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Our Founder reliance info

Our Founder reliance info

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Published by sagar09
information on reliance
information on reliance

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Published by: sagar09 on Jul 16, 2008
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Our Founder 
 Few men in history have made as dramatic a contribution to their country’s economic fortunes as did the founder of Reliance,
Shri. Dhirubhai H Ambani
. Fewer still have left behind a legacy that is more enduring and timeless.As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: Thecorporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of India’s capitalmarkets, the champion of shareholder interest.But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth creator. In one lifetime, he built,starting from the proverbial scratch, India’s largest private sector enterprise.When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crorecolossus—an achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indianprivate company to do so.Dhirubhai is widely regarded as the father of India’s capital markets. In 1977, when Reliance Textile IndustriesLimited first went public, the Indian stock market was a place patronised by a small club of elite investors whichdabbled in a handful of stocks.Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in theunfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, inexchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets.Under Dhirubhai’s extraordinary vision and leadership, Reliance scripted one of the greatest growth stories incorporate history anywhere in the world, and went on to become India’s largest private sector enterprise.Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost inmind, in the process making millionaires out of many of the initial investors in the Reliance stock, and creating oneof the world’s largest shareholder families.
Reliance Life Insurance
offers you products that fulfill your savings and protection needs. Our aim is to emergeas a transnational Life Insurer of global scale and standard.Reliance Life Insurance is an associate company of Reliance Capital Ltd., a part of Reliance - Anil DhirubhaiAmbani Group. Reliance Capital is one of India’s leading private sector financial services companies, and ranksamong the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capitalhas interests in asset management and mutual funds, stock broking, life and general insurance, proprietaryinvestments, private equity and other activities in financial services.
Reliance - Anil Dhirubhai Ambani Group
also has presence in Communications, Energy, Natural Resources,Media, Entertainment, Healthcare and Infrastructure.
What is Life Insurance
 Life insurance is a contract between you, the policy owner, and the insurer company. It pledges the payment of acertain sum assured to you or your family when the event that you are insured against occurs. In most cases, theevents during which the contract is valid for payment are:
When the contract reaches maturity
If unfortunate death occurs before the date of maturity
SicknessSome policies even offer the benefit of paying a percentage of the sum assured at certain periodic intervals, whichmeans that you can have a dual benefit of a life cover and easy liquidity through some lump sum cash.
Why You Need Insurance
Life insurance is a partial compensation for the problems caused by untimely death. It works in the followinghazardous situations:
Premature death of the breadwinner leaving the dependents to fend for themselves.
Surviving old age without any visible means of support.So, even while you may think that you may not need life insurance, cast a thought over the future of your family if they have to survive in your absence. Life insurance gives them the financial security that they will need for thefuture.
Who Can Buy a Policy
 You can take a life insurance policy once you have attained majority and are eligible to enter into a valid contract.Few policies can also be taken on the life of your spouse or children, subject to certain conditions.While endorsing an insurance proposal, most companies take into account your state of health and income amongother factors.
Life Insurance V/S Other Savings
Contract of Insurance
A contract of insurance is technically known as uberrima fides, which means it is a contract of utmost good faith. Inthis principle, you have the doctrine of disclosing all material facts and that applies to all forms of insurance. Anymisrepresentation, fraud or non-disclosure in any document leading to the acceptance of the risk will render theinsurance contract null and void.
Life insurance assures payment of the entire amount assured (along with bonuses, wherever applicable) in case of demise, whereas in other savings schemes, only the amount saved (with interest) is payable.
Aid to Thrift
Life insurance schemes allow ‘thrift’, that is, it allows long-term savings because premium payments can be madethrough an easy instalment facility. Premium payments can be monthly, quarterly, half-yearly or yearly. Someinsurance schemes provide a convenient method of paying premium each month by deducting the amount fromyour income.
Security on Loan
Generally, a life insurance policy is accepted as security, even for a commercial loan. You can acquire loans on thesole security of a policy that has acquired loan value.
Tax Relief 
The best way to enjoy deductions on income tax and wealth tax is through life insurance. The deductions areavailable for amounts paid by way of premium for life insurance subject to the prevailing income tax rates. You canalso avail of provisions in the law for tax relief, in which case you, as the assured, can pay a lower premium for theinsurance than what you normally pay.
Easy Liquidity at Periodic Intervals
You can avail of money when you need it if you have taken a suitable insurance plan, or a combination of plans. Itwill help you meet certain financial needs as and when the need arises. Situations such as children’s education,marriage or any other need for cash can be made less stressful with the help of such policies. You can also use
policy money at the time of retirement from service, or for any other purpose such as purchase of a house,investments, etc.
Tax and Tax Savings
What is Income Tax?
An income tax is a tax levied on the financial income of persons, corporations or other legal entities. Tax rateslevied on your income may be:
A progressive tax rate is charged based on how much you earn, which means that if youearn more you are taxed more.
A flat tax rate charges the same rate no matter how much you earn.
The regressive tax rate charges you only up to a certain level of income, for example, thefirst Rs. 90,000 of your income.In India,
progressive income tax
is levied on the income of individuals, Hindu Undivided Families (HUFs),companies (firms), co-operative societies and trusts. There are certain slabs on which income tax calculations areconsidered:
If you earn up to Rs. 1,50,000*per year, then no income tax is charged.
If you earn between Rs. 1,50,001–3,00,000 per year, the tax charged is 10% of the amount greater thanRs. 1,50,000..
If you earn between Rs. 3,00,001–5,00,000 per year, the tax charged is 20% of the amount greater thanRs. 3,00,000 + Rs. 15000.
If you earn above Rs. 5,00,000 per year, the tax charged is 30% of the amount greater than Rs. 5,00,000+ Rs. 55,000.*The basic exemption limit for women is Rs.180,000 and senior citizens is Rs.225,000.A surcharge of 10% is payable on tax for incomes exceeding Rs. 10 lakhs.
How to Save Tax?
You should always consider tax planning as a necessary exercise in your financial planning process. How muchtax you can save depends on factors like risk appetite, investment objective and tenure of investment.
Section 88
Prior to the Finance Bill 2005, provisions for tax rebates fell under the gamut of Section 88. To claim tax benefitsunder this Section, you would have had to make investments of up to Rs. 1,00,000 in Public Provident Fund (PPF),National Savings Certificate (NSC), tax-saving funds (also referred to as Equity Linked Saving Schemes—ELSS)and infrastructure bonds. The problem with this Section was that there were caps on the amount you could investin each tax-saving instrument and there was no flexibility in choosing the tax-saving instruments. Section 88decided everything for you.
Enter Section 80C
In the Finance Bill 2005, Section 88 was scrapped and it gave way to the new Section 80C. Under this section, youcan invest up to Rs. 1,00,000 in tax-saving instruments, but the biggest advantage is that you can make your owninvestment choices, i.e. you can decide how to spread your investment of Rs. 1,00,000 over PPF, NSC, ELSS andinfrastructure bonds.

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