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Monday, August 14, 2017

Tips to save Income tax for Salaried Person



Often, investment for most individuals begins and ends with tax planning. Although it is pertinent to avail tax breaks, this should not be the sole focus. Start by jotting down your key financial objectives, the tentative time of money requirement and the corpus needed to achieve those goals. One can use tax saving investments effectively, to achieve financial goals. For example, one can take a children's plan that also provides tax benefit. Consider the impact of inflation on your needs. After your first few working years, as income goes up, it is wise to invest beyond one's tax saving investments to achieve your goals. Also, evaluate the life cover requirement, while planning for your taxes. We are giving below a brief on some of the Popular allowance / Exemption and deductions, benefit of which can be taken by the salaried taxpayers to reduce their tax burden.

 
Maximising your tax saving
 
1. Exemptions/reimbursements – Identify the reimbursements available from the company and take maximum advantage of the same. Normal expenses that one incurs could help save tax. Example- Telephone/fuel reimbursements, meal vouchers and company car. A person in lower tax slabs can reduce his tax liability to nil with exemptions alone.

Similarly, salaried employees staying in rented apartments can claim exemption under Section 10(5) of the Act in respect of house rent allowance by making the HRA a component of there salary.
 

Some of The Popularly Known Exemptions/Reimbursements

 
House Rent Allowance
Minimum of –

1. Actual HRA

2. Rent Paid – 10% of Basic

3. 40a% of Basic (Non-Metros) or 50% of Basic (Metros)
House Rent Allowance (HRA) Taxability & calculation
 
Transport Allowance
Rs 800 / Month (1600 Per Month from A.Y. 2016-17)
 
Leave Travel Allowance

Two trips in a block of 4 Yrs Amount not exceeding Air Economy or Rail AC I Fare shall be for shortest distance and for a single destination

Taxability of Leave Travel Allowance (LTA) – Section 10(5)

Medical Reimbursement – Section 17(2) proviso

Up to Rs. 15,000 in aggregate in a year
 
2. Deductions
 
Section 80C allows a maximum limit of Rs 1.50 lakh across investments ranging from provident fund, PPF, infrastructure bonds, fixed deposits (5 years or more), Sukanya Samriddhi Account, NSC, insurance/pension plans, unit linked insurance, equity linked savings scheme etc. It also includes tuition fees of your children and the repayment of principal on your housing loan.  Deduction under section 80C and Tax Planning
 
The interest component on your home loan has a separate limit of Rs 2 lakh. Income Tax Benefits from House Property and Loan
 
 
Medical premia upto a maximum of Rs 15,000 (Rs. 20000/- wef A.Y. 2016-17) qualifies for deduction, with an additional Rs 15,000 for parents. Additional deduction of 20,000/-  (Rs. 30000/- wef A.Y. 2016-17) could be availed in case of a senior citizen.You can claim a separate deduction for medical premium of your parents.  Deduction U/s 80D for Mediclaim Premium to Individual, HUF, Senior Citizens

A person  who have spent money on the maintenance (including medical treatment) of dependant persons with disability, could avail deductions  80DD of the Act. Section 80DD Deduction- Medical expense of disabled dependent.

Individuals paying interest on education loan should obtain the interest payment certificate under section 80E of the Act. Section 80E – Deduction for Interest on education Loan

Those who are suffering from  not less than 40 per cent of any disability is eligible for deduction to the extent of Rs. 50,000/- and in case of severe disability to the extent of Rs. 100,000/- under section 80U of the Act. Deduction U/s. 80U for disabled persons








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

Top 10 Tax Saver Mutual Funds for 2017 - 2018

Best 10 ELSS Mutual Funds to Invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Tata India Tax Savings Fund 

3. Birla Sun Life Tax Relief 96

4. ICICI Prudential Long Term Equity Fund

5. Invesco India Tax Plan

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Sundaram Diversified Equity Fund



Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

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Standard Deviation of a Fund - A statistical measure


It the core of the fund analysis activity lies the twin pursuits of judging returns and risk. Stripped of a lot of the complexity, this task involves determining a fund's average performance over a period of time. Let's get down to basics and take a refresher course on this concept.

Why do we use an average? Why don't we use the actual numbers that the average is calculated from? Obviously, because an average gives us a single value that represents the numbers it is calculated from. It is far easier to use a single number for judgement and comparisons.


But like most things in life, averages can be both good and bad. They can be trustworthy, or they can be worthless, or they can be anywhere between the two. For example, the average age of children in a kindergarten is three years. You could walk into a kindergarten expecting most kids to be more-or-less three years old and you would not be wrong. However, the average age of students in a school is 12 years. You could walk into a school expecting most students to be more-or-less 12 years old and you would be almost completely wrong. Around 90 per cent of the students would NOT be 12 years old -- they would be all ages from 5 to 18 years.


What happened? Was the average wrong? Obviously not, but it was not a very useful figure. It would have been far more useful if you had been told that most of the individual ages in the kindergarten were close to the average but most of the individual ages in the school were far from the average.


This is exactly what Standard Deviation does. It gives you a 'quality rating' of an average. The Standard Deviation of an average is the amount by which the numbers that go into an average deviate from that average. It tells us how closely an average represents the underlying numbers.


Let's put it this way: There was very little risk in assuming that the kindergarten's average represented the real ages but there was a great deal of risk in assuming that the school's average represented the real ages.


Risk! Isn't that what we are trying to figure out? So a recipe for figuring out the risk level of a fund takes shape:

1. Calculate a fund's monthly performance over a long period of time.

2. Calculate the average for all these monthly performances.
3. If the individual monthly performances are very different from the average, then that fund is risky, delivering high returns in some months and poor returns in others. If they are mostly similar, then the fund is a low risk one, with about the same returns month after month.


And how do we find out if mutual funds are 'very different' or 'mostly similar'? By calculating their average, of course. We just calculate exactly how much each month's performance is different from the average and then calculate the average of these differences. This is Standard Deviation. (While the actual formula is complex, this suffices as a simplified explanation.)


But you do need to be careful of one thing -- a high Standard Deviation may be a measure of volatility, but it does not necessarily mean that such a fund is worse than one with a low Standard Deviation. If the first fund is a much higher performer than the second one, the deviation will not matter much.



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

Top 10 Tax Saver Mutual Funds to invest in India for 2017

Best 10 ELSS Mutual Funds in India for 2017

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

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Friday, August 11, 2017

Atal Pension Yojana contribution Tax Benefit for spouse



Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS.

This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is Rs 50,000, over and above the Rs 1.5 lakh limit under Section 80C.

Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS.


You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD.








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

Top 10 Tax Saver Mutual Funds for 2017 - 2018

Best 10 ELSS Mutual Funds to Invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Tata India Tax Savings Fund 

3. Birla Sun Life Tax Relief 96

4. ICICI Prudential Long Term Equity Fund

5. Invesco India Tax Plan

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Sundaram Diversified Equity Fund



Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

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Income Volatility



Uncertainty of income would be worrying for all. In a company, sales growth is tracked closely to understand how well revenue is growing. In an individual context too, income volatility matters. If you are in a government job, income is a given and so is pension. But if you are working with a private enterprise-especially one that's newly formed-your income growth will depend on company policies, and job security can be an issue.


Volatility of income and certainty of job also have an impact on the asset allocation strategy. Investors who have jobs with high incentives components or bonus need to have a more conservative investment strategy than those with jobs that are more certain and less volatile


Income volatility can be due to other reasons as well. Bonuses are an annual windfall and difficult to account for. But many people bunch insurance payments during particular months, and in those months, other investments become difficult. In festival months, sometimes there is irrational expenditure, which can change the overall money plan


For further information contact SaveTaxGetRich on 94 8300 8300

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Thursday, August 10, 2017

BNP BARIBAS LONG TERM EQUITY Fund

Invest BNP BARIBAS LONG TERM EQUITY Fund

A ELSS Tax Saver Fund

This fund has in recent years shrugged off its anaemic initial performance with the help of its current fund manager. Although far from setting the pace in its category, it has delivered decent out performance. It adopts a flexi-cap approach, while maintaining a bias towards large-caps.

The portfolio construction is benchmark agnostic and only moderately diversified, with the fund manager preferring to give meaningful exposure to his high conviction picks.

Although its long-term track record is not particularly appealing, its recent performance suggests that it is on the turnaround path. Currently, there are more proven funds in this category with a better risk-reward profile, but investors should monitor this fund's performance.









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

Top 10 Tax Saver Mutual Funds for 2017 - 2018

Best 10 ELSS Mutual Funds to Invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Tata India Tax Savings Fund 

3. Birla Sun Life Tax Relief 96

4. ICICI Prudential Long Term Equity Fund

5. Invesco India Tax Plan

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Sundaram Diversified Equity Fund



Invest in Best Performing 2017 Tax Saver Mutual Funds Online

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

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SBI Equity Savings Fund

SBI Equity Savings Fund Online




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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 10 Tax Saver Mutual Funds for 2017 - 2018

Best 10 ELSS Mutual Funds to invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. ICICI Prudential Long Term Equity Fund

5. Birla Sun Life Tax Relief 96

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Birla Sun Life Tax Plan



Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

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Wednesday, August 9, 2017

What is in a Credit Score?


Credit Score

A credit score is a three digit numeric summary of your entire credit history. It is prepared based on the information provided in your Credit Information Report. The credit score normally ranges between 300 and 900. Most banks and financial institutions rely on this figure to determine the creditworthiness of potential borrowers. In fact, 79% of the loans approved are for individuals with a score over 750. However, this is a major setback for young professionals, as they are likely to not have a credit score at all. This results in a vicious cycle of being denied credit.




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

Top 10 Tax Saver Mutual Funds for 2017 - 2018

Best 10 ELSS Mutual Funds to Invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Tata India Tax Savings Fund 

3. Birla Sun Life Tax Relief 96

4. ICICI Prudential Long Term Equity Fund

5. Invesco India Tax Plan

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Sundaram Diversified Equity Fund



Invest in Best Performing 2017 Tax Saver Mutual Funds Online

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

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