How to opt out of the HDFC Bank Preferred Banking Programme

HDFC bank uses underhand tactics which are unethical, to boost its revenue and to extract money from its account holders.

  1. Search –  Welcome to HDFC Bank Preferred Banking Programme! in ur email
  2. open that email
  3. Opt out of that program
  4. write an email to and to ur RM and to ur bank manager.

u can also write a letter in duplicate and get a stamped copy if they dont comply .




Sec 80 C Options At a Glance – Fixed Income

Fixed Income Tax savings options under Sec 80C for all

For table 1 pf postal investments the rates are for current yr and next yr as there is downward revision

For 5 Yr Tax savings  Fds from banks the first rate is regular and second is senior citizen rate

RATE % 9.3 / 9.2 8.8 / 8.7 8.6 / 8.5 8.5
TENURE (Yrs) 5 15+ 5… 5 5
MAX LIMIT Rs 1500000 100000 NO LIMIT 4.5 / 9 L
RATE % 9 / 9.75 8.75 / 9.5 8.75/ 9 9 / 9.5
RATE % 9.25 / 9.85 9

India Budget 2013 What matters most!

P Chidambaram budget speech is  known to induce dreams and elevate people to a euphoric state of mind but the fine print in the draft is known to always have a googly and take back more than what he has given…

This budget is insipid and worse it is subtly populist mainly to avoid a ratings downgrade and there is a big risk that the govt will bring in the populist measures like Food security act on the sly once it makes up its mind on going for elections. The budget does not seriously address concerns regarding pathetic growth and stagflation or the twin deficits that the Indian economy currently suffers from. The numbers are also suspect. Read MB , Read BDRead LM

The govt has already taxed us with High INFLATION which is well above 10.0% and Huge increase in Money Supply, both of which have increased price of gold and housing by 4 to 5 times during the current MMS /Sonia Congress/ UPA 1 &2 govt tenure.

This Budget has given a raw deal to the local Investor class. Equity IPOs , Government IPOs FPOs etc have given a huge negative returns . Equity & Debt  Mutual funds and fixed deposits have given negative returns post inflation in 5 yr period.


INDIVIDUALS: Upto 2,00,000 – Nil

INDIVIDUAL RESIDENTS 60 TO 80 Yrs: Upto 2,50,000 – Nil

INDIVIDUAL RESIDENTS 80 Yrs +: Upto 500,000 – Nil


I. Upto 5,00,0000  {10% of the amount exceeding Tax free Income}

II. Upto 10,00,000 –  {I + 20% of the amount over 500000}

III. Above 10,00,000 –  {I + II + 30% of the amount over 1000000}

Tax Credit of Rs 2000 for income upto Rs 500000

Surcharge of 10% on persons with income of over Rs one crore

Dividend Distribution Tax: Surcharge on Dividend Distribution Tax has gone up from 5% to 10%. This has an implication on those is the dividend mode in Debt MF schemes. They will not pay 14.16%, instead of 13.52%. Not much of an implication, though the net dividend would now be lower now.

Securities Transaction Tax The STT on MF/ETF done with the fund houses has been reduced from 0.25% to 0.001%. Similarly the STT on MF/ETF transaction done on the exchange, only the seller will need to pay STT of 0.001%. Again, from an individual investor view point, this may not be very significant as the percentages before and after as both low.

Commodities transaction tax on non-agriculture commodities futures contracts at the same rate as equity futures that is 0.01 per cent of the price of the trade

Investment and Deductions

  • First-time home loans up to Rs.25 lakhs  get extra Rs.1 lakh interest deduction (if not exhausted, the balance limit can be claimed next year)
  • Inflation-indexed Bonds and National Security Certificate to be introduced
  • Investment in RGESS need not be done in 1 year alone but can be done in 3 successive years. Income limit under RGESS raised from Rs.10 lakhs to Rs.12 lakhs
  • Surcharge on Dividend Distribution Tax increased from 5% to 10%. So it may be prudent to consider taking the returns in the form of capital gains if it works out better depending on one’s tax bracket
  • Reduction in STT on equity and MFs
  • Passengers will be allowed to bring in duty free gold jewellery of up to Rs 50,000 in case of men and Rs 1,00,000 in case of women.


What goes up
Cigarettes, Cigars, Cheroots, High-end mobile phones,Imported luxury cars, High-end motor vehicles, Sports Utility Vehicles,Imported yatch and motorboats, Marbles for flooring, Set-top boxes, Dining in air conditioned restaurants, Silk clothes, Homes and flats, Parking fees.

What goes Down
Jewellery, Precious stones, Cotton garments,Branded apparels, Carpets, Textile floor, Agricultural testing procedures, Imported hazel nuts, Dehulled oat grain, Truck chasis, Sabudana, Ships and vessels, Cinema and films, Machinery for manufacturing of leather goods


  • Investment Allowance of 15% for investment in plant & machinery exceeding Rs.100 crore will boost capital expenditure
  • Surcharge increased from 5% to 10% for companies with Rs.10 crore or more taxable income
  • Amnesty Scheme for Service Tax defaulters
  • No change in the peak rate of basic customs duty on non-agriculture products and rates of excise duty and service tax of 12 per cent.

 Inputs from Moneycontrol and ET

The Vadra-DLF Tagle

RTI / IAC activist and  Ramon Magsaysay Award winner, Ex IRS turned politician Arvind Kejriwal… has exposed the tangle between DLF and Robert Vadra in his recent expose.

Simple question here is why did DLF a company neck deep in debt having a debt: equity ratio of close to 1:1, doing a fire sale of assets to reduce debt on its highly leveraged balance sheet give Vadra interest free debt be it a loan or an advance?

Direct Involvement:

1. DLF  2. Robert Vadra, the fastest Indian billionaire in recent times with an estimated net worth of a staggering $2.1 Billion, husband of Priyanka Vadra , daughter of Sonia Gandhi and a member of the Nehru-Gandhi family by marriage.

Robert Shares the directorship with his mother Maureen,  others in his family died either by accident or by suicide. Strangely.. his wife Priyanka Vadra has no stake in his companies , which if not sexist is nothing but ring-fencing the brahmastra of Congress.

Indirect Involvement (Nepotism angle)(Crony Capitalism angle):

1. IndiRan National Congress, State and Central Govts and their govt machinery. 2. PSU Banks that provided Loans to DLF and Vadra. 3. Sonia Gandhi and Priyanka Vadra.

Read Hindu: Attack on Vadra is attack on party: Congress

Now Robert Vadra is no ordinary man or aam admi as he first claimed, and being the son in law of the first family of Indian politics has loads of perks. He is a special person or khass admi, as he is exempted from airport security checks , a privilege reserved for President, Vice President, Prime Minister, former presidents, former vice-presidents, Speaker of the Lok Sabha, Chief Justice of India etc … Read this

The SPG Act is a draconian law passed by Indira Gandhi and he is a Special Case as per Mr P Chidambaram in a reply to an RTI Query by a team member of  Avnish Singhs RTI Anonymous.

This news is not new, it was a tad bit stale… but no media house or political party risked itself or its sweat heart deals or its fortunes by exposing the nepotism in the system fearing loss of business, exposure of skeletons in cupboard, the full force of govt machinery DRI CBI etc.. you get the drift!

Robert Vadra posted a message on his Facebook account which read: “Mango people in banana republic.” before closing it.

Read about the Real Estate Bubble and PSU Banks

Value Research: The Realty Bubble 

Vox : Housing bubbles and interest rates

DNA/ Ajit Dayal Are the banks keeping property prices up?

PKDEY: PSU bank loans to realty cos up

Moneylife/Sucheta D: Public sector banks – Loans turning bad

Read about the DLF Vadra Nexus. 

Moneylife/Sucheta D: Kejriwal asks for white paper, SIT probe into Haryana government, DLF and Robert Vadra nexus

FP  Politicians and real estate: Why are we missing the big picture?

Look closely at all the Robert Vadras of Indian politics

Kejriwal breaks ‘Omerta Code’ on DLF-Vadra ‘sweetheart deal’

Plot thickens: Vadra, DLF, and a ‘smoking gun’ of sorts…

Haryana govt is DLF’s agent: Kejriwal’s 5 big allegations

DLF borrows money at 12.38%; lends free to Vadra

Auditors too think DLF and Vadra may have lied about the ‘advance’

 Of course, Robert Vadra is right! We are a ‘banana republic’

BS Vadra: ‘A little help from my friends’

Mutual Funds to cost more?

If regular CPI inflation is not enough be prepared to get lesser returns for the money you have in your mutual funds.

Recently the MF industry had pitched for raising expense ratio, which includes administrative fee and marketing cost, by 25 basis points. Besides, they also made a case for doing away with the sub-ceilings under the expense ratio and pass on the burden of 12 per cent service tax to investors. The govt plans to accept most of the recommendations of the Industry.

So your costs will go up .25% directly, add 12% on whatever the funds charge you.

As things stand the charge structure is non transparent and is not properly conveyed to the investor. Caclub has a good post on Mutual Fund charges.

This is directly punishing the direct investor, because he doesn’t get any commission but lands up subsidizing the investor who uses the services of an agent…

This govt loves to complicate things instead of going back to the good old system of entry load.

All this would be fine if most mutual funds gave a decent return .. but the true picture is far from appealing as most funds have given negative returns over the last two years.

Your only solace will be that you have most likely done better than those that invested in insurance ulip products where the commissions are even much higher.

Pitfalls for the Indian Investor

When a govt is so desperate for capital it could do something to make life for the average Indian Investor a little easier , but this govt like the ones before is making life hell for the average investor with one half baked norm/rule/idea  after another.


Debashis Basu: Stories from Indian savers

Capital Calculus | Anil Padmanabhan : Will UPA seize the moment?

As this govt goes back in time … ie Sonia apes Indira`s disastrous policy, and the FM replicates policy that existed in his first term as FM during Indiras tenure as PM, the markets have tanked.

Govt to deliberate tax measures as investors fret

Then again Indians are smart .. no wonder they show no confidence in this govt by investing in GOLD … and why not ? it is already up 30% yoy, whether the govt and fm taxes it or not!

Mixing Political Interests with National Interests – The big PSU Scam !

Samuel Johnson made this famous pronouncement that patriotism is the last refuge of a scoundrel on the evening of April 7, 1775

The favourite hobby of UPA politicians is to justify decisions made for their narrow Political Interests as National Interests, and benefit handsomely from this.

Take the 3G scam… Can anyone believe that only Mr. Raja benefited from it?

Every Indian knows that politicians take cuts … what they detest is the fact that even after taking cuts these politicians cant get the work done, so much so that they are ready to forgive if they see tangible on ground benefits . Take the case of the Late Pramod Mahajan, a witty minister with dealings with Reliance Tele, who ushered in the telecom revolution, which cut per call rate from Rs 20 /Rs 16 to Rs 1.

Currently the Congress UPA is playing the National Interests card to rob the taxpayer, the average citizen and moreso the small shareholders of multiple navratna PSUs and  the policyholders of multiple psus like the Life Insurance Corp of India, which has now become the unofficial bailout mechanism for the disinvestment ministry.

Thankfully activist foreign funds that have invested in such firms, who have nothing to loose, are taking on such company managements and the government, a luxury most Indians cannot afford as they fear the draconian enforcement establishment and harassment mechanism the govt operates.

The Children’s Investment Fund (TCI)  will file a legal suit against Coal India’s board in the next two weeks in additional to the law suit against the government of India under the UK-Indian bilateral treaty.

The nononsense CIO of TCF Chris Hohn added:

The only relevant thing will be the public interest. There is a concept of the rule of law, which is that nobody, including the government, is above the law.
So, if the government advertised that they wanted to give away 2G licences to telecoms for free, that’s not legal. Even if they put it in the prospectus, even if they tell everybody, it’s not legal. Our legal case will revolve around public interest.

Sooner or later the people of India will realise that the system is ripping them off and benefiting only a handful of wealthy industrialists. We think that FSA coal pricing system is encouraging massive corruption within India.

This video is worth watching…

India Union Budget 2012/13 What matters most!

Thanks to the total failure of the UPA 2 Govt to govern, the problems i had talked about  in India Budget 2011/12 What matters most! have only worsened.

Fiscal defect is 1.3% higher than estimate… Wow!!  something which will have to be funded by market borrowing. Reduction of Inflation due to base effect offers little relief to the aam admi who is finding the burden unbearable.

Indians are facing deeply entrenched inflation, tight liquidity, high interest rate, industrial slowdown, zero reforms and negative market sentiment that have lead to Stagflation for the last few months, something which will worsen in the coming months if govt doesn’t get its act together.

Pronob is known as the chief troubleshooter and problem fixer of the Congress upa govt …  and this seems to be  reflected in his budget.


Income upto 2 lakhs                          Tax payable   Nil
Income upto 2.5 lakhs                      Tax payable   Nil for Senior citizens 60 yrs and above
Income 2 lakhs to 5 lakhs                Tax payable  10%
Income 5 lakhs to 10 lakhs             Tax payable  20%
Income above 10 lakhs                    Tax payable  30%

Senior Citizens with no biz income freed from advance tax burden

10,000 bank interest tax-free. (Old Sec 80L revived)

Cost of preventive health checkup upto a limit of Rs 5000 permitted U/s 80D.

New Adult Duty free goods limit is Rs 35000/- , for Child upto 10yrs  Rs 15000/-

Sale of residential property exempted from capital gains if invested in equity or equipment of an SME.

Disappointment for lower and middle middle class with income upto 5/6 lakh who face a double whammy of the biggest tax i.e. high Inflation and overall higher prices due to increase in fuel prices, customs duties and service taxes . Increase in the tax free income far to low and should have been at-least Rs 2.5 Lakhs considering inflation. 

Financial Responsibility and Subsidy Reform Proposals

Fiscal deficit in 2011/12 revised to 5.9% of GDP from 4.6% of earlier target.

Fiscal defict 2012/13 to be at 5.1%

FY 13 net market borrowing at Rs 4.8 lakh crores

Gross tax at 10.6% of GDP

GDP expected to grow at 6.9%

Current account defict to be at 3.6%

Economy to grow at 7.6% in 2012/13

Central subsidies to be under 2% of GDP

To bring down subsidy to 1.7 % of GDP in the next 3 years

To roll out computerized scheme for fertilizer subsidy transfer

Direct transfer of subsidy for kerosene initiated

Pay market rate for LPG Cylinder, direct transfer of subsidy for  LPG

Remove bottlenecks in agriculture, energy, transport, coal, power and national highways

To become self sufficient in urea production in next 5 years

How credible are the numbers ? Taking into consideration the pathetic track record of the UPA  can one sincerely believe in the estimates especially on govt borrowings ?  Fuel subsidy allocation not realistic.

All talk and repetition of promises, but no real concrete action on fiscal consolidation or dealing with burgeoning subsidy. No action on dealing with supply side issues only repetition of promises. No vision to change the spending pattern from consumption to investment.

Reform Postponed

DTC implementation deferred for one more year

GST to be operational by August 2012

White paper on Black Money

Capital and Debt Markets Proposals

 STT on delivery cut to 0.1% from 0.25%. 

Rs 30,000 cr divestment target in FY 13

PAN for identification of Investors and tracking evasion.

Central KYC database.

Rajiv Gandhi Equity (Tax Exemption) Savings Scheme with a lock in of 3yrs for new investors investing Rs 50000 on income below 10 Lakhs.

Change in IPO guidelines to promote small town participation

Recapitalization of PSU banks

Rs 10000 crore of tax fee bonds for power sector

Will allow external commercial borrowing for power, housing road construction companies

Govt doubles allocation for tax-free bonds to Rs 60,000 crore for financing infrastructure projects in 2012/13

To allow qualified foreign investors in Indian corporate debt markets

Dull/drab and a major disappointment to market participants,  I doubt if two bit schemes like Rajiv ESS will revive the govt disinvestment program which is in doldrums. All said and done people have to make money out of govt IPOs and tax exemption with a 3 yr lock-in is meaningless .

Fact:  1 yr plus return on govt IPOs: Punjab n Sind bank -31%   SCI FPO -50% SJVN -20% PTC finance -43.5% MOIL -26.5%  Equity / Large cap MFs 1 year return are negative.  Gold ETF has returned +29%  that after the cool off in gold prices.

Indirect Tax Proposals

Service tax,  Excise duty now 12% up 2%

GOLD bar duty doubled, increased to 4% and 10%

Negative list for Service tax introduced .

All services will be taxed except those in a 17-item negative list including  Govt services, school education, renting of residences, public transport, animal husbandry, agri produce. Healthcare, charities, sportsmen, car-parking are exempt.

Cost of everything will go up by 4 to 5% as businesses pass on the hikes…Gold , Cigarettes, bidis, Diamonds, bicycles, luxury items, eating out, white goods like AC and fridges. Even telephone bills are set to get more expensive.

Hiking duties on gold is a desperate attempt by a govt to curb investment in gold. This will make little difference in gold demand or asset price inflation if the govt cant curb its rash spending and resulting inflation expectations especially when EU and US are in low interest rate and QE mode and markets give sustained negative returns and an investor tries to protect his capital. 

All in all this budget hits the lower middle class and is most inflationary especially for the middle to lower middle class single income multiple kids household with an income of 2 lakh who sees no benefit from income tax rebate but has to pay double for his gas cylinder and between 2% to 5% more on every good and service from telephone to food to branded items.

MCX IPO Update

MCX IPO is about to set a record in terms of demand.. Over subscription is .. appx 43 times as of now. These are Approx figures and i cant confirm full details or my source…

QIB portion 41 times +

HNI 119+


Do i worry cause Emp is only .16%

Total OS  is heading to 50 times

This party shows me the lack of good investing avenues for retail investors and worrys me as to how bad the investment climate is overall ..

Top Tax Saving Mutual Funds (ELSS) 2012

This is probably the last yr for tax savings or ELSS mutual funds considering the UPA governments goal to introduce DTC soon. As of now, if one invests wisely Equity based investments and gold based investments would still perform better than FD Returns.

Post DTC rather than stop looking at MFs one can switch to investing in a mix of funds that include Gold ETFs, Large Cap Funds and Large and MidCap funds .

Please note that investing in equity or equity mfs in these uncertain times can be a bit risky. Please break up ur investments and dont invest in lumpsome especially when markets are up. I also recommend that one  invest in a basket of MFs, especially at market dips.   The funds are chosen on the basis of a decent portfolio and consistant returns rather than very high returns. That said here are my top  Tax Saving Mutual Funds.

Canara Robeco Equity Tax Saver

NAV 17.54 (17/02/12) EXPENSE RATIO 2.33

Manager >Soumendra Nath Lahiri
Since: Apr – 2011

This is now a consistent fund since its inception in Sep – 2008.

Axis Long Term Equity  Tax Saver-G

NAV 12.82 (17/02/12) EXPENSE RATIO 2.46

Manager >Chandresh Nigam

HDFC Taxsaver

NAV 228.67 (17/02/12) EXPENSE RATIO 2.07

Manager >Vinay R. Kulkarni

This post is a follow up to

Top Tax Saving Mutual Funds (ELSS) 2011