Prajna Capital

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• Tax planning must account for retirement and inheritance
• Start planning taxes early to get maximum returns
• Short term Debt Products

Tax planning must account for retirement and inheritance Posted: 29 Mar 2013 05:00 AM PDT Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) Tax planning must account for retirement and inheritance Over 65% of tax-payers across the country scurry with their last minute tax related investments in the final four months of the year. While, obviously, early tax planning can help you avoid the rush of filing right before the due date, it can also provide a variety of other benefits. Efficient tax planning simply means to start the year knowing what will be tax deductible, identifying what income will be taxable and determining what moves you can make to get the best tax advantages throughout the year. Early tax planning helps To file right: Early tax planning avoids last-minute rush that can lead to computational errors or overlooked deductions and credits, especially if you do your own taxes at the last minute. In avoiding penalties: You can avoid late penalty, as well as an interest charge through early tax planning and attention to deadlines. In taking advantage of deductions and credits: Early planning lets you identify tax credits and deductions that you can take advantage of now, but won't have access to in the future. In long-term tax planning: Changes in your financial life, such as retirement or inheritance, have major tax implications that you can account for if you plan ahead. Estate planning and retirement planning can ensure that you don't lose more of your savings or estate to taxes than you need to. In SIP your way to tax planning: Knowing your tax liability can efficiently help you participate in instruments like ELSS, RGESS, Ulips and PPF, spread over the entire 12 months, rather than struggle for funds in the last 3-4 months. For one it helps your cash balances, and at the same time it also gives fantastic rupee cost averaging opportunity. In planning your losses: You should make the effort to know more about the rules to set-off your short-term and long term capital losses and you would be pleasantly surprised how losses can save you on taxes. In planning your loans: Plan when you can take that plunge into taking a home loan (with new sops thrown in - it just might make sense for new home buyers). Time the loan in such a way that you get the maximum benefit from the interest deductions. In changing your entity structure: Create the optimal entity structure for your family and yourself through HUF and trusts to maximize your tax benefits and legal asset protection benefits. 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

Start planning taxes early to get maximum returns Posted: 29 Mar 2013 04:29 AM PDT Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) Start planning taxes early to get maximum returns Last-minute rush to save taxes makes investments prone to mistakes, losses It's that week of the year when a large number of people rush to put money in a handful of investment products which allow investors to lighten their annual tax burden. This is because every tax saving option for the current financial year would expire on March 31. To take this opportunity of huge aggregate investments from the last-minute tax savers, the sellers of these products, like mutual fund houses, insurance companies, investment intermediaries and agents also push such products. This is a situation that is repeated year after year. However, as a tax payer who also has investment needs, you should not wait for the last-minute window of opportunity to save taxes. Rather, taxpayers should always make a plan to save taxes at the beginning of the fiscal, that is in April itself, financial planners and advisors say. There are several advantages of planning to save taxes early in the year. One could start a monthly systematic investment plan (SIP) in an equity-linked savings plan (ELSS) in April itself and continue it through the year. SIP inculcates investment discipline and has the potential to give returns which can beat the inflation over the long term. It also allows the investor to reap the benefits of rupeecost averaging, that is you buy more when the price is low and less when prices are high, averaging out your cost of acquisition. In comparison, if you invest a lump sum amount, you may not have got the best price to invest in that ELSS. Another advantage relates to public provident fund (PPF), one of the best tax-efficient fixed income products available in the market. In PPF, if you put money on April 5 or earlier, you get the interest for the full year. But if you put money on any day after April 5, the interest accrues to your PPF account only from the next month, that is from May. Another phenomenon seen among these last-minute savers is they usually invest to save taxes rather than invest for themselves. For every person who is saving, the primary objective should be investing, and tax savings should be an incentive. Tax saving should not be the primary objective. So naturally, if one starts investing from the beginning of the financial year itself, you would look at the investment angle first, and chances are that tax savings would happen smoothly, through the next 12 months. There are some disadvantages of starting to save taxes at the last moment. For one, according to Kothari, in case there are some signature mis-matches or a cheque that you gave with the investment-related form bounced, you are unlikely to have a second chance at the last hour and would end up paying higher taxes than ideally you should have. In their last-moment rush, investors often end up committing several mistakes, some are errors of judgment while some because of the rush to invest they miss the fine points if investment products they are investing in. In some cases, investors just end up being gullible to distributors and agents who are only out to make money selling products which may not be the best fit for their risk profile. Common tax-saving instruments •Equity Linked Savings Scheme •Public Provident Fund •National Savings Certificate •Insurance policies •Tax-saving fixed deposits Common mistakes in last-minute investing •Low-risk investors opting for high-risk investment products •Buying a new policy each year when paying premium on the old one would suffi ce •Investing in a low-return policy that gives the agent a fat commission •Investing in multiple tax-saving products with aggregate amount exceeding the threshold limit •Buying a market-linked product at a high price just because everyone else was doing the same •Missing out on investments that offer higher post-tax returns, even if they don't save taxes 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

Short term Debt Products Posted: 29 Mar 2013 02:38 AM PDT Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) Domestic mutual fund managers have taken a bullish stance on ultra shortterm debt products, saying the category could offer around 15% annualised return over the next one month on expected rally in short-term papers (CPs and CDs). According to money managers, interest rates in ultra short-term debt products, mainly commercial papers (CP) and certificates of deposit (CD), are high as companies are facing tighter liquidity condition due to advance tax payments, and mutual funds are witnessing redemption pressure from corporates. It's a good opportunity for investors to make money through investment in CPs and CDs. At present, interest rates are high in these shortterm papers as mutual funds are facing redemption pressure from corporates. We expect interest rates in short-term papers to ease over next one month as the RBI has cut interest rates. Thus, investors can make money as prices of these papers are expected to go up. Currently, one-year CPs and CDs offer around 9%. Fund managers expect it to ease by 75 basis points (9% on annualised basis) over the next one month to 8.25%. Thus, people who are investing in short-term papers around post mid-March are likely to make 15-17% annualised return by April (current rate 9% on shortterm papers, plus 9% gain from rally due to easing short-term yields, on an anualised basis), post deduction of expense ratio, which is around 1% to 1.5%. Fund managers also expect portfolio reshuffling in favour of short-term debt products and see equity markets remaining flat over the next one month.   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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