thats the problem in India - all these rules are very old and so is this insurance amount on FDs. In north america, is $100,000 so here is its Rupees 100,000. Silly, isn’t it ? I wish there was a way (paid) to increase the insurance limit.

try out above website, it’s great for getting the latest fixed deposit rates, loan (home, personal, vehicle) rates and tax savings options. you have options to compare rates using different criteria.

-Sri

http://www.rbi.org.in/scripts/FAQView.aspx?Id=64

Q5 What is the ceiling on amount of Insured deposits kept by one person in different branches of a bank?

The deposits kept by one person in different branches of a bank are aggregated for the purpose of insurance cover and presently a maximum amount upto Rupees one lakh is paid.

Q6 Does the DICGC insure just the principal deposit amount or both principal and
accrued interest?

The DICGC insures principal and interest upto a maximum amount of Rs. One lakh. For example, if an individual had deposit(s) with principal amount of Rs.95,000 plus accrued interest of Rs.4,000, the total amount insured by the DICGC would be Rs.99,000. If, however, the principal amount were Rs. One lakh, the accrued interest would not be insured, not because it was interest but because the amount was over the insurance limit.

Q7 Can deposit insurance be increased by depositing funds into several different accounts all at the same bank?

No. All funds held in the same type of ownership at the same bank are added together before deposit insurance is determined. If the funds are in different types of ownership or are deposited into separate banks they would then be separately insured.

Q8 What is a single ownership account?

A single (or individual) ownership account is an account owned by one person. Such accounts include those in the owner’s name; those established for the benefit of the owner by agents, nominees, guardians, custodians, or conservators; and those established by a business that is a sole proprietorship.

Q9 Are deposits in different banks separately insured?

Yes. If you have deposits with more than one bank, deposit insurance coverage limit is applied separately to the deposits in each bank.

Read this link about deposits and its insurance - http://dicgc.org.in/html/faq.htm

I am shocked to learn that the fixed deposits in any Indian banks are insured only up to Rs. 1,00,000 (one lac) !!!

This is silly…..

If it is applicable for each account and not each customer then it may be a good idea for a single customer to open 10 different FD accounts in a bank for investing 10 lacs.

This kind of insurance will probably guarantee that one will not come down to road, should the bank close down….

Highest Fixed Deposit Rates for non-seniors
Duration Institutions Rate
3 months Punjab and Sind Bank 8.25
6 months Punjab and Sind Bank
Development Credit Bank 8.25
1 year DBS Bank 9.25
2 years DBS Bank 9.75
3 years Tamilnad Mercantile Bank 9.50
4 years Tamilnad Mercantile Bank
Lakshmi Vilas Bank 9.50
5 years Tamilnad Mercantile Bank
Lakshmi Vilas Bank 9.50
>5 years Tamilnad Mercantile Bank 10.00

Highest Fixed Deposit Rates for seniors
Duration Institutions Rate
3 months Punjab and Sind Bank 8.25
6 months Development Credit Bank 8.75
1 year DBS Bank 9.75
2 years Axis Bank
DBS Bank
South Indian Bank
Tamilnad Mercantile Bank 10.00
3 years Axis Bank
South Indian Bank
Tamilnad Mercantile Bank 10.00
4 years Catholic Syrian Bank
South Indian Bank 10.25
5 years Catholic Syrian Bank
South Indian Bank 10.25
>5 years Tamilnad Mercantile Bank 10.25

Sorry for one confusion - I was comparing apples and oranges when I mentioned my case. I realized that TDS is only on the interest earned in NRO if I had deposited th rent and has nothing to do with the tax on the whole rental income. I still have to pay tax on the rent. I mixed them up…my bad.

There are many consultants in Mumbai. All of them are well wired with IT guys. Good Luck.

I am very much relieved to know that Rule # 1 is valid and accepted by IT Devils. All that I have to worry now is to get a PAN card on time and pay the tax on the rent. This way Tax is much lower than TDS …woooo hoooo

And you also advised me earlier that a simple letter stating the gift is valid and accepted by IT. Stamp paper and notary is not must.
So I just finished typing the letter and printed it. Another relief !

I think I am safe now.

Nikhil, Thanks a lot for your time and your valuable inputs !

By the way, is your IT consultant located in Mumbai and charges reasonable fees for the entire thing? May be you can refer me.