Do you know if you Delay Property Registration then you can also Save Tax :). At first instance it sounds very confusing and contradictory but it is true. Recently one of my client Ms. Rashmi was planning to register resale property in Ahmedabad. I asked her whether she can wait till April'15 for property registration and she told me that it is feasible. I suggested her to Delay Property Registration till April'15 and she can save tax by doing so. Any property registration during last quarter of Financial Year i.e. from Jan to Mar should be done after due diligence. Reason being we are towards ... Read More
Senior Citizen Savings Scheme
"Senior Citizen Savings Scheme" as my father searched this phrase on internet today morning, he found numerous posts on this subject. All the posts were more or less. In short Cut, Copy and Paste of each other. He told me that if i read one, it means i read all. Its quite unfortunate that non-finance person is left in a lurch. All articles on Senior Citizen Savings Scheme only highlighted the features of scheme. There is no guidance available whether to invest or not?. What are the pros and cons of the Senior Citizen Savings Scheme?. It inspired me to write today's post on "Senior Citizen ... Read More
Voluntary Provident Fund
Voluntary Provident Fund or VPF is most useful yet most neglected tax saving option. Financial Planners or Relationship Managers will not suggest this as there are no commissions, no targets and no incentives. This option is available only to salaried individuals who are member of EPF or Employee Provident Fund. Every month, 12% of basic salary is compulsory deduction towards contribution to EPF. Ref to EPF contribution, not many people are aware that EPF is eligible for dedcution u/s 80C and is part of overall capping of Rs 1.5 lakh u/s 80C. For example, if you are contributing Rs 50,000 ... Read More
ULIP – Investment or Insurance?
I am always confused whether to refer ULIP as Investment product or Insurance product. It cannot be attributed to my financial illiteracy. ULIP is a mix of both investment and insurance i.e. Jack of all trades. Till date ULIP has a roller coaster ride. Once it was darling of both buyer and the seller then it was most hated product which no investor wanted to touch. Thanks to IRDA for clearing most of the mess around ULIP. Acche Din of ULIP are back with dream run of stock market since Sep'13. In my opinion, fate of ULIP is linked to performance of stock market. Like Mangoes & Strawberry, ... Read More
Tax Saving FD
Tax Saving FD (Fixed Deposit) is another popular tax saving scheme for risk averse investors. As financial year is coming to an end and its time for income tax investments therefore based on request from my readers i am writing posts related to income tax savings schemes. This article on Tax Saving FD is third in series as i received 3rd highest queries on this particular tax saving scheme. Prime facie Tax Saving FD looks very lucrative investment option to save Income tax under section 80C but we have to take 360 degree approach. The biggest advantage of Tax Saving FD is its maturity ... Read More
Invest Smartly in Equity Linked Saving Schemes (ELSS)
ELSS or Equity Linked Saving Schemes is one of my favorite Tax Savings Instrument. ELSS is a type of Equity Mutual Fund in which you will get Tax benefits under Section 80C of Income Tax Act. ELSS has shortest lock-in period of just 3 years among all the Tax Saving Schemes. Like other Equity Mutual Funds, ELSS also invest in Stock Market specially in Equity segment. It's a high risk investment because of equity exposure & returns are not fixed like other tax saving schemes. You can invest any amount in ELSS but tax benefit under section 80C can be availed for max amount of Rs 1,00,000 ... Read More