As the time closes in for the Budget in mid-March, the question on the mind of everyone is: will we get a lower tax rate? For most of the people watching, the budget doesn't begin until the finance minister says "tax slabs" and ends immediately thereafter. But the underlying assumption for lowering direct taxes is that a lower tax rate will result in greater compliance with more taxpayers coming forth to pay; the overall result being that tax collections increase.

While this has happened in general, the tax collections have been very low this year, despite large slab changes in the last budget. The total tax receipts have gone up only 7% till December, making it a pretty bad year — only 2008 and 2009 were worse. It is thus likely that the government starts to take a hard look at where they must cut down the deficit, and they provide an estimate of "Revenue Foregone" under various proposals.

Let's take a look at the "losses" that the government faces through lower taxes or tariffs on

"Borrowers will default. Markets will collapse. Gold will skyrocket." - Michael Belkin

Michael Belkin did see it coming; Gold has been in the limelight ever since 2008 when the meltdown made many investors poorer. Gold has always been the safe haven during apocalyptic times. In recent times, it has had brief bouts of correction on the backdrop of the strengthening of the USD, but this is only likely to be a temporary phenomenon. With the global scenario looking bleak it wouldn't be long before things start looking bright for the yellow metal again.

Interestingly, investments into gold have gone up only after gold itself has seen a sharp spike! Here are a few pointers to help you invest in gold in a better manner.

Gold —The Preserver
Gold is a preserver of value and hence is a good hedge during 'Inflation'. The recent turmoil in the economy saw Gold hitting significant highs. 'Gold' is a unique commodity, given that it is negatively / non-correlated with some of the factors that affect 

"I have a credit score of 785 but I am still having difficulty in getting a home loan, " expressed a concerned participant on one of my television shows.

On further questioning, he informed, "The lenders tell me that it's due to an issue with one of my credit cards in 2008 which I paid up fully in the last quarter of 2009 though the payment was admittedly late by around 14 months. I have several other loan accounts which have always been and continue to be up to date and my credit score is good (785 out of a possible maximum of 900). I have sufficient income and there are no other issues in getting the home loan. Can you tell me what I can possibly do to solve the problem?"

The answer unfortunately is that the participant will probably have to move to second rung lenders who may charge a little higher interest rate. To understand this answer let's do a quick recap on what is a credit score and how is it used by lenders. Now most readers are aware that Credit Information Company of

When we talk about credit card usage we find different people managing it in a different way. Some people are highly disciplined and never default on their monthly installments and others are so messy that they are always on the top of the defaulter list. Managing finance is a complex task and it's very easy to fall into a debt trap if you misuse the power of free credit. Credit card provides you the power but it never suggests that this power is unlimited. You have to pay the dues back at the end of the free credit period but somehow the human mind doesn't listen. To avoid getting into trouble in future it's advisable to understand your credit personality and choose the credit card which suits you the best. Credit card companies provide credit cards with different features like different interest rate, different reward structure, different credit limits etc. If you understand the way you deal with credit it gets easier to choose the best combination for you. Let's see what kinds of

Ajit, currently employed with Company A, is staying in a rented apartment in Mumbai and has bought himself a property in Chennai for which he has taken a home loan. He finds himself in a dilemma while filing tax returns — "Can I claim both HRA and home loan benefits?" This seems to be a confusing factor for most tax payers.  When Ajit pays rent, under the Income tax act, he is definitely allowed to claim both HRA and home loan benefits (interest payment and principal repayment).

Let us evaluate various possible situations an individual can find himself in and understand what the income tax act permits him to do.

1: You live in your own house

You have taken a home loan and residing in the house purchased with it. Since you are residing in your own house, you will not be able to claim HRA. However, you will be able to claim tax benefits on both, the principal and interest repaid on the home loan.

2:  You own a house in another city

This situation was the one faced by Ajit. He resided in

Government of India has outlined a plan to spend $1 trillion in next 10 years on infrastructure development. This development is needed because infrastructure needs to support and sustain the projected growth rate of Indian economy for next few decades. To fund this initiative, the Government is trying to tap the various sources at its disposal. Infrastructure bond is just one source where Government has given tax breaks for up to Rs 20,000 for individuals. This is to attract retail investment.

Infrastructure bond vis-à-vis other debt instruments

Infrastructure bond is widely welcomed by salaried individuals who have been demanding to increase the tax break from 1 lakh. It has given them another avenue to invest for tax saving purpose. Let's take a look at other investments that are available and provide a fixed income.

Debt oriented mutual funds

The other debt instruments available for investment are debt oriented mutual funds. These funds allocate major part of the fund in Government

The three reasons people buy insurance is:

a) To save tax.

b) As an investment, to make a good return on their money.

c) To feel good that one has some insurance or to get rid of that pesky uncle who keeps mentioning it.

The fourth — and perhaps most important — reason to buy insurance is to let your family be financially secure if you die. This is the only reason anything should be insured. Car insurance gives you money if your car has an accident, and covers costs for people you might injure. Home Fire insurance covers the damages in case there's a fire. You pay every year, and you're happy to not have to claim (because it means you've not had an accident or a fire!); and at the end, you don't get your money back.

Not so with Life insurance. The most policies bought are for the purpose of saving or investing, not for insurance. And that, further, is because Life Insurance is hardly ever bought, it's sold. The sellers get a fatter commission when they sell you a "saving" product, so

In 1973, the Kreditbanken (bank) at Norrmalmstorg in Stockholm was attacked by robbers, who held bank employees hostage for five days. After the drama, it was evident that the hostages sympathized with their captors, even though they were held against their will. The situation is now considered an academic study — the Stockholm Syndrome — where people get emotionally attached to people who obviously try to do them harm.

More apparent, perhaps was the case of Jaycee Lee Dugard, who was held for 18 long years — from 1991 to 2009 — but got so emotionally attached to her abductor that she even helped him in his business and met customers. Being an unwilling hostage, or in other cases, just being in an unwelcome situation with no way out, makes us rationalize in favour of our position.

Less dramatically, we become hostage to our own opinion. We simply can't let go of what we believe is "normal", even in the face of facts. If your blood tests show you have a high cholesterol level, your