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- Birla SL Banking & Financial Services Fund
- Hospital network for cashless insurance scheme
- What Is The Taxability Of Rental Income Of That Second Home?
| Birla SL Banking & Financial Services Fund Posted: 16 Dec 2013 04:08 AM PST Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
WHAT IS IT:
Birla Sun Life Banking and Financial Services Fund is an open-ended scheme. It will attempt to give long-term capital appreciation from investing in shares of companies engaged in banking and financial services.
The NFO period is from November 25 to December 9. Minimum subscription in the NFO period is Rs 5,000.
The fund will be benchmarked to the performance of CNX Finance index.
Exit load for redemptions within a year is 2 per cent and between one and two years is 1 per cent.
Other than banks and NBFCs, the scheme will invest in promising companies within the financial services sector, such as housing finance, insurance, rating agencies and stock broking, microfinance companies and wealth management com panies, among others.
Investing in this scheme would be meaningful only if one has over an investment horizon of three years because of high exit loads in first and second year.
Investing in a sector specific fund could poten tially involve greater volatility and risk. Also concentration risk is expected to be high. The scheme being sector specific will be affected by the risks associated with the banking sector and investments in financial services. However, banking and financial services sectors have potential for growth. As on October 31, fund's benchmark CNX Finance index has given a compounded return of 17.3 per cent, against 12.9 per cent given by Nifty, but that may not be replicated in future.
Birla SL MF's past track record in managing sectoral equity funds is limited to its IT fund, Birla SL New Millenium Fund. This and two other IT sectoral funds of other mutual funds are benchmarked to BSE Tech Index, as per Capitaline NAV database. Performance of Birla SL's fund is discouraging. As of NAV of November 21, for the three IT schemes, it was ranked last on fiveyear returns with a CAGR of 20.67 per cent, lower than 21.77 per cent of DSPBR Technology and 36.43 per cent of ICICI Pru Technology Fund. On three-year returns, however, Birla SL New Millenium Fund was ranked second, with a three-year CAGR of 6.87 per cent. On oneyear returns comparison, the fund was again ranked second, with a one-year return of 39.04 per cent. The benchmark BSE Tech index's CAGR was 19.63 per cent (five years), 9.28 per cent (three years) and 40.19 per cent (one year). Thus, Birla SL MF's performance in thematic equity funds is not encouraging.
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 )
------------------ Best Performing Mutual Funds
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| Hospital network for cashless insurance scheme Posted: 16 Dec 2013 02:42 AM PST Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
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 )
------------------ Best Performing Mutual Funds
| ||||||||
| What Is The Taxability Of Rental Income Of That Second Home? Posted: 16 Dec 2013 01:06 AM PST Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
One wonders what are the tax implications of the rental income on the second home which is rented out .Let us assume Mr Mahesh 40 Years of age owns two houses in Mumbai. One at Vashi in Navi Mumbai and the other home at Borivali West in Mumbai. Mr Mahesh stays at the Borivali flat and gives the Vashi Flat for rent at the rate of INR 3 Lakhs per annum after deducting municipal and other standard taxes. So What Are The Tax Implications In This Case? Mr Mahesh will have to pay the tax on his rental income earned on his Vashi Flat .If Mr Mahesh a salaried employee earns INR 8 Lakhs and receives rent of INR 3 Lakhs the total income earned by Mr Mahesh is INR 11 Lakhs per annum and he is taxed at the rate of 30%.Mr Mahesh makes use of deductions of INR 1 Lakh under Section 80 C for investments made in the Public Provident Fund and deductions of INR 35000 under Section 80 D for the health policies taken for himself his elderly parents and his spouse. Now his taxable income is INR 9.65 Lakhs and this amount is taxable at 20%.
Let us consider the notional rent for the Borivali Flat is INR 5 Lakhs per annum and the notional rent for the Vashi Flat is INR 3 Lakhs per annum. In this case Mr Mahesh has the option to select any of the properties as self occupied. The other property will be treated as deemed to be let out and taxed as per the estimated annual rent. Mr Mahesh stays in the Vashi flat and his family stays in the Borivali Flat. Mr Mahesh has the option to treat either of the two flats as self occupied and the other is deemed to be let out. The Flat considered to be let out will be taxed as per the estimated yearly rent. Mr Mahesh will treat the Borivali flat as self occupied because the notional rent is INR 5 Lakhs which is higher than the notional rent of the Vashi apartment which is INR 3 Lakhs. So Mr Mahesh will have to pay tax on the estimated rental income of INR 3 Lakhs after deducting municipal and standard taxes on his Vashi Flat. Let us assume a third case in which one of the flats is self occupied and the other flat is vacant .Then even though this Flat does not generate any rental income Mr Mahesh has to pay taxes on the estimated rental value of the unoccupied flat.
Deductions are available as per the Income Tax act 1961 for the municipal taxes paid during the year. All expenses such as insurance, repairs and annual maintenance of the house avail a deduction of 30% as a flat standard deduction irrespective of the expenses actually incurred If a loan is taken for purchasing the second property then the annual interest paid on the loan is available as a deduction. This deduction is available irrespective of whether the property is given for rent or not. In case the property is given on rent the entire interest amount is tax deductible irrespective of whatever this amount is. In case the second house is not rented and kept vacant then the interest amount on your home loan which is deductible is INR 1.5 Lakhs .One needs to note that wealth tax has to be paid on the second property as only a single unit is exempt from wealth tax. However if the second house is given on rent for a minimum period of 300 Days in a year no wealth tax needs to be paid.
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 )
------------------ Best Performing Mutual Funds
|
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