Prajna Capital

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• Tax Saving mistakes which can be avoided
• SBI Mutual Fund Nearing a Deal to Buy Daiwa Mutual Fund
• Term Insurance

Tax Saving mistakes which can be avoided Posted: 12 Feb 2013 03:07 AM PST Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     Basic tax knowledge and a little planning can help you avoid these costly mistakes, writes Manshu Verma 1 Not including all eligible deductions Many taxpayers don't know about all the possible options under Section 80C. Besides the investments, there are several expenses that are also eligible for deduction, such as school fees of children, housing loan repayment and stamp duty and registration charges paid for a house. In fact, you could have already exhausted your 1 lakh limit and don't need to make any further taxsaving investments. 2 Not availing of other tax deductions Most taxpayers do not look beyond Sections 80C and 80D when they are calculating their tax liability. If you or a dependant suffer from any of the 8-10 specified diseases or physical disability, you can claim a deduction of up to 60,000 under Sections 80U, 80DD and 80DDB. Your donations to specified charities are also eligible for deduction under Section 80G, while education loan interest is fully tax deductible under Section 80E.   3 Buying insurance to save tax This is the most common tax folly that Indians make. Life insurance is absolutely necessary and should be taken by everybody. However, the objective should be protecting your family's financial future, not save a few thousand rupees in tax. See tax saving only as a discount on the premium, not as the purpose of buying insurance. When you buy life insurance, you enter a long-term recurring commitment. Getting out of it is a costly affair because you end up paying surrender charges. If you choose a traditional insurance plan, the high premium could prevent you from investing for other financial goals. 4 Not taking taxability into account Each tax-saving investment gets a different tax treatment. The interest earned on the PPF is tax-free, but income from fixed deposits, NSCs and Senior Citizens' Saving Scheme is fully taxable. This is why the 8.8% offered by the PPF is a better option than the 9% offered by a fixed deposit. Insurance policies offer taxfree income, but the pension received from an annuity plan is taxable. Keep in mind the taxability of income when you invest in a tax-saving option. 5 Investing lump sum in equity This happens if you compress the entire year's tax planning into the last few days of the financial year. If you invest a large sum in an ELSS fund at one go, you are taking a big risk. Similarly, investing a lump sum in the equity option of a Ulip may be a bad idea. Equity investments should be staggered across the year so that you are not caught on the wrong foot. 6 Ignoring the lock-in period All Section 80C investments come with a lock-in period, ranging from three years for ELSS and extending till retirement for the NPS. Be sure to match the lock-in period with your requirement before you make the investment. Also, research before you invest. The PPF, for instance, has a 15-year lock-in term, but this progressively comes down over the years. In the 14th year, the lock-in period is only one year. Besides, you can make partial withdrawals after five years. 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 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 ) ICICI Prudential Tax PlanInvest Online HDFC TaxSaverInvest Online DSP BlackRock Tax Saver FundInvest Online Reliance Tax Saver (ELSS) FundInvest Online Birla Sun Life Tax Relief '96 Invest Online IDFC Tax Advantage (ELSS) FundInvest Online SBI Magnum Tax Gain Scheme 1993Invest Online Sundaram Tax SaverInvest Online Edelweiss ELSS Invest Online ------------------ Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Birla Sun Life Front Line Equity Fund Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund Tax Saver MutualFundsInvest Online ICICI Prudential Tax Plan HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

SBI Mutual Fund Nearing a Deal to Buy Daiwa Mutual Fund Posted: 12 Feb 2013 02:43 AM PST Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds     SBI Mutual Fund, owned by India's largest lender by assets, is in the final stage of negotiations to purchase Japanese asset management firm Daiwa Mutual Fund, which manages assets worth around . 500 crore, three people familiar with the development said. This signals the consolidation of smaller players hit by higher marketing and distribution cost. SBI is likely to pay around 1.5% of the assets Daiwa manages as the seller has less attractive equity schemes and more debt schemes. SBI Mutual Fund denied any such development. "We are progressing and it is premature to talk about a deal," aperson familiar with the development said. Buyers pay anywhere between 6% and 7% for larger assets and talent which manages the fund. Last year, L&T Finance paid . 550 crore, or 6.2%, to purchase Fidelity Asset Management with . 8,880 crore worth of assets under management. SBI Mutual Fund has average asset under management of . 53,311 crore at the end of the December quarter. Daiwa, which purchased Shinsei Asset Management in March 2010, manages . 537.22 crore as at the end of the December quarter with a very small equity portfolio of . 29 crore in two schemes. It manages 12 debt schemes. ET had reported earlier that it had been looking to exit the mutual fund business. Daiwa MF is headed by N Sethuraman, former chief investment officer of SBI MF. He cannot be quoted as he advises many mutual funds. Japanese companies have been purchasing a slice of Indian asset management companies for the past two years. Nippon Life purchased 26% stake in Reliance Mutual Fund for . 1,450 crore and Nomura bought 35% in LIC Mutual Fund for . 3,080 crore. India has 44 asset management companies led by HDFC MF with . 1 lakh crore of assets. 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 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 ) ICICI Prudential Tax PlanInvest Online HDFC TaxSaverInvest Online DSP BlackRock Tax Saver FundInvest Online Reliance Tax Saver (ELSS) FundInvest Online Birla Sun Life Tax Relief '96 Invest Online IDFC Tax Advantage (ELSS) FundInvest Online SBI Magnum Tax Gain Scheme 1993Invest Online Sundaram Tax SaverInvest Online Edelweiss ELSS Invest Online ------------------ Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Birla Sun Life Front Line Equity Fund Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund Tax Saver MutualFundsInvest Online ICICI Prudential Tax Plan HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

Term Insurance Posted: 12 Feb 2013 01:45 AM PST Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     This is the most basic type of life insurance cover, you could ask for. While the terms are quite simple for policyholders to understand, the premiums are also low. A term plan pays the total sum assured to family members or nominee in case the policyholder dies before the tenure of the plan is over. Supposing a 30-year-old individual takes a term insurance policy for 25-year tenure, with coverage of Rs 50 lakh and dies before the term gets over, then the nominee would be entitled to the insured sum of Rs 50 lakh. The annual premium for such a policy would range between Rs 4,500 and Rs 7,500, depending on your age and the insurance company you choose. Many insurers may offer you the cheapest product, but have poor claims payment history. Look at the insurer's claims payment ratio, brand, reputation, promoters and solvency ratio before zeroing on the product. Many private insurers offer term plans online. While buying the policy, individuals must declare correct information related to the health of themselves and their family members, so that there are no problems at the time of claim settlement. Also, should the insurer ask for certain medical tests, it is advisable to oblige. Another important factor is to calculate adequate amount of life cover. While some insurance advisers suggest a minimum of five times the annual salary, this is only a bare minimum coverage due to rising inflation. An individual should ideally get a term insurance plan covering his income till retirement. For a 40-year-old, earning Rs 10 lakh every year, planning to retire at 60, then the adequate sum insured should be Rs 2 crore. Before making investment decisions on child's education or marriage, one should secure the family's future against any unforeseen event, such as death. It is best to opt for term plans at an early age since the premiums are low and liabilities like home or car loans are high. 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 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 ) ICICI Prudential Tax PlanInvest Online HDFC TaxSaverInvest Online DSP BlackRock Tax Saver FundInvest Online Reliance Tax Saver (ELSS) FundInvest Online Birla Sun Life Tax Relief '96 Invest Online IDFC Tax Advantage (ELSS) FundInvest Online SBI Magnum Tax Gain Scheme 1993Invest Online Sundaram Tax SaverInvest Online Edelweiss ELSS Invest Online ------------------ Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Birla Sun Life Front Line Equity Fund Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund Tax Saver MutualFundsInvest Online ICICI Prudential Tax Plan HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

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