.000-07:00

Today, in market capitalisation, companies led by Mukesh Ambani group lost Rs 32,754 crore while RNRL, Anil Ambani group firm gained Rs 3,438 Crore after the orders of Bombay High Court to RIL about supplying gas to ADAG firm at $ 2.34 per mmBtu.

The Mukesh Ambani group that includes Reliance Industries Ltd, Reliance Petroleum and Reliance Industrial Infrastructure Ltd lost this huge amount as stocks of all three companies settled with a loss of around 7%.

The total market capitalisation of Reliance Industries at the end of today's trading session stood at Rs 3.44 lakh crore which was Rs 3.71 lakh crore on June 12, Friday.

The orders of Bombay high court are major victory for Anil Ambani, when high court asked Mukesh Ambani's RIL to supply gas from KG Basin at USD 2.34 mmBtu to former's group firm.
This resulted in the increase of market capitalisation of RNRL from Rs 14,257 crore (as on Friday) to Rs 17, 694 Crore (today).

The other major gainers in the ADAG pack include Reliance Power which saw a gain of Rs 1,990 crore in its m-cap while, Reliance Infrastructure's m-cap surged by Rs 364.54 crore.
However, three other ADAG group firms-- Reliance Capital, Reliance Communications and Adlabs settled for in negative territory today and collectively lost Rs 3,365 crore.

According to Jagannadham Thunuguntla, SMC capital eqity head

"The positive momentum after the court ruling brought back encouragement to the ADAG pack. But if Reliance Industries goes to the Supreme Court it will start another long drawn battle. Keeping this in mind, the today's bull run in the ADAG pack looks short term"

Sensex raised to 14,500 mark after GDP data

2009-05-29T02:45:00.000-07:00

Friday morning proved very good for investors as BSE Sensex gains 2%. It is said that it is due to increased confidence of investors as economy of India grew at a higher rate than expected (5.8%)in March quarter.

Today at 11:35 A.M, BSE index was up by 2 % and reached at 14,286.27, with 28 stocks rising.

NSE index raise to 2.2 % and reached at 4,430.95.
This increase is an indication of investors confidence in market.

3 Ways to Save money on Health Insurance

2009-05-27T05:14:00.000-07:00

There are many things that you can do right now that will help you save hundreds and maybe even thousands of dollars a year on your health insurance bill. With just a little bit of research then you will be well on your way to finding cheap health insurance!

Here are some quick and easy things that you can try right now to help you find an affordable and comprehensive health insurance plan:

1. Consider a Health Savings Account – Health Savings Accounts (HSA’s) are tax advantaged accounts that give you comprehensive health insurance at a lower monthly premium cost and also allows you to take advantage of some very attractive tax benefits. HSA’s are comprised of two parts: the insurance part and the savings account part. The insurance element is comprehensive major medical coverage with no copays and typically no coinsurance. These types of plans have higher deductibles and in turn much lower monthly premiums. The savings account portion of the plan allows for a full above the line tax deduction for all money contributed into the savings account (up to IRS limits) and the money in the account grows tax free and comes out tax free so long as the distribution is used to pay for qualified medical expenses.

2. Consider CHIP – The Children’s Health Insurance Program (CHIP) is a Federally sponsored and state administered program to provide coverage for children whose parents are considered low income by the state. The program specifics differ from state to state but in most states if you have very low income then your children will be eligible for this type of coverage.

3. Comparison Shop – Health insurance rates change often. It is recommended that you should get a health insurance quote comparison from at least 3 different insurance companies every 6 months. Health insurance is much different than life insurance in that as long as you are healthy and you only choose insurance companies that are “A” rated or higher with comprehensive health insurance polices then it makes sense to switch policies quite often if you can find a cheaper rate.

Article Source: Free Debt Advisor

Plan and Pay your income tax on time and avoid last time rush

2009-05-21T23:00:00.000-07:00

As the last date to paying income tax return is round the corner, it is advisable that you should fill your income tax return on time to avoid any last time rush. Even if you are planning of some tax saving investment you should work on it earlier rather that on last time when they are needed to submit investment proofs. There are many peoples that think about these tax saving investment plans only in last quarter of the financial year.

Planning for income tax should be done as soon as possible to avoid any last time hasty decisions that are made blindly to save income tax without investigating about the future of investment plan.

Most financial expert advise to plan for tax saving at the starting of financial year. This helps you to learn about the various investment options and decide about one best suited to your needs. April is a good time for this.

One more thing that is always advisable by expert is to take tax planning as financial planning. It must not be done only to save taxes but it must be some beneficial investment to cover your future needs.

There are many option that you can use to save your taxes. Some risk free investment options are Life Insurance, National Saving Certificates, and Bank Deposits.
While selecting a tax saving plan one should evaluate salary components and then start investing only after adjusting other expenses such as provident fund, HRA and conveyance etc. It is good to take help of professional financial consultant or chartered accountant while working on tax planing.

Stx surge forces India funds to decline transactions

2009-05-21T02:01:00.000-07:00

The Association of Mutual Funds in India (AMFI) has asked money managers to declare Monday a non business day and not honour sale or redemption requests given a surge in stocks that lead to a trading halt, officials said.

"In view of the market remaining closed for the major part of today, May 18, 2009, and many scrips not getting traded during the day, we recommend that May 18, 2009 be treated as a non-working day for equity and hybrid schemes," a fund official said reading out a note sent by the AMFI.

He refused to be named as he was not authorised to share the details of the AMFI letter.

The AMFI chairman could not be reached for comment.

The Indian mutual fund unit of Franklin Templeton has posted a note on its web site declaring Monday a non-business day.

Indian shares jumped more than 17 percent on Monday, the first trading day after India voted to power a Congress-led government, shorn of Left allies, with a decisive mandate, on hopes of a revival in reforms and foreign investment.
Source: Reuters India

DLF to pay Income Tax on additional 1,200 Crore Taxable Income

2009-05-19T23:32:00.000-07:00

Income Tax department of India has found additional Rs. 1,200 Crore taxable income in accounts of Real Estate Gaint of India, DLF Limited. IT department after a special investigation, issued DLF limited a directive in this regard. This investigation was done for FY 2006 account books.

Even after DLF challenges the order by approaching appellate authorities, it still round off to 300-400 crores as added income tax for the year 2005-2006.

This audition of DLF's income for financial year 2005-2006 is a fallout of special audit report of Income Tax Department. Actually in 2006, there was a change in accounting rules for construction and real estate development companies. In this change, the “complete contract method” was changed to “percentage of completion method (PoCM)” recommended by Institution of Chartered Accounts. This implied recognition of revenue vis-à-vis the progress in construction.

DLF mentioned in its statement to Stock Exchange, that they plans to challenge the order of Income Tax Department about additional tax. Their statement was:

"The company has got an expert opinion on the enhanced taxable income and is confident that this addition will not be sustained by the appellate authorities. In an unlikely event, if the said order is not reversed by the appellate authorities, then it can result in a contingent liability of about Rs 300 to Rs 400 crore."

Christian Debt Consolidation

2009-05-19T01:35:00.000-07:00

Sometimes it is too easy to declare bankruptcy believing it can be the best solution to our debt problems, especially, if they appear insurmountable. It is not however an easy option and carries some serious consequences which are often not fully explained. In this Christian Debt Consolidation Guide article we will attempt to provide some really practical information on bankruptcy but please, please never act in this area without taking professional advice.

There are basically two types of bankruptcy from which to choose:

Christian Debt Consolidation Guide - Chapter 7 Bankruptcy

Under Chapter 7 we are effectively asking the court to forgive all our debts. We are required to surrender all of our assets that are not exempt (this varies from state to state). Exempt property will usually include some home furnishings and the tools of our trade. A court appointed trustee will handle this process.

Filing for Chapter 7 Bankruptcy ends any wage garnishments and the harassment from debt collectors. It is however an emotionally charged experience. The appointed trustee screens all of our transactions for an extended period of time. This is pretty humbling often accompanied by feelings of failure so support from our Church can be very comforting.

Christian Debt Consolidation Guide - Chapter 13 Bankruptcy

Under Chapter 13 we may keep a mortgaged house and car and rather than surrendering all assets we look to pay off debts over a typical 3 to 5 year period.

The court will determine our monthly disposable income and this amount is handed over to the court appointed trustee who in turn allocates the amount to our creditors.

At the end of the term any remaining debts are usually discharged. This may sound a better option than Chapter 7 Bankruptcy but again each case has to be examined on it's own merits. We all have unique situations and the most appropriate choice (which may not be bankruptcy) will vary according to many different criteria.

I have to be honest and say that filing for bankruptcy should be considered as the option of last resort as the consequences are far reaching. There are other options such as Christian Debt Consolidation, Christian Debt Management Plans, Christian Credit Counseling and Christian Debt Settlement to name some.

Bankruptcy affects our credit report for between 7 & 10 years and even after this period of time we can still experience difficulties if we are looking to obtain new loans or credit.

If this article achieves anything it is to encourage Christians to explore every option to solving debt problems. That's why, again and again it is recommended that professional advice is sought from a firm willing to explore all the options. Don't believe all the advertising hype suggesting one solution will solve all your problems. It takes a combination of many and all of our needs are unique.

Please let Bankruptcy be the option of last resort and only if recommended by a Christian Debt Consolidation Counselor. To do otherwise could leave you with increased debts and an even more intolerable situation.

For more information please visit the Christian Debt Consolidation Guide. This is an information only website providing independent and unbiased views. We do not provide Christian Debt Consolidation Services just a good education.

Acceptable Credit Score For Home Loans

2009-05-19T00:42:00.000-07:00

Many times due some delays in paying our bills or the credit card payments, we have a bad credit score. Some have has this problem to the extent that they had to file bankruptcy to save them selves. Now these people have a tough time applying for home loans and FHA loans. There are three major agencies that allot credit scores in the US. On the top of them all is FICO.

What is FICO score?

Fair Isaac Corporation (FICO) assigns score between 300 and 850 to the person that describes his / her credit worthiness. That is the FICO score. This score would decide the rate of interest you will have to pay on any credit or loan. The higher the score, the more is your credit worthiness. Hence you shall land up paying less. And the reversal of this applies for the bad scorers.

What is the minimum FICO credit score requirement to get a mortgage loan?

One thing you must understand is that there are no preset rules in this regard. Basically there are some thumb rules that guide such applications. Nothing here is hard & fast. Various loan programs require different levels of minimum acceptable credit scores. When it comes to home loans at the end it is the mortgage company's own wish if they want to give you the loan or not.

VA or FHA loans = 580 or more
USDA loans = 620 or more
Conventional loans = 720 or more

On an average, the persons who are above 620 in their score do not have much difficulty. It won't be wrong to say that it is a safe limit and one should try never to fall below that.

Do I have any ray of hope to a home loan?

With the new Stimulus Package, the Federal Government is giving out FHA loans and VA loans quite liberally. They understand that people are going through a tough time and having low credit scores is quite understandable. The new law has not set any minimal acceptable credit score. So you can actually get lucky and get a loan. For this you may contact the counselors appointed by US Federal Housing & Urban Development (HUD) Department.

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Debt Management Options For You

2009-05-19T00:38:00.000-07:00

A variety of debt management options do exist and these options are in fact dependent upon each and everyone's unique circumstances and debt related position within a given time. The options range from issues such as credit repairing, to debt consolidation or even outsourced management, to name but a few.

In selecting which debt management options are right for you, you would have to consider the exact situation in which you find yourself, with respect to the amount of debt that you currently have, as well as access to possible resources, if you are considering consolidation as a debt management option.

To start off with one of the more controversial mechanisms of debt management options, a closer look at consolidation of your debts has been the source of debate for quite a while. This is largely due to the way in which people exercise this debt management option. It can however work out more beneficial than not if done correctly. Basically to ensure success of this debt management option you would essentially require two main important factors. The first being self discipline, in other words not going out and incurring additional debts after you have consolidated all your outstanding amounts, as well as a favorable interest rate on your new loan account.

This consolidation process must be calculated properly before undertaking the consolidation and in brief the process involves calculating your total repayments over the given periods of your current debt arrangement versus that of the new arrangement under your consolidation loan. Obviously the least amount that is to be repaid in terms of capital and interest is the better route to follow in terms of the debt management options.

If you are lacking the discipline or cannot access a suitable interest rate and related loan, then you may want to look for a professional firm that can handle this process as one of the possible debt management options. This can arise due to a lack of available time to manage your own personal affairs or even the lack of proper knowledge in getting the best possible solution in terms of debt management options available.

Additional issues that touch on the sound management of debt, beyond that of disciplined repayments and communication with your creditors are issues such as credit scores and ratings. This is due to the fact that these very repayments affect your credit score and can negatively impact your credit rating if not conducted properly. These aspects can have far reaching effects on one's personal life too.

Debt management options vary according to individual circumstances, and the best possible start for anyone considering a potential option is to realize what exact debts they have in terms of their personal lives and make informed decisions, based upon their current positions.

For information on Debt Management or even Debt Management and Credit Counseling pop along to http://sheddebt.net

How to Write Off Credit Card Debt

2009-05-18T23:02:00.000-07:00

There are many ways to write off credit card debt legally. These can be divided into two broad types: writing off the debt because the original credit agreement was not properly drafted according to the various U.K. laws which are designed to protect consumer; and writing off the debt as part of an instrument such as an Individual Voluntary Arrangement (IVA).

These are two equally powerful and perfectly lawful actions that anyone can take to write off their credit card debt legally. The first is as lawful as the second, although it has been subject to a lot of derision in the media recently because of vested interest in the banks. Furthermore, these two types of action may be used together to dramatic effect in wiping out individual debt until it is a small fraction of the original amount owed. Then that amount is paid off over a number of years.

So let's take the first type of action by which you can write off credit card debt legally. This is where you check that the original contract was properly drafted. When the Consumer Credit Act of 1974 was amended in 2006 it had a section taken out which ensured that any credit agreement signed before 6th April 2007 (not an arbitrary date, but the first day of the financial year immediately following) had to include certain details known as the prescribed terms written into the contract. These included the size of the loan or agreed credit limit in the case of credit cards, the interest rate and other metrics related to the credit agreement. It also had to be signed.

You start the ball rolling here by asking the lender (or the owner of the debt, if it has defaulted and has been bought by a debt purchasing company) for a fair copy of the original credit agreement. Here is where debt purchasers usually fall at the first hurdle, as most debts bought by debt purchasing companies are bought in bundles or job lots, with little or no regard for the necessities of accompanying legal documentation. These firms buy debts at a fraction of what they were originally worth and try to convince you to give them the full amount of the original sum. They don't generally care about the paperwork.

If they can't produce the original document then the debt becomes unenforceable and you've won. Not even a court could enforce recovery of it. But if the original credit agreement is produced and you have access to a copy then you can scrutinize this to see if it contains the prescribed terms. If it does not contain ALL of the prescribed terms then again the debt is unenforceable, and again you have won.

The second way you can write off credit card debt legally is to take out an IVA, as described above. A qualified insolvency practitioner will help you with this, and will work out your income and expenditure. S/he will then come to an agreement with your creditors and the bulk of the debt will be written off (sometimes as much as 75%, although claims you see in adverts of 90% are ridiculous) and you will then be left with a structured settlement which you will pay off over five years (six in Scotland, where it is known as a Protected Trust Deed).

When used together as a means to write off credit card debt legally, you may indeed reduce your debt to around 10% of the original (this may well be where the above mentioned crazy claims come from, but they're just not telling you the full story), but only if you use both perfectly lawful procedures.

If you wish to drastically write off your credit card debt legally then visit Write Off Credit Card Debt and download the free information pack and/or make an appointment for an informal chat on the phone at any time you choose.

Credit Card Debt Reduction Ideas

2009-05-18T23:00:00.000-07:00

In the mainstream world of today, credit card debt has become a household bill that many people think of as a normal bill. Most people who are paying credit card debt off need to focus their efforts with more forethought. For instance, obtaining a low interest loan from a commercial bank and paying off a high interest credit card would definitely save money.

A lot of debtors don't realize that they can obtain lower interest rates from anything other than a home equity loan. Most banks today offer short term loans to persons with good to average credit scores who have current checking or savings accounts with their institution.

Another easily overlooked way for credit card debt reduction is through your company sponsored 401k or savings plan. Money from these accounts can be taken out, pay off the credit card, and then pay the same amount you would have paid the credit card to yourself, in addition to the normal amount you would contribute. This can benefit you in the long run, even though you will have to pay additional taxes in the year you initially "borrowed" the money from your tax deferred plan.

If you contribute the amount you normally did previously, plus the payment amount you were paying to your credit card company, your taxable income will be reduced, and as a result, you may actually bring home more or at least the same amount as you previously did.

Now if you then apply this "extra" toward after tax 401k to reduce your "borrowed" amount as well, you end up paying yourself interest instead of paying it to a credit card company. There are tax laws for every income level regarding this and each situation is different from individual to individual. Your situation should therefore be evaluated to determine the financial impact this solution to credit card debt reduction could make on your individual circumstances.

Perhaps the simplest solution, yet the hardest to do is to sit down and create a budget, that allows for paying off the debt, not just the interest, and then stick to that budget. Each month that you pay extra on the principal cuts down on the length of time it takes you to pay off the entire debt, and by extension will reduce the total amount you repay..

Taking the time to research these methods of credit card debt reduction could mean a big payoff for you and your family.

IDBI Bank reduces deposit rates by 0.5-1 pct

2009-05-18T21:43:00.000-07:00

State-run, IDBI Bank slashed its deposit rates by 0.5-1 per cent effective from May 21.
Deposits, below Rs 15-lakh, having a maturity of 1 year-2 years will now carry a rate of 7.5 per cent as against 8 per cent earlier, while those having a 2 years-less than 1,100 days tenure, will offer 7.75 per cent (8.25 per cent), a press release said.
Also, interest rate for 1,100-days deposits has been revised to 8 per cent (8.5 per cent) and rate for 1,100-days-5 years has been reduced to 7.75 per cent (8.25 per cent), the release said.
Rate for 15-45 days maturity deposits to 3.25 per cent (4.25 per cent) and that for 46-90 days maturity to 4.25 per cent (5.25), it said.
Similarly, interest rate for 5 years-10 years deposits has been cut to 8.25 per cent (8.75 per cent).
IDBI Bank has also trimmed the rates for deposits above Rs 15-lakh and upto Rs 1 crore in the above maturities.

Financial Express

Income Tax Return In India

2009-05-17T21:52:00.000-07:00

Income tax return is important for every citizen of India who is above a prescribed yearly limit of earnings. By filling Income tax return an individual process for paying his tax to Income Tax Department of India. According to Income Tax Act of 1961, income tax return filing is necessary for every Indian, whose income exceeds the maximum limit of non-taxable income for a financial year. This financial years is taken from 01 April to March 31 of next year.

For salaried class it is necessary to fill form 16 which is the the certificate for tax deducted at source. It is issued by the employer at the end of financial year. Now a days you can easily fill your income tax return online. So there is no need to wait in long queues. Official site of Income Tax Department of India has started its online operations to help people. Filing income tax return online offers great convenience, fast processing and hassle free process.

Interview with Investment Guru: Warren Buffet

2009-05-15T05:46:00.000-07:00

What Happens to Your Credit If You Do Debt Consolidation?

2009-05-15T00:29:00.000-07:00

With a debt consolidation program all the debts are combined in one payment, with a fixed low interest rate. This allows the debts to be more manageable and can be paid off much faster. Once you are enrolled in the program, you will be responsible for making your payment on time, just as you normally would do in the past. Once the money is paid through the consolidation company, they will distribute the payment to each creditor.

Debt consolidation can have a negative impact on your credit score temporarily, due to the fact that the credit card accounts will show as being closed, on your credit report. If you are considering applying for a loan, this would not be a good time to enroll in the program. Based on the information that will be showing on your report, you may get denied for the loan or get a high interest rate. However, once you start making your monthly payments, it will start to reflect positively on your credit report, causing your scoring to increase gradually. The good thing about this program is that you will eventually be able to restore your credit, by paying off your debt in a much shorter period of time.

Without this program, consider how much money you would be spending each month on finance charges. Instead, you will be saving hundreds of dollars each year, and with each payment, continue to reach one step closer to financial freedom. Most credit cards have high interest rates on them, making it almost impossible to pay off these debts. Making the decision to enroll in Debt consolidation program, is a great step towards financial freedom. A temporary drop in credit score is a small price to pay for a debt fee future.

By the way, by researching and comparing the best debt consolidation companies in the market, you will be able to determine the one that meet your specific financial situation, plus the cheaper interest rates offered. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.

Hector Milla runs the Best Debt Consolidation Company website - where you can see his best rated debt consolidation company recommendation.

Visit for further information and read our full review of the best debt consolidation service, plus articles and video training about how to get the most of your debt consolidation process.

Credit Cards Interest Rates: Amazing Discussion

2009-05-15T00:18:00.000-07:00

According to Reagan's act of 1986, credit card interest which was tax-deductible before, removed that deduction from consumer loans except mortgage. At the time credit card interest rates were 19% approximately. This step fueled credit cards business. To have people continue to use cards without being able to deduct the interest they'd paid, issuers would have to lower the interest rates. So that's how we got down to the relatively low rates we've had for a couple of decades now. This caused deduction in credit card interest rates from rates that were some decades ago.

But there is a question that what if a tax deduction for credit card interest paid was allowed for some years, say, five years? Would then people pay off their cards or will increase using them. According to expert, it will result in more use of credit cards. Reason behind this is that they are really not paying the interest because they're deducting it in April.

Some people think that government should allow interest to be deducted to help people get out of debt faster. On the opposite side some says that interest deduction would encourage consumers to spend again.

Manage your Credit Card Wisely!

2009-05-14T00:37:00.000-07:00

Although Credit Cards are convenient to make purchase but it is becoming hard to manage credit card bills in current time of recession.

Current Global Financial crisis had an significant impact over the credit card industry and thereby made the situations worse for both the issuers and the customers. Credit card sector has faced increased number of delinquencies in the recent past. So to lower their risks credit card companies are now making their eligibility criteria very tough. Reducing or withdrawing the credit card free period is one of these steps. They are also increasing the interest rates on the credit borrowed.

Banks are deducting money from saving accounts of persons if they have credit card with that particular bank. All this is been done to avoid the defaults that have been rising after the crisis.

So under such a situation it is very important to manage the credit card properly before one falls into a debt that gets out of control.

ICICI Bank in pact with Visa in US

2009-05-14T00:04:00.000-07:00

India's second largest lender ICICI Bank has signed an agreement with Visa to distribute debit cards in the United States.

According to this agreement between ICICI and VISA, New York branch of ICICI Bank's will issue Visa debit cards to its Global accounts in India and other checking account customers. This has been revelaed in a press release in Mumbai.

According to G V S Ramesh, US Branch Head of ICICI Bank: “Visa has an unmatched suite of payment products that allows our customers to pay securely and conveniently for every type of purchase”.

Indians moving overseas can avail the facility of banking from their Global Indian Account. They can also access local banking facilites in US.

The account provides customers with simultaneous access to a USD checking account at the bank's New York branch for their use in the US and a Rupee NRE account at ICICI Bank for use in India, the release said.

ICICI Bank opened its first branch at New York in March in midtown Manhattan in 2008.