Company Fixed Deposits offer higher interest rates, than bank interest rates, partially to compensate for the higher risk associated with them. Investors should study the fundamentals of the company, before investing. There have been a few instances of the companies, defaulting on their payment obligations. The post from Jago Re Investor, provides some examples of defaults.
Investor Beware!
If you have sold a property and made a profit from the sale – you are liable for capital gains taxes. You can minimize or avoid the tax liability by investing the capital gains, into Section 54 EC bonds, issued by the National Highway Authority of India or Rural Electrification Bonds.
Use the following formula, to determine the amount to invest, to eliminate taxes.
| Purchase Price : A | Rs |
| Sale Price : B | Rs |
| Inflation Index in the year of purchase (eg. if the unit was purchased during 1990-1991, then the Index is 182) : C | |
| Inflation index in the year of sale : D | |
| Inflation Adjusted Purchase Price : E = A * D/C | |
| Gains : F=B - E | Rs |
| Taxes with indexation : G = 0.20 * F | Rs |
The amount (Rs. G) above is the amount, that you owe in taxes. You can reduce the tax liability to Zero, by investing the capital gains (E) , into three year bonds from National Highway Authority of India or Rural Electrification Corporation. The amount must be invested within six months of sale of the property.
These bonds currently yield 6% and are rated AAA by CRISIL. The interest on the bonds is taxed. Further, you can invest a maximum of Rs 50 lakhs, in a given year.
NHAI Series XI Application Form (Details)
REC Capital Gains Tax Exemption Bonds Series VIII Application Form
Damodar Group is one of leading manufacturers and exporters of Cotton , Polyester and Polyester Blended Value Added Yarns. The group specializes in manufacturing of Linen Like Yarns, Silk Like Yarns, Slub Yarns, Neps Yarns in 100 % Cotton, 100 % Polyester, Poly/Viscose and other special blends.
The Group has been constantly expanding in various fields of yarns like Air Texturising, Yarn Dyeing, Multi Printed Space Dyed Yarns, Mono Filament Polyester Yarn, Textured Twisted Yarn.
The Group has a widespread presence in India through its own offices and its agency network for marketing its products. In India the company is present in Mumbai, Bhilwara, Surat, Ichalkaranji, Delhi and other places.
Damodar Group is well established in different textile markets across the globe . They currently export to over 40 countries across Europe, South Africa, South America, Australia, Korea, Belgium, Singapore, Italy, Egypt and the Gulf countries.
The company is offering Fixed Deposits, with durations ranging from 1 to 3 years, as per the table below:
| Period | Rate of Interest |
| 1 year | 11 % p.a. |
| 2 years | 11.50 % p.a. |
| 3 years | 12 % p.a. |
Employees of Damodar Group, Senior Citizens (60+) and share holders will be given an additional 0.5%.
Deposits should be for a minimum amount of Rs 5000/- and in multiples of Rs 1000/- thereafter.
TN Power Finance is owned by the Govt. of Tamil Nadu. It has been offering FDs since 1991 and has over 4 lakh depositors.
Effective December 16, 2010, the corporation has revised the interest rates on its Fixed Deposits:
The company offers two schemes : Regular Interest Payment Scheme (RIPS) and Cumulative Interest Payment Scheme (CIPS). The interest rates for the various schemes are as follows:
Regular Interest Payment Scheme
| all depositors | Senior Citizens (58+ years) | |
| 36, 48 and 60 months | 9.50% pa (compounded monthly) Yield : 9.91% pa | 10 % pa (compounded monthly) 10.47 % pa |
Cumulative Interest Payment Scheme
| all depositors | Senior Citizens (58+ years) | |
| 60 months | 9.50% pa (compounded monthly) Yield : 12.10% pa | 10 % pa (compounded monthly) 12.91 % pa |
Download application forms from www.tninfrafinance.com or www.tnpowerfinance.com.
TN Power Finance is owned by the Govt. of Tamil Nadu. It has been offering FDs since 1991 and has over 4 lakh depositors.
Effective December 16, 2010, the corporation has revised the interest rates on its Fixed Deposits:
The company offers two schemes : Regular Interest Payment Scheme (RIPS) and Cumulative Interest Payment Scheme (CIPS). The interest rates for the various schemes are as follows:
Regular Interest Payment Scheme
| all depositors | Senior Citizens (58+ years) | |
| 36, 48 and 60 months | 9.50% pa (compounded monthly) Yield : 9.91% pa | 10 % pa (compounded monthly) 10.47 % pa |
Cumulative Interest Payment Scheme
| all depositors | Senior Citizens (58+ years) | |
| 60 months | 9.50% pa (compounded monthly) Yield : 12.10% pa | 10 % pa (compounded monthly) 12.91 % pa |
Download application forms from www.tninfrafinance.com or www.tnpowerfinance.com.
Kirloskar Electric Company Limited is one of the large Engineering and Manufacturing companies in India. Established in 1946, Kirloskar Electric ushered the Indigenous Electrical Manufacturing Industry in India.
Kirloskar Electric makes more than 70 products under 8 different product groups catering to core sectors of the economy like Power Generation, Transmission and Distribution, Industrial Power, Transportation, Renewable Energy, etc.
Kirloskar Electric Network of
• 9 Manufacturing Facilities for multiple products.
• 34 Sales offices spread across the country and 3 Offices abroad
• Wide network of 47 Spares Dealers and 100+ Service centers with 200+ Dealers enable the company to efficiently serve and advise the customers on suitable products, systems, services at competitive prices.
Kirloskar Electric Company is the first company to make Electric Motors in India.
The Kirloskar Group is back with Fixed Deposits, at attractive rates.
The company is offering two schemes (Non-Cumulative and Cumulative), with interest rates, as listed below:
| Non-Cumulative (interest payable quarterly) | Cumulative (interest payable on maturity) | |
| 1 Year | 11.5% | 11.5% |
| 2 Years | 12% | 12% |
| 3 Years | 12.5% | 12.5% |
The yield on a 3 year cumulative FD is 14.89% p.a.
The minimum investment is Rs 50000/- and in multiples of Rs 10000 thereafter.
Application forms are available for download.
Update : December 26: Deposit receipts are being sent, to depositors, whose applications were processed by Kirloskar on December 14, 2010.
The Kirloskar Group is back with Fixed Deposits, at attractive rates.
The company is offering two schemes (Non-Cumulative and Cumulative), with interest rates, as listed below:
| Non-Cumulative (interest payable quarterly) | Cumulative (interest payable on maturity) | |
| 1 Year | 11.5% | 11.5% |
| 2 Years | 12% | 12% |
| 3 Years | 12.5% | 12.5% |
The yield on a 3 year cumulative FD is 14.89% p.a.
The minimum investment is Rs 50000/- and in multiples of Rs 10000 thereafter.
Application forms are available for download.
