Prajna Capital

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• Inflation Indexation Bonds
• SBI Dual Advantage Fund - Series I
• How much is your Tax Liability?

Inflation Indexation Bonds Posted: 09 Jan 2014 03:55 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)     With the Reserve Bank of India declaring its first tranche of inflationindexation bonds, the Inflation-Indexed National Savings Certificate Cumulative (IINSC), linked to the Consumer Price Index from Monday, investors can look forward to the product that can be used as a hedge against gold. The interest rate on offer will be 150 basis points more than the composite inflation rate. For the month of December, the rate of inflation would be 9.8 per cent (September combined inflation). Consequently, the interest rate on offer is 11.44 per cent. But before you jump to buy these bonds, here are some things you need to know. Things that could start from the very beginning. While it is proposed that the sale will be undertaken through the banks — nationalised and three private sector HDFC, ICICI and Axis or Stock Holding Corporation of India who will open what are called Bond Ledger Accounts (BLAs)? Very few retail consumers currently hold such accounts. Also, it is not known how cumbersome it is going to be to open such BLAs or how much it will cost to maintain it annually. Second, there is a complete lack of clarity about the redemption process. RBI has said early redemption can be made on two specific dates in a year. But it could lead to procedural problems. While bankers say RBI will come to an average of inflation rates for the six months and pay 150 basis points over and above it, the question is how the taxman will treat it. At present, if you invest in a three or five- year cumulative fixed deposit, you need to get an interest rate certificate after deducting tax deductible at source (TDS), even though there is no income in the year, and submit it to the tax department. Similarly, in the case of such bonds, though there won't be a cash flow, there would be a tax to be paid on the returns. As the interest is compounded every six months, there is no cash flow at all possible for 10 years, unless you redeem early. In fact, most investors will have to pay tax liability from their pocket, despite not getting the interest payment. The benefit comes from the rate of interest is sounding impressive because competing products like fixed deposits (five year or more) or tax- free bonds are offering around nine per cent. In case of the former, there are benefits under Section 80C (up to maximum benefit of ₹ 1 lakh) of investing. In the latter, the interest paid is tax- free. The interest on this issue (although only accrued and not paid to the investor) would be subject to tax, based on the marginal tax rate of the investor. Assuming a 10 per cent, 20 per cent and 30 per cent marginal tax rate, the post- tax returns would be nine per cent, eight per cent and seven per cent, respectively. Hence, the issue would be beneficial only for an investor in the 10 per cent marginal tax bracket and not for an investor in the 20 per cent or 30 per cent one. Also, if the interest rate goes down because of the floating nature of the product, investors will stand to lose. That is why, these are best suited for investors with along time investment horizon and those not looking at a regular income. One benefit is investors paying higher taxes will also get a long- term capital loss for tax purposes in the year of redemption of the bond ( whether early redemption or on maturity), which they can set off against any other longterm capital gains they might have in the year of redemption. While the jury is still out on whether these products will work out well for the retail investor, Raghavendra Nath, managing director, Ladderup Wealth Management, believes once the economy improves the government may stop issuing infrastructure bonds. But inflationlinked bonds will continue as an investment option. They are a good option for retail investors who mgiht not understand equities, which is the other investment that can beat inflation. While the rate of interest is attractive, you will have to pay tax annually like in cumulative fixed deposits. Check if it interests you These are best suited for investors with a long- term horizon and those looking at a regular income. Investors paying higher taxes will also get a long- term capital loss in the year of redemption SPECIFICATIONS:   The IINSS- C issue will open on Dec 23 and close on Dec 31. RBI could also close it earlier The minimum limit for investment is ₹ 5,000 and the maximum limit is ₹ 5 lakh for an applicant The bonds will be issued at par Eligible investors include individuals, aHindu undivided family, charitable institutions registered under Section 25 of the Companies Act, central and state government universities Interest rate would comprise two parts — a fixed rate of 1.5 per cent per annum and an inflation rate based on the CPI, which will be floating The floating rate will be compounded in the principal on half- yearly basis and paid at maturity The final combined CPI ( urban + rural CPI) will be used with a lag of three months, that is, the final combined CPI for September 2013 will be used as a reference CPI for all days of December 2013 Although the maturity period for the bonds is 10 years, early redemptions will be allowed after one year from the date of issue for senior citizens ( 65 years and above) and three years for others. However, this will attract penalty charges at the rate of 50 per cent of the last coupon payable. Early redemptions can be made only on coupon dates IINSS- C would be distributed through public sector banks and three private sector banks ( ICICI Bank, HDFC Bank and Axis Bank) and Stock Holding Corporation of India There is no tax benefit on these bonds, neither tax exemption on investment as in case of FDs nor taxfree returns as in case of tax- free bonds. The interest will be added to the investor's income and taxed in the bracket applicable 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 Plan Invest Online HDFC TaxSaver Invest Online DSP BlackRock Tax Saver Fund Invest Online Reliance Tax Saver (ELSS) Fund Invest Online Birla Sun Life Tax Relief '96 Invest Online IDFC Tax Advantage (ELSS) Fund Invest Online SBI Magnum Tax Gain Scheme 1993 Invest Online Sundaram Tax Saver Invest 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 MutualFunds Invest 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 Dual Advantage Fund - Series I Posted: 09 Jan 2014 03:23 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   SBI Mutual Fund announced the NFO of SBI Dual Advantage Fund- Series I. The scheme will open for subscription on January 06, 2014 and close on January 20, 2014.   For further information on the topic you can CONTACT Prajna Capital on 94 8300 8300 by leaving a missed call.     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 Invest Any Mutual Fund Online   Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------   Best Performing Mutual Funds Largecap Funds             Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds         Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. Mid and SmallCap Funds          Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Birla Sun Life Dividend Yield Plus SBI Emerging Businesses Fund HDFC Mid-Cap Opportunities Fund ICICI Prudential Discovery Fund D. Small and MicroCap Funds   Invest Online DSP BlackRock MicroCap Fund 2.       Franklin India Smaller Companies E. Sector Funds          Invest Online Reliance Banking Fund Reliance Banking Fund ICICI Prudential Banking and Financial Services Fund F. Tax Saver Mutual Funds      Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund G. Gold Mutual Funds        Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Birla Sun Life Gold H. International funds         Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

How much is your Tax Liability? Posted: 09 Jan 2014 02:20 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300     Know much is your tax liability   It is an easy and simple process to file your returns. Make sure you have the necessary documents to file your returns   Documents needed * You need to attach documentary support for tax deducted at source, investments or payments made that allow you to claim deductions and tax rebates and employer's certificate in Form 16A. * The income tax year or assessment year is the year in which income of the previous year is to be assessed. The financial year following a previous year is called the assessment year in relation to that previous year. Thus the assessment year for the previous year 2009-10 is 2010-2011. * An assessment, therefore, comprises of two stages Computation of total income, and Determination of the tax payable thereon. * On completion of both these stages, an assessment is said to be made. How much tax you need to pay? Where to pay Income Tax * Through online deposit * Through Nationalised banks How to pay Income Tax * Self filing * Auditor or Chartered accountant or Tax Return Preparers * Online filing Transaction mode to pay tax * Cash * Cheque * Money Transfer Considerations when filing returns * Right tax computation * Right details such as PAN, bank account number, address and name * Payment by the due date Visit the Income Tax Dept / NSDL website. https://onlineservices.tin.nsdl. com/etaxnew/tdsnontds.jsp * Click on the "CHALLAN NO./ITNS 280 * On this page choose (0021)INCOME-TAX (OTHER THAN COMPANIES) * Type your Permanent Account No (PAN) * Choose Assessment Year: choose 2012 - 2013 * Fill up all other details requested For Type Of Payment choose (300)SELF ASSESSMENT TAX Choose your Bank Name where you have online banking, so that you can pay your taxes Click on Proceed, (located at the bottom of the web page) Once you have paid your taxes, Income tax department will issue you a receipt. Using this receipt please fill up our Advance Tax or Self Assessment Tax page you can continue filing returns through the online interface for preparing and processing your returns. Digital signature It is a private key which ensures the authenticity of an electronic document, which may be an e-mail or a spreadsheet. Digital signature is issued by the Ministry of Corporate Affairs. So, if you have a digital signature, go to https://incometaxindiaefiling.gov.in/portal/ individual_huf.do. Choose the respective form, read the instructions mentioned in the excel file. Fill the sheets and save it on your computer. To upload it, go to https://incometaxindiaefiling.gov.in/portal/ uploadXML.do?assyr=2010. Create a user ID and follow the instructions that come on the screen. If you don't hold a digital signature, don't worry. It's not mandatory that all tax filers possess a digital signature. In fact, for those who don't have one, the process is more or less the same as above, except that it would not be completely paper-free. Once you are done with uploading the excel file from the income tax department's site, you need to submit ITR-V (or income tax verification form). This can be downloaded fromhttp://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/ay2008-09/FormITR-V.pdf). * ITR V acts like a proof of filing. * Fill in the form and mail it in an envelope to "Income Tax Department-CPC, Post Box No.1, Electronic City Post Office, Bangalore-560100, Karnataka" within 30 days of e-filing. * You can expect to receive an e-mail from the income tax department, acknowledging the receipt of ITR-V. * This is the final acknowledgement and concludes the e-filing process.   For further information on the topic you can CONTACT Prajna Capital on 94 8300 8300 by leaving a missed call.   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 Invest Any Mutual Fund Online   Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------   Best Performing Mutual Funds Largecap Funds             Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds         Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. Mid and SmallCap Funds          Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Birla Sun Life Dividend Yield Plus SBI Emerging Businesses Fund HDFC Mid-Cap Opportunities Fund ICICI Prudential Discovery Fund D. Small and MicroCap Funds   Invest Online DSP BlackRock MicroCap Fund 2.       Franklin India Smaller Companies E. Sector Funds          Invest Online Reliance Banking Fund Reliance Banking Fund ICICI Prudential Banking and Financial Services Fund F. Tax Saver Mutual Funds      Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund G. Gold Mutual Funds        Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Birla Sun Life Gold H. International funds         Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF 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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