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Thursday, January 18, 2018

Tax Saving 2018

Invest in ELSS Funds Online and Save Tax






Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Top Performing Tax Saving ELSS Funds. Save Tax Get Rich

Top 10 Tax Saving Mutual Funds of 2018

Best 10 ELSS Mutual Funds to Invest in India of 2018

1. Tata India Tax Savings Fund 

2. Mirae Asset Tax Saver Fund

3. DSP BlackRock Tax Saver Fund

4. Sundaram Diversified Equity Fund

5. Birla Sun Life Tax Relief 96

6. ICICI Prudential Long Term Equity Fund

7. Invesco India Tax Plan

8. Reliance Tax Saver (ELSS) Fund

9. Axis Tax Saver Fund

10. BNP Paribas Long Term Equity Fund


Invest in Best Performing Tax Saver Mutual Funds of 2018

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300


Use Indexation Benefits while computing Capital Gains Tax

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It's the time of the year when individuals would be filing their taxes. People are generally aware of various deductions that reduce the taxable income and hence decrease the tax payable. At the same time, extra income from rent and capital gains made on investments add to the taxable income and increase the tax outgo.

Deductions under section 80C of the income tax Act, including investments in Public Provident Fund, tax-saving fixed deposits, equity-linked saving schemes, life insurance, and others, are widely known. However, there seems to be lesser knowledge and clarity on the deductions that can be availed on the capital gains accrued by selling assets. Understanding this can significantly reduce tax liabilities and guide individuals on taking asset sale decisions prudently.

Indexation is one way that can help in reducing the tax liability of capital gains made by sale of certain assets. Indexation benefit can be availed when an applicable asset (fixed income mutual fund, real estate, unlisted shares and gold) is sold and long term capital gain (LTCG) applies. LTCG is applicable on real estate if it is sold after 2 years of purchase, while it's applicable after 3 years for fixed income mutual fund, gold and unlisted shares.

Indexation means adjusting the price of an asset for inflation. The price of various assets increase over time and this inflation is captured by a broad indicator called Cost Inflation Index (CII). CII is declared for every financial year by the Central Board of Direct Taxes and is used to calculate the indexation benefit on asset sale. Say, we invested Rs1 lakh in a mutual fund in April 2014 and now, after 3 years, the value of our investment is Rs1.4 lakh. Then Rs40,000 is our capital gain.

Inflation and real gain

Say, the price of an asset in 2014 was Rs1 lakh and over 3 years the price has increased to Rs1.15 lakh. This increase in price over time is inflation. 

Further, let's assume that in April 2014, we invested Rs1 lakh to buy this item in future. Now, in 2017, we wish to buy that item but the price has gone up to Rs1.15 lakh. the same time, our investment has grown to Rs1.4 lakh. So what is the real gain in this case?

After purchasing our item for Rs1.15 lakh today in 2017, we are only left with Rs25,000. So the real gain that we have made is Rs25,000 only, and not Rs40,000. In this example, Rs15,000 is the impact of inflation, which is the difference between mathematical gain and real gain.

CII helps us estimate the real gain in various scenarios. Using the CII numbers of the particular years, we can calculate the real gains (adjusted for inflation) for our case. CII data shows that an item worth '240' in FY2014-15 is available for '272' today (FY 2017-18). In that case, an item worth Rs1 lakh in FY2014-15 would be available for 100,000 * 272/240 = Rs113,156. This is also known as CII-adjusted purchase price.

Therefore, our real gain is only Rs 26,844.

Indexation benefit on capital gains with cost inflation index

In the above example, since the investment is being sold after 3 years, LTCG applies and we shall get the indexation benefit.As calculated above, the CII adjusted purchase price of the investment is Rs113,156. As per the income tax rule on debt mutual funds, the investor needs to pay 20% tax on the gains after index adjustment, which is equal to Rs26,844. Hence, the tax outgo (LTCG at 20% after indexation as per I-T rules) = 20 * 26,844 = Rs5,369.


In the above example, if we would have sold the debt fund within 2 years, the gains would have been treated under short term capital gains (STCG) and our tax outgo would have been (assuming 30% tax slab) = 30 * 40,000 = Rs12,000.

If you notice, we have to pay the tax only on the real gains and the tax rate is 20%. The tax saved by virtue of indexation on LTCG is Rs6,631, as compared to STCG.

While filing taxes, individuals should check the assets that they have sold during the financial year and avail the indexation benefit, if applicable. 

It can also be used in planning the asset sale. If your debt fund investments are near to completing 3 years since purchase and you are thinking of selling them, it might be worthwhile to wait for some more time and avail the indexation benefit on LTCG.


SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

For further information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

Buy Life, Health Insurnace and Save Tax

Invest in ELSS Funds Online and Save Tax






Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Top Performing Tax Saving ELSS Funds. Save Tax Get Rich

Top 10 Tax Saving Mutual Funds of 2018

Best 10 ELSS Mutual Funds to Invest in India of 2018

1. Tata India Tax Savings Fund 

2. Mirae Asset Tax Saver Fund

3. DSP BlackRock Tax Saver Fund

4. Sundaram Diversified Equity Fund

5. Birla Sun Life Tax Relief 96

6. ICICI Prudential Long Term Equity Fund

7. Invesco India Tax Plan

8. Reliance Tax Saver (ELSS) Fund

9. Axis Tax Saver Fund

10. BNP Paribas Long Term Equity Fund


Invest in Best Performing Tax Saver Mutual Funds of 2018

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300


DSP BlackRock Tax Saver Fund

Invest in ELSS Funds Online and Save Tax



Why Invest in DSP BlackRock Tax Saver Fund?

·         Equity Linked Savings Scheme: Deduction of up to ₹. 1.5 lakh (per financial year) from total income is available under Section 80C of the Income Tax Act, 1961.

·         Well-diversified equity portfolio: A diligent mix of large cap, mid cap and small cap companies

·         Three year lock-in: Enables participation in the long term growth potential of equity markets

 

DSP BlackRock Tax Saver Fund Performance, Equity composition, Dividend History & Top 5 sectors DSP BlackRock Tax Saver Fund below.


 

Scheme Information

Fund manager

Rohit Singhania

AUM in crores

3833

Exit load

Nil, Lock in for 3 years

*inception date – 18th Jan 2007

 

Performance as on 16th Jan 2018

1 Month

3 Months

6 Months

1 Year

2 Years

3 Years

5 Years

8 Years

10 Years

Since Inception

DSP BlackRock Tax Saver Fund - Growth

2.87%

5.80%

11.25%

30.89%

26.25%

15.15%

20.57%

15.29%

10.37%

15.48%

Nifty 500

4.16%

6.98%

11.13%

32.63%

23.83%

11.35%

14.86%

10.04%

6.40%

10.12%

Nifty 50

3.44%

4.59%

8.15%

27.19%

19.89%

7.91%

12.25%

9.29%

6.06%

14.15%

 

Equity Composition

Large Cap

Mid Cap

Small Cap

Micro Cap

67.2%

11.2%

10%

9%

 

 Dividends since inception in Regular plan – Dividend option

Date

NAV

Dividend per unit

Dividend yield

29-Feb-08

14.755

3.6

24.40%

4-Mar-11

12.096

0.5

4.13%

15-Feb-13

13.081

1.5

11.47%

14-Feb-14

12.313

1.25

10.15%

13-Feb-15

18.437

1.9

10.31%

15-May-15

15.943

0.45

2.82%

21-Aug-15

16.447

0.5

3.04%

20-Nov-15

15.297

0.45

2.94%

12-Feb-16

12.919

0.45

3.48%

20-May-16

14.256

0.45

3.16%

19-Aug-16

16.303

0.4

2.45%

18-Nov-16

15.298

0.4

2.61%

10-Feb-17

16.264

0.4

2.46%

12-May-17

17.117

0.4

2.34%

11-Aug-17

16.975

0.43

2.53%

10-Nov-17

17.76

0.45

2.53%

 

Top 5 sectors

Holdings

Banks

21.55%

Finance

12.85%

Petroleum Products

6.41%

Consumer Non Durables

6.39%

Auto

5.83%

 



Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Top Performing Tax Saving ELSS Funds. Save Tax Get Rich

Top 10 Tax Saving Mutual Funds of 2018

Best 10 ELSS Mutual Funds to Invest in India of 2018

1. Tata India Tax Savings Fund 

2. Mirae Asset Tax Saver Fund

3. DSP BlackRock Tax Saver Fund

4. Sundaram Diversified Equity Fund

5. Birla Sun Life Tax Relief 96

6. ICICI Prudential Long Term Equity Fund

7. Invesco India Tax Plan

8. Reliance Tax Saver (ELSS) Fund

9. Axis Tax Saver Fund

10. BNP Paribas Long Term Equity Fund


Invest in Best Performing Tax Saver Mutual Funds of 2018

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300


Say No to Mutual Fund NFOs

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Suddenly, some mutual fund advisors are in love with New Fund Offers or NFOs. A mutual fund house comes up with a New Fund Offer to launch a new scheme. Most mutual fund advisors do not encourage investing in new schemes because they do not have a performance record.


Advisors argue that it is better to invest in a scheme with a consistent performance record in the same category rather than betting on an unknown entity. Advisors make an exception only when an NFO offers something 'unique' that is not available in the market.
  

So, what has changed? Why are some advisors smitten by NFOs these days? Are advisors recommending NFOs because they are offering something 'unique' or they have something that is not available in the market? The answer is no

Some advisors are pushing plain vanilla equity schemes for reasons better known to them. Sometimes, they tell their clients that the scheme would do well because it is from a great mutual fund house. They also recommend some schemes because they are managed by star fund managers. Mostly, they claim (wrongly) that the NFO theme is going to be flavour of the market in the coming days. It really doesn't matter whether the NFO is a largecap offering or a tax savings scheme.
  

My guess is that people are coming with certain theories because the market is at an all-time high, Trendy Investments. Otherwise, there is no reason to recommend new schemes when you already have established schemes available in the same category

There are many financial advisors who frown upon the new-found love for NFOs among their counterparts. They say that some of these advisors were pushing closed-ended NFOs to their clients with the promise of higher returns, whereas the real reason could be extra commissions for them.

How can you push an NFO when there are established players in the same category. We do not recommend IPOs and NFOs

Critics allege that mutual funds are offering extra incentives to their sales force to push their NFOs. However, they are quick to add that they have no proof to back up their claims, except for the fact that NFOs may offer slightly higher commission to distributors. Some others believe that advisors are trying to cash in on the bullish IPO market, where novices throng for listing gains. They say some investors still subscribe to the bogus theory that investing in a scheme
with a Net Asset Value of Rs 10 is better.
  
To sum up, you should avoid NFOs unless they offer something unique. It is always better to invest in a scheme with a proven track record. Sure, the past performance may not be repeated. But the consistent performance of a scheme during different market cycles give you a lot of comfort.   

Here are a few quick pointers that would help you to corner your mutual fund advisors. Whenever your advisor tries to sell you an NFO on the pretext of some new theory, you may try these counterarguments.

Claim: The fund house is great
Counter claim: There are many great fund houses in the market.

Claim: The fund manager is great
Counter claim: There are many great fund managers in the market.

Claim: ELSS scheme is great for tax planning.
Counter claim: I know that, but there are many established ELSSs available in the market.

Claim: Largecap/midcap/smallcap/multicap schemes are going to do well in the coming days.   
Counter claim: Okay, but is it necessary to invest in a new largecap/midcap/smallcap/multicap scheme when there are many established schemes in the respective category available in the market.





SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich
For further information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300
OR
You can write to us at
Invest [at] SaveTaxGetRich [dot] Com 

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