Tax Titbits

Abstract

Real estate and gold have been acknowledged as hedges against inflation. There is now a direct hedge available in Inflation Indexed National Savings Securities - Cumulative 2013, which are bonds notified under F.4(16)- W&M/2012, dated 19.12.2013 (2014) 361 ITR (St.) 50. It is available for all resident Indian and charitable institutions approved under section 80G of the Income Tax Act, besides Universities. Minimum limit for each bond is Rs. 5,000 while the maximum limit is Rs. 5 lakhs. It will bear interest at 1.5%, which will be cumulative in character on half-yearly basis in addition to incremental inflation reckoned with reference to consumer price index base for 2010 taken as 100.