Prajna Capital |
- How to Get Income Tax Refund
- How to choose between different tax-saving options
- Right Size your SIPs in terms of tenure and amount
| Posted: 18 Jan 2013 04:51 AM PST Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India) Many of us rush at the last moment for making right tax investments, this leads to incorrect disclosure of investments which will ultimately end you up in paying extra taxes. This extra tax paid in addition to actual tax liability leads to a situation of Tax refund.
Further in a situation where you think that you forgot (to mention bank account no., MICR code of bank) or did not have the proper documents to show the investments made, a Revised Return of Income needs to be submitted.
Thus, to conclude, prevention is better than cure. So it is always better to plan early and prevent paying extra taxes than to wait months to get your refund back.
--------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
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We can help. Call 0 94 8300 8300 (India)
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Invest Mutual Funds Online
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Download Mutual Fund Application Forms
Best Performing Mutual Funds
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| How to choose between different tax-saving options Posted: 18 Jan 2013 03:35 AM PST With many types of tax-saving instruments available for individuals, but the amount of investment allowed to avail exemption limited, one needs to plan well. Apart from non-tax factors — return on investment, flexibility to exit, recurring nature of investment, etc — the main tax considerations include tax impact not only at the time of investment, but also on future income and exit from the tax-saving scheme (commonly known as exempt at the time of contribution, exempt at the time of accumulation and exempt at the time of withdrawal).
One must look at the lock-in period for investment/exit and the quantum of general or specific limit for investment for tax savings. In the general category, where tax savings are available under Section 80C of the Income Tax Act, 1961, following instruments take a front seat as they are EEE schemes with relatively lower lock-in periods:
Equity Linked Savings Scheme is operated by various fund managers where the proceeds are invested in equity shares, with a lock-in of three years. Employee Provident Fund is a common form of investment often chosen by employees with a minimum lock-in of five years. While the employer's contribution is exempt, investment by the employees is eligible for deduction. Public Provident Fund is another option, in addition to EPF, where the contributions can be partly withdrawn after seven years and a full withdrawal is possible after 15 years.
Unit-linked insurance plans come with bundled benefit of both insurance and flexibility to manage the investment/return where the minimum maturity period would be around five years as the yearly premium cannot exceed 20% of the sum assured.
Life insurance has the primary intention of insurance with additional benefit of returns, though at a lower rate. The lock-in would depend on the specific scheme. As regards limits provided to certain types of instruments, additional savings for beyond R1 lakh can be availed by investing up to R20,000 under 80CCF in tax-saving infrastructure bonds. Moreover, R15,000 (R20,000 for senior citizens) is available under Section 80D for mediclaim insurance for self and dependents.
In addition, 10% of salary by way of employer contribution to New Pension Scheme under Section 80CCD is exempt, while the employee's contribution is included in the general limit of R1 lakh under Section 80C. Also, R1.5 lakh for interest on loan obtained for investment in self-occupied property (no limit if let out) provides tax exemption. Principal repayment, stamp duty and registration fee for purchase of property would be eligible under the general limit of R1 lakh under Section 80C.
While the above schemes are purely from a tax-saving perspective, a holistic view, considering the returns each scheme offers, would have to be considered. While the deadline for saving taxes for 2012-13 is fast approaching (March 31), one has to take out time to plan his taxes if not already done so. Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
Happy Investing!!
We can help. Call 0 94 8300 8300 (India)
Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Download Mutual Fund Application Forms from all AMCs Download Mutual Fund Application Forms Best Performing Mutual Funds
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| Right Size your SIPs in terms of tenure and amount Posted: 18 Jan 2013 03:10 AM PST Call 0 94 8300 8300 (India) Systematic investment plans (SIPs) are here to stay. Going by the growing number of SIPs, it does look like investors have taken to them in a big way. Today as much as . 1,000 crore flow into SIPs every month. A SIP, as the name denotes, is a method to invest a fixed amount in a mutual fund at regular intervals --generally monthly or quarterly. It is easy to do and the minimum amount with most mutual funds is a mere . 1,000 per month. You can write post-dated cheques for your investment, or give an auto-debit facility from your bank account. In fact, most investors today prefer setting up an auto debit for their SIPs, since writing cheques is cumbersome. Also, you can choose any tenure that you want for your SIP — six months, one year, five years, 10 years or even opt for a perpetual SIP which will continue forever till you stop it. However, the moot question is what is the ideal tenure of an SIP? THE TIME FACTOR Financial planners feel that it is important to run equity SIP for at least five years to maximise returns. "The important part in an equity SIP is to keep running it over a long period of time," says Bhaiya. The numbers speak for themselves. Even if you invested in the worst-performing SIPs and your time-frame was 10 years or 15 years, you would still earn higher returns than a public provident fund (PPF).
Happy Investing!!
We can help. Call 0 94 8300 8300 (India)
Leave your comment with mail ID and we will answer them
OR
You can write back to us at PrajnaCapital [at] Gmail [dot] Com
---------------------------------------------
Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs
Download Mutual Fund Application Forms
Best Performing Mutual Funds
|
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