Wednesday, September 18, 2013

Prajna Capital

Prajna Capital

What is advance tax?

Posted: 18 Sep 2013 01:33 AM PDT

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

THE due date for first instalment of advance tax for individuals for financial year 2013-14 is September 15. With due date just around the corner, it would be a good idea to take stock of your incomes and pay taxes on time.


What is advance tax? The concept of advance tax is outlined in Section 208 of the Income-Tax Act, 1961 (`I-T Act'). Advance tax is a mechanism to pay an individual's annual tax liability in instalments before the specified dates. It is tax paid in advance based on the estimated income likely to be earned in a year.


When does the liability to pay advance tax arise? Individuals can have income from multiple sources. In some cases, all taxes would have been deducted and in some partial. The liability to pay advance tax arises when there is a balance tax liability of Rs 10,000, which needs to be still deposited.


Due dates for payment for the current FY14: Advance tax has to be paid in three instalments for an individual by the following due dates: September 15: Instalment amount to be paid will be 30 per cent of advance tax due.

December 15: Instalment amount to be paid will be 60 per cent of advance tax due.

March 15: Instalment amount to be paid will be 100 per cent of advance tax due.


Mechanism of payment of advance tax: Advance tax can be paid by using tax payment challan (Challan no ITNS 280) and submit ting it with any bank listed with the income-tax de partment. Online payment can also be made through the income-tax depart ment or National Securi ties Depository Limited's website. At the time of pay ment, it should be ensured that the challan has been filled with accurate details of the taxpayer.


Advance tax not applicable in some cases: Advance tax provisions are not applicable for senior citizens having income other than income from business or profession or if the tax payable is up to Rs 10,000.

Penalty for non-payment of advance tax: The I-T Act has specific penal provi sions for non-payment of advance tax instalments.

If during the year an advance tax instalment has not been paid or has been paid for a lower percentage than prescribed, an inter est of 1 per cent per month will be required to be paid under Section 234C of the IT Act. Also, if advance tax paid is less than 90 per cent during the year then an additional interest of 1 per cent per month is payable under Section 234B of the act for the period beginning April 1, 2014, till the date of deposit.


Relaxation in some cases: Ascertaining salary income, interest income and rental income is possible.


However, it may be difficult to estimate income from lotteries, game shows and sale of assets. The I-T Act has special relaxations for such cases. No interest shall be charged for delayed payment of advance tax on such income provided tax is correctly paid in the subsequent instalments when the amount has been estimated properly.


To sum up: It is always prudent to start ascertaining your sources of income and tax liability for the current financial year and deposit advance taxes, if any.


It is certainly advisable to discharge advance tax within the due date rather than pay interest later on.


After all every penny saved is a penny earned.

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 )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. 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

Check while opting for co-tenancy

Posted: 18 Sep 2013 12:35 AM PDT

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)
 

 

 

Whether you are a tenant or a landlord, here's the documentation you need to have in place before you consider the benefits of a shared, rented accommodation

 


In 2007, when Mumbai-based Priya Venkatramani saw an advertisement on a social networking site, she thought it was the answer to her prayers. "I was looking to share a flat since I could not afford one in central Mumbai due to the high rentals. So the ad for a female roommate in the same area seemed like a timely break for me. All had to do was pay around 15,000 as her share of deposit money to the roommate, and 6,000 as her share of rent.


However, it took barely two days before the trouble began. The situation deteriorated to the extent that I wanted to leave the place within the first five days. However, her roommate refused to return the deposit money. The local police told me to approach the courts. Since she did not have any legal documents to back her claim, her friends advised her against taking any legal action and she complied, losing the entire amount in the bargain. What can you do to avoid being in a similar situation? We spoke to several experts to find out about the things you need to consider.

Landlord's nod

The first thing one should check while going for cotenancy in a leased property is whether the arrangement for shared accommodation has the consent of the landlord. Often, a tenant who cannot afford the entire rent keeps a co-tenant without the knowledge of the landlord and the housing society to share the cost. This, however, is completely illegal


In such a scenario, points out Hiranandani, the co-tenant will not have any legal rights if there is a dispute. However, in the case of a family that is living in the leased house, individual agreements with the landlord are not necessary. Residents and Users Welfare Association, the lease agreement should specifically mention co-tenancy. The co-tenant must submit the documents required for the necessary verification to the landlord.

NOC from the housing society

It is important to remember that the housing society in which the property is located also needs to give a separate no-objection certificate to all the co-tenants. "If there are three tenants in the house, the society will need to furnish a separate certificate to each. Moreover, distinct police verification would need to be done for each tenant as mandated by the law," says Ravi Goenka, high court advocate at Goenka Law Associates.

Registering the agreement

According to Goenka, the lease agreements should be notarised and registered at the deputy registrar's office. If the tenant is planning to stay in the property for more than a year, it is mandatory to have it registered. Doing so offers legal security to the landlord in case of any dispute, say, when the tenant refuses to vacate the property. The landlord needs to register the lease agreements of all the co-tenants concerned.

Shared liability

In the case of damage, the liability needs to be borne equally by all the co-tenants, unless specifically mentioned in the lease agreement. So, if you have a lower share of the rent for a smaller room and are eligible to a proportionate share of liability, make sure your agreement clearly states this.

Tax benefits

A co-tenant in an apartment without a valid agreement also misses out on the tax benefits, which he could have received by way of house rent allowance deduction. You will need to submit copies of the rent agreement and receipts to avail of the deduction. Also, if the rent is more than `1.8 lakh per year, the landlord's PAN card will also have to be submitted. If the rent paid is not availed of as deduction, the co-tenant also has the option to claim it while filing his tax returns.

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 )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. 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

NPS Returns

Posted: 17 Sep 2013 11:44 PM PDT

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

 

As stocks tumble and bonds recede, NPS funds have churned out losses in the past year and given insipid returns in the long term

 


The passing of the Pension Bill by Parliament is good news for investors in the National Pension Scheme (NPS). But the news from the market is not very heartening. Despite the rebound in stocks, NPS funds have churned out losses in the past year. While the NAVs of the schemes may be higher than the September 2012 levels, the point-to-point returns hide the true picture. Most NPS investors, including the 27 lakh central and state government employees, who are compulsorily a part of the NPS, invest in the scheme every month and their returns should be calculated accordingly. We looked at the SIP returns of NPS funds in the past year and found that most of them were in the red.
The NPS funds for government employees have, on an average, lost 1.77% in the past year. However, you can't blame the downturn in the equity market. Most of the losses are due to the steep 12-15% fall in government bond prices in the past three months. The NPS funds for government employees are allowed to invest up to 15% of their corpus in equities, but no fund has hit that ceiling. The SBI Pension Fund, the worst performing fund for government employees, had only 6.83% of its corpus in stocks as on 30 June 2013. The UTI Retirement Solutions had only 7.75% in stocks as on 28 March 2013. Both the schemes had almost 50% in government bonds, most of them long-term instruments. The long-term bonds declined steeply in July-August, when the RBI tried to stabilise the rupee.


It is not clear how much the investors have lost due to the equity exposure or allocation to bonds over the past year because the investment mix keeps changing. Besides, not all pension funds disclose the portfolios of the schemes they run.


However, the returns of the NPS schemes for the general public offer some clues on how investments have performed in the last one year. The G class funds, which invest only in government bonds, have generated very poor returns (see table). Far from cushioning the portfolio against volatility, the government bonds have infused greater risk in the portfolios.


Long-term returns also hit You could say that one year is too short a duration for judging a scheme in which one has invested for the long term, possibly 20-25 years. However, the downtrend in stocks and bonds has also impacted the long-term returns of the NPS schemes. Though the historical NAV data for all pension fund managers is not available, we managed to get it for UTI Retirement Solutions. The past five-year SIP returns of the pension scheme for central government employees is 6.58%. The 3-year and 4-year returns of the two other pension fund managers (see graphic) are also far below the 8.67% that the EPF has offered.

Corporate bonds to the rescue

Corporate bonds have managed to salvage the returns of the NPS schemes. In the past year, the returns of C class funds have been flat, but over the past four years, they have given more than 8%. The ICICI Prudential Pension Fund's corporate bond scheme has given SIP returns of 9.35% since its launch in June 2009. However, these bonds are not considered as safe as government bonds.


The poor returns come at a time when the economy is floundering. Some experts say the equity markets could recede. The good part is that bond prices are expected to recover as the rupee stabilises against the dollar and interest rates subside. NPS investors should rejig their allocation to equities, corporate bonds and gilts accordingly.

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 )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. 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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