Skip to main content

Save Tax and Grow Wealth

There's a slight nip in the air and there are a galore of offers from e-commerce bigwigs; the festive season it seems has arrived. While this is certainly a time to splurge and be merry, do consider putting away a little bit of your funds to save tax.

  • Open a PPF account – Need a secure investment that gives tax free returns? Consider PPF. Withdrawals from PPF are also exempt from tax. You can deposit a maximum of Rs 1,50,000 in a year and earn a tax free interest of 8.7%. Amount deposited each year is allowed a deduction under section 80C. Section 80C allowed you to reduce your taxable income by the amount you deposit. PPF matures after 15 years, and if you continue to put away money in it, you'll have a large corpus on maturity.


  • Make additional deposits to EPF – 12% of your basic salary is deducted each month and deposited in EPF, employer also contributes to it. Find out from your company if they allow you to make additional deposits to your EPF. A lot of companies allow employees to put in a higher % in their EPF. A spare Rs 10,000 may get spent from your pocket, but will be put to good use when you keep adding to your EPF kitty. If you plan to complete 5 years at your current organisation, you would land up an even larger sum by these extra deposits. EPF withdrawals are tax free after 5 years of employment.


  • Consider an ELSS fund – Equities have had a bear phase recently and it seems like a good time to enter. If you don't want your money to get locked for long term, look up a fund house that has a good performance and buy an ELSS mutual fund. ELSS purchases are also covered in Section 80C. And come with a lock in of 3 years. You can also enrol into a SIP to get into ELSS. A SIP or systematic investment plan means that you make small deposits monthly (or some other interval) instead of a lump sum. Your returns shall be fully tax free besides the Section 80C benefit.


  • Buy a medical insurance – Consider securing the health of your family via a medical insurance. A deduction of Rs 25,000 is allowed under section 80D. If you have parents who are senior citizens, you can claim Rs 30,000 to secure their health. For uninsured super senior citizens (more than 80 years old) medical expenses up to Rs 30,000 can be claimed under section 80D. Do note that you can claim a maximum of Rs 30,000 in this section, so plan it well. If your parents are super senior citizens you may claim Rs 30,000 medical expenses for them, while your spouse can insure you as a couple & kids for Rs 25,000. That way, both of you can take the benefit.
Make the most of the festive season! Now that six months of the financial year have gone by, do spend some time to plan your taxes.



------------------------------------------
Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 4 Tax Saver Mutual Funds for 2016 - 2017

Best 4 ELSS Mutual Funds to invest in India for 2016 - 2017

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. BNP Paribas Long Term Equity Fund



Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact Prajna Capital on 94 8300 8300

--------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Call us on 94 8300 8300

---------------------------------------------


Popular posts from this blog

Birla SunLife Manufacturing Equity Fund

The Make in India program was launched by Prime Minister Naredra Modi in September 2014 as part of a wider set of nation-building initiatives. It was devised to transform India into a global design and manufacturing hub. The primary motive of the campaign is to encourage multinational as well domestic companies to manufacture their products in India. This would create more job opportunities, bring high-quality standards and attract capital along with technological investment to bring more foreign direct investment (FDI) in the country.   Why India as the next manufacturing destination?   The rising demand in India along with the multinational's desire to diversify their production to include low-cost plants in countries other than China, can help India's manufacturing sector to grow and create millions of jobs. In the words of our Honourable Prime Minister- Mr. Narendra Modi, India offers the 3 'Ds' for business to thrive— democracy,...
Read more

Total Returns Index brings out real Equity Funds Performers

From February, equity mutual funds have to change their benchmarks to account for dividend payments. Until now, funds used price-based benchmarks alone. TRI or total return indices assume that dividend payouts are reinvested back into the index. What this does is lift the overall index returns, because dividends get compounded. For example, the Sensex TRI index will consider dividend payouts of its constituent companies while the Nifty50 TRI index will consider dividends of its constituents. Using TRI indices as benchmarks comes on the argument that an equity funds earn dividends on the stocks in its portfolio, which they use to buy more stocks. Therefore, using an index that also considers dividend reinvestment would be a more appropriate benchmark. Shrinking outperformance With a stiffer benchmark, it is obvious that the margin by which an equity fund outperforms the benchmark would shrink. Rolling one-year returns from 2013 onwards, the average margin by which largecap funds out...
Read more

Stock Review: Havells

HAVELLS India's stock performance has been muted in the past three months, in line with the weak broader market. But, given the turnaround in its overseas subsidiary and the launch of new products in its consumer durable business, the company's stock may undergo a re-rating.    Havells is India's leading consumer electrical goods company, with consolidated sales of . 5,527 crore in the past four quarters. Its wholly-owned subsidiary Sylvania, which makes lighting and fixtures, has established brands in European, Latin American and Asian markets. Sylvania repre sented nearly half of the company's consolidated revenues in the first half of FY11.    Sylvania's poor financials hit Havells' consolidated performance in FY10. But, this has changed in the cur rent fiscal. Havells has reduced fixed costs of Sylvania by exiting from unprofitable businesses and outsourcing manufacturing to low-cost locations such as India and China. In the September 2010 quarter, Sylv...
Read more

How to generate a UAN Online

Best SIP Funds Online   In order to make Employees' Provident Fund (EPF) accounts portable, the Employees' Provident Fund Organisation (EPFO) had launched the facility of Universal Account Number (UAN ) in 2014. Having a UAN is now mandatory if you have an EPF account and are contributing to it. So far, you got this number from your employer and every time you changed jobs, you had to furnish this number to the new employer.  However, in order to make it easier for you to get a UAN , and without your employer's intervention, the EPFO now allows you to go online and generate a UAN on your own. This facility can be used by freshers, or new employees, who are joining the workforce as well as by employees who have older EPF accounts but do not have a UAN as yet. As a new employee, you can simply generate a UAN and provide the number to your employer at the time of joining, when you need to fill up forms for your EPF contribution. As per a circula...
Read more

Mutual Fund Review: Reliance Regular Savings Equity

    Despite high churn, Reliance Regular Savings Equity has managed to fetch good returns   In its short history, this one has made its mark. Though its annual and trailing returns are amazing, the fund started off on a lousy note (last two quarters of 2005). It managed to impress in 2006 and was turning out to be pretty average in 2007, till Omprakash Kuckian took over in November 2007 and wasted no time in changing the complexion of the portfolio. Exposure to Construction shot up to 28 per cent with almost 21 per cent cornered by Pratibha Industries and Madhucon Projects . Exposure to Engineering was yanked up (18.50%) while Financial Services lost its prime slot (dropped to 6.69%) and Auto was dumped. That quarter (December 2007), he delivered 54.66 per cent (category average: 25.70%).   When the market collapsed in 2008, thankfully the fund did not plummet abysmally. But even its high cash allocations could not cushion the fall which hovered around the category average. ...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now