Annuity Trap
You may be able to keep yourself away from traditional insurance products or unit-linked insurance plans, but you may not be able to avoid annuity plans, especially if you have invested in a pension product. On maturity of a pension product, one-third of your ‘commuted’ or redeemed corpus is tax-free, while the remaining two-thirds has to be invested in an annuity, if you do not want to pay tax on it. Similarly, if you are investing in National Pension System (NPS), you will have to buy annuity of up to 40% of your corpus. Annuity is supposed to secure your future with guaranteed returns for life, but 3%-7% interest per annum, which is taxable, just does not make it attractive, as our Cover Story points out. Also, regulation forces you to buy annuity from the same insurer who sold you the pension product. The insurer is able to lock you up for lifetime even if annuity rates are lower than the competitors’. In a companion piece, R Balakrishnan discusses the alternatives to annuities and, points out what would be a ‘tolerable’ option if you do have to choose an annuity. 
 
After 12 years, the Supreme Court has ruled that Ramesh Gelli, the promoter of the infamous Global Trust Bank, the Bank’s executive director, Sridhar Subashri, and others, were public servants under the Prevention of Corruption Act (PCA) and are liable to be tried under its stringent provisions. The case pertains to what is known as the Ketan Parekh scam. But will the government actually use PCA for cases like Kingfisher, Bhushan Steels, Winsome Diamonds, etc, asks Sucheta, in her Crosshairs column. In her Different Strokes column, Sucheta narrates how far removed the prime concerns of Securities and Exchange Board of India are from the interests of investors who continue to be wary of the stock market.
 
Moneylife Smart Savers will conduct its fourth Investor Club workshop on 16th April. Do not miss this first-ever opportunity to hear Dr Vijay Malik, a popular writer on stocks. He will explain how to assess the management of a company by using data that is freely available. To register, visit goo.gl/FIzOuU
 

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Haryana assembly unanimously passes Jat quota bill; Congress keeps away
Chandigarh : The Haryana assembly on Tuesday unanimously passed a bill to provide reservation to Jat and other communities. The opposition Congress legislators kept away from the session when the bill was passed.
 
There was immediate opposition to the bill from leaders of other communities and even some Jat leaders as well as a BJP parliamentarian.
 
The Haryana Backward Classes (Reservation in Services and Admission in Educational Institutions) Bill, 2016, was passed by voice vote in the ongoing assembly session within 15 minutes of being introduced. It was moved by Haryana Chief Minister Manohar Lal Khattar. No debate took place on the bill.
 
While the ruling BJP and Indian National Lok Dal (INLD) legislators were present inside the assembly when the bill was passed, the Congress legislators were not present.
 
The Congress lawmakers, according to party sources, kept away from the session on Tuesday to protest the six months' suspension handed down to three Congress legislators by the speaker on March 15. The legislators were suspended for tearing copies of the Governor's address. The Congress has 14 legislators in the 90-member house.
 
The state cabinet on Monday cleared the bill that proposed to provide reservation to the politically-dominant Jat community and four other communities -- Jat Sikhs, Tyagis, Bishnois and Rors.
 
Khattar, who claimed that the bill passage was a "historic day" for Haryana, said his government fulfilled the promise made to Jat and other communities for reservation in government jobs and educational institutions.
 
"The bill was brought after a lot of research. Every category will gain from this bill. It will be a win-win situation for all. There will be no loss to anyone (community)," Khattar told media after the bill was passed.
 
Jat leaders seemed divided on the bill passed in the assembly.
 
While Jat leader Hawa Singh Sangwan welcomed the bill, another Jat leader, Yash Pal Malik, said the bill has not done enough for the Jat community.
 
Congress leader and former minister Ajay Singh Yadav, who is from the OBC community, described the passage of the bill as a "black day" for Haryana.
 
BJP MP from Kurukshetra Rajkumar Saini, who has been opposing reservation for Jats, said it was a "murder of democracy". Saini has been opposing reservation to the politically-dominant Jat community in the state.
 
"The bill will give statutory status to Backward classes Block 'A', Backward classes Block 'B' and Backward classes Block 'C' by enacting the Haryana Backward Classes (Reservation in Services and Admission in Educational Institutions) Act, 2016, and request the Central Government to include this Act in the 9th Schedule read with Article 31B of the Constitution of India," a state government spokesman said here.
 
The bill provides for increase in percentage of reservation in Schedule I, II and III for Class I and II posts for BC 'A', BC 'B' and BC 'C' from 10 percent, five percent and five percent to 11 percent, six percent and six percent respectively.
 
It was also decided to increase the existing reservation of five percent for Economically Backward Persons in General Caste Category in Class I and II posts from five percent to seven percent.
 
The Bharatiya Janata Party government in the state had promised reservation for the Jat community and others after the recent Jat agitation for reservation left the state paralysed for nine days.
 
As many as 30 people were killed and 320 injured and property worth hundreds of crores of rupees was destroyed during the nine days as the agitation turned violent.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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50 more Netaji files to be posted online on Tuesday
New Delhi : The second batch of 50 declassified files relating to Netaji Subhas Chandra Bose will be posted on Tuesday on web portal www.netajipapers.gov.in, official sources said here.
 
Minister of State for Culture and Tourism Mahesh Sharma will formally release the files on Tuesday.
 
The new batch of 50 files consists of 10 files from the Prime Minister’s Office (PMO), 10 files from the ministry of home affairs, and 30 files from the ministry of external affairs, pertaining to the period from 1956 to 2009.
 
The first batch of 100 files relating to Netaji Subhas Chandra Bose, after their preliminary conservation, treatment and digitisation, was put in the public domain by Prime Minister Narendra Modi on January 23 on the occasion of the 119th birth anniversary of the freedom fighter. 
 
"The present release of 50 files will further meet the continued public demand to access these files and this will also help scholars carry out further research on the great leader of India's freedom movement," an official source said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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