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- Save Tax With Mutual Funds
- What is the difference between Form 15G and the Form 15H?
- FMPs are attractive Investments - High Returns and Tax Benefits
| Posted: 18 Feb 2014 04:12 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Mutual funds are ideal as long term investment avenues for retail investors. To encourage investments in this avenue, the Government of India offers investors a spate of tax benefits thus ensuring maximum benefit from mutual funds held beyond a year.
Sample some of the key benefits and refer to the table for a detailed list of tax rates for different types of schemes
· Avail deductions under Sec 80C of the Income Tax Act by investing up to a maximum of Rs. 1 lakh in designated Equity Linked Savings Schemes (ELSS). Such investments have a compulsory lock in period of 3 years.
· First time retail investors in equity with a gross total income of up to Rs. 12 lakh can invest up to Rs. 50,000 in specific MF schemes under Rajiv Gandhi Equity Savings Scheme (RGESS) and benefit from deductions under Section 80 CCG
· No tax is to be paid for redemption of units of an equity scheme held for over a year
· In case of non-equity mutual funds, benefit from indexation (refer table below)
· No tax is to be paid on dividends. The fund deducts a dividend distribution tax at source in case of non-equity schemes
· In case of Equity Oriented Scheme, no dividend distribution tax is deducted at source by the fund house
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
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
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
2. Franklin India Smaller Companies E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
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 |
| What is the difference between Form 15G and the Form 15H? Posted: 18 Feb 2014 02:53 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Declaration in the Form 15G can be made by an individual or a person (not being a company or firm). Hence, a company or Firm cannot submit declaration in the Form 15G or in the Form 15H. Form 15G is meant for Resident Individual who is below 60 years of age. 15H is meant for individuals i.e. for a Senior Citizen i.e. Individual who is of 60 years of age or more during the financial year.
Eligibility for 15G/H if in case of individuals:-
Form 15G:
The Individual should be less than 60 years of age at the time of furnishing the declaration.
The total income during the financial year (i.e. year 2013-14) should not exceed the basis exemption limit as per income tax ie. Rs.2,00,000/-. If the total income during the financial year exceeds or is likely to exceed Rs. 2,00,000 then the individual cannot submit Form 15G.
Form 15H:
If the individual is 60 years but less than 80 years of age, then the total income during the financial year (i.e. year 2013-14) should not exceed the basic exemption limit as per income tax ie. Rs. 2,50,000/-.
If the individual is 80 years of age or more, then the total income during the financial year (i.e. year 2013-14) should not exceed the basic exemption limit as per the income tax ie.Rs. 5,00,000 /-.
Eligibility for 15G if in case of persons other than Individuals:
15G can be submitted by a HUF, Association of persons, Body of individuals & Artificial Juridical Persons, if the total income during the financial year (i.e. year 2013-14) does not exceed the basic exemption limit as per the income tax ie. Rs. 2,00,000/-.
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
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
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
2. Franklin India Smaller Companies E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
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 |
| FMPs are attractive Investments - High Returns and Tax Benefits Posted: 18 Feb 2014 01:58 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Over the next two months, a host of fixed maturity plans (FMPs) are coming for redemption. And, investors can expect better interest rates if they re- invest the proceeds.
Interest rates on bank certificates of deposit (CDs), in which most FMPs invest, have inched up to around 9.8 per cent annually, from 9.6 per cent a few months earlier. Experts say the rates from FMPs have never been better. Hence, go beyond the traditional 14- month tenures to longer ones of 26 and 38 months, say experts, as the yields might not remain so high for long.
They also say investors shouldnt try to time their investment or look for rate spikes. That would mean keeping money idle in lower- yielding fixed income accounts for a brief period. The rates are quite attractive now. Investors who feel yields could move higher are trying to time the market. But they might miss on accruing interest. Better a disciplined approach for all periods. FMPs aim to generate a steady return over a fixed tenure, typically from a month to three years, and are similar to bank fixed deposits (FDs). They protect an investor from interest rate volatility by investing in fixed securities, with maturities as that of the scheme. For instance, if the scheme has a 14- month tenure, the fund will invest in fixed income paper that matures in 14 months. For now, FMPs maturing in 14- 15 months are the most popular, as these offer double- indexation benefits.
Investors can make taxfree returns from FMPs, compared to an FD, which is taxable. For example, an investor in a 14- month FMP in February 2014 that will mature in April 2015 can get capital indexation benefits under the capital gains tax rules for a period of two years. This structure makes these funds more popular than FDs. In a recent study on returns, CRISIL noted FMPs gave better returns than FDs of one to three years, with 92 per cent beating FD returns over a similar time frame. And, due to the tax- efficiency of FMPs, post- tax returns are even better.
Check the underlying credit quality as well. For instance, FMPs typically invest in bank CDs, non- bank finance companies, real estate and other fixed income assets. If an FMP is investing largely in a bank CD or high- quality rated paper, it’s considered to have a good credit profile. Experts also say one shouldnt compromise on credit quality and chase very high yields. Investors shouldnt take more risk for a marginal rise in returns. Also, budget your cash flows if investing for longer durations. Investors should budget their investments, as FMPs come with a lock- in. If one doesnt require funds for that period, only then should one go for FMPs
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
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
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
2. Franklin India Smaller Companies E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
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 |
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