04 KALEIDOSCOPE ERGO Monday, March 23, 2009

Ask your query

I gave proof of my investments after my
company had already deducted the TDS. I
later realised that I paid more tax than I
need to. Have I lost the money?
Nizamdeen A, National Credits, Coimbatore
There is nothing to worry about. You can
get back the extra money from the Income
Tax department. All you need fill the in-
come tax return and claim the refund. You
will have to properly fill the Saral Form
(Form No 2D) and in the last row (Balance
Tax Payable/Refundable) fill in the amount
that needs to be refunded. Then file your
returns before the last date of filing and if
everything goes smoothly you should get a
cheque from the tax man within 3-4
months.
(Mail your personal finance queries to
finergo@goergo.in, with the subject line
‘Doctor’)

Quiz
1. ADR stands for
a) Anil Dhirubai Reliance
b) American Distribution Ratings
c) American Depository Receipt
d) Association For Democratic Reforms
2. ATM stands for A little planning can make your retirement a happy one
a) Automatic Teller Machine
b) Any Time Money
c) All Time Money

Sow and thou shall reap

d) Automated Teller Machine
Send your answers to finergo@goergo.in or
SMS your answers to 92813 98889. Example: If
you choose A as the answer to question 1 and
B as the answer to question 2, type 1A2B.
Winner will be chosen by lucky draw from all
correct answers and gets a free book on
Mutual Funds Participation of public and private (annuity)
In order to have a wide distribu-
Answers for last week’s quiz:
ETF- Exchange Traded Funds
body should make this new tion network the PFRDA has licensed
23 point of players, which includes
PFRD – Pension Fund Regulatory Devel-
opment Authority
pension scheme attractive banks, mutual funds and insurers.

Advantages
NPS offers flexibility to its mem-
SNEHA BAJAJ AND PRADEEP YUVARAJ bers. It allows members to access
their account from anywhere in the
News you can use
finergo@goergo.in
country, early withdrawals are al-

IIFCL raises Rs 10K cr
India Infrastructure Finance Company
Limited (IIFCL) has managed to raise Rs.
10,000 crore by way of tax-free bonds at an
interest rate of 8.65 per cent on March 17
way ahead of its March 31 deadline.
The funds will now be used to refinance
banks for projects that were tendered after
January 2009. The company has already
sanctioned projects worth $3.8 billion since
its inception in January 2006. It has
achieved financial closure in 75 of the 88
projects sanctioned by it.
T
he New Pension Scheme, (NPS)
which is to be launched on
April 1, 2009 by the Pension
Fund Regulatory and Develop-
ment Authority (PFRDA), will be
open to all citizens. NPS is being
awaited eagerly as there is this gen-
eral perception that any government
run scheme is safe. Also, according
to statistics the number of people
above the age of 60 is growing drasti-
cally thus the need for more friendly
schemes. So, how does NPS come of
help in your twilight years?
What is NPS?
It is a defined contribution
scheme in which citizens are allowed
to make contributions in their own
individual retirement accounts. This
amount is invested in the member’s
accumulation phase. These fund op-
tions would be renewed every three
years and new options might be add-
ed. The member after retirement can
withdraw a lump sum amount and
the balance amount be invested in
annuities that would give the mem-
ber regular income.
How it works?
The entire process of NPS involves
three kinds of intermediaries: One
group of institutions to collect the
contribution, another group to pro-
fessionally and profitably manage
the contributions and the final group
to ensure the distribution of amount
lowed (but exit age remains 60, con-
ditions apply).
Disadvantages
The awareness level is low and it is
not yet a mandatory scheme. So,
what is the cost one needs to pay?
A joining fee of Rs. 350; registra-
tion fee of Rs. 40; transaction cost of
Rs. 20 each time a new transaction is
made and Rs. 9 as a fund manage-
ment fee to take care of Rs. 10 lakh.
Unfortunately, the number of
members who will join this scheme
is uncertain and the scheme will
work only if the members are large in
number.
So, let us wait for April to plan our
retirement with the government! ■