Indian Budget 2010 - What it means

New banks will set up shop, more PSUs will list, 2011 will see a new tax code and there’ll be more money in the hands of investors... inflation's the last thing on dalal street's mind.

Infra bonds any takers?

Infrastructure bonds are not great products with interest as low as 5.5-6% and money locked in for 5-10 years. But that’s the only option to save more than Rs 1 lakh by way of tax if you don’t have a housing loan (which entitles you to Rs 1.5 lakh more). If you have an extra Rs 20,000, go for it.

Service tax to hit home buyers

Service tax will be charged if the builder does not produce the ‘completion certificate’. Booking a Rs 1-crore apartment before it’s ‘complete’, will mean a Rs 3-lakh tax over and above the value-added tax (VAT) collected by states. Genuine home buyers should insist on the certificate.
E-loan data registry to curb fraud

A new electronic registry to store title and borrower details will curb home-loan frauds. When a bank processes a home loan, it can find out whether the title deed is clear and no other lender has a claim on it.

Less govt borrowing fine for debt

No pressure to hike interest rates. Short-term plans (with 1-2-year maturity) look good for a 6-month investment since bond prices may rise, post March. Income funds may give decent returns if the govt does not front load its borrowing
Tax rejig to raise ULIP returns

Service tax on charges levied by life insurers on Ulip investors has been reworked. Returns will rise a little as more money out of premium gets invested. Property and overseas mediclaim premium may rise due to service tax on non-life insurance companies.

Service tax on mediclaim premium

Service tax on health claims will be settled by insurers directly with hospitals. Insurers will recover the money from policyholders. Health insurance costs may rise if insurers are not allowed to offset the tax against service tax on premium.

10 things to consider before lending money to friends or family

1. Never lend any amount you are not willing to lose.

2. Learn to say "It's not convenient" when asked to lend money.

3. Be wary of signing as a guarantor for someone else. In this country you can end up in prison.

4. Set a budget in your mind in case you are asked to help someone. Then say "honestly, it's not in my budget" when it isn't.

5. Know that you are not responsible for the troubles of others. It's ok to help others, but it is their problem so don't make it your own.

6. Remember that when the bank will not lend to them, they are probably a bad risk.

7. Offer to help them in some other way, perhaps pay them for work they can do for you, or help them find a better paying job.

8. Start building your own emergency fund. Make sure your loans and credit cards have insurance against redundancy. Get it in writing. If there is no insurance for unemployment — change your bank.

9. Ensure you have security for any lending you do. For instance, assign an investment they own to yourself, or get a letter telling their employer to deduct from salary to pay you, or take a post- dated cheque, or keep their credit card until you are repaid.

10. Don't assume they want to repay you. Many people are ahead of you in the queue for payment from the debtors.