Skip to main content

Budget Changes that will affect your finances in FY14

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

Changes that will affect your finances in FY14

THE finance minister has proposed many measures to promote inclusive growth in the recently announced budget 2013. In his speech, he reiterated that clarity in the tax laws and non-adversarial tax administration is of paramount importance.

The common man, who is reeling under soaring inflation and had high expectations from the finance minister, doesn't have many reasons to cheer. Following are the changes in budget 2013 that will impact an individual: Tax rebate of Rs 2,000: The finance minister provided a marginal tax relief for individual taxpayers in the lower income bracket.


He provided a tax rebate of Rs 2,000, or the actual amount of tax, whichever is less, for resident individual having income up to Rs having income 5 lakh. He did not change the tax rate and tax slabs. As education cess will also be applicable, effective tax benefit will be Rs 2,060.


Additional deduction of Rs 1 lakh for interest on home loan: It has been proposed to provide additional deduction of Rs 1 lakh towards interest on home loan up to Rs 25 lakh taken during FY14. The proposed deduction will be available only to taxpayers buying their first house costing up to Rs 40 lakh. If the entire interest cannot be claimed in the first year, the differential amount can be claimed in the subsequent year also. Benefit of RGESS widened: Budget 2013 has also liberalised incentive available under the Rajiv Gandhi Equity Savings Scheme (RGESS) by pro posing that deduction for investment by new retail investors will be allowed for three consecutive years vis à-vis existing cap of one year. The deduction will be available to taxpayers having income up to Rs 12 lakh, compared with Rs 10 lakh at present. Also, investment in listed units of an equity oriented mutual fund will also be eligible for deduction. This will result in a tax saving of Rs 23,175 in three years time vis-à-vis Rs 5,150 in one year earlier. Tax on super rich: The finance minister has levied a one-time additional surcharge of 10 per cent on taxpayers having income exceeding Rs 1 crore. This levy will impact 42,800 individuals, with an additional outflow of about Rs 3.2 lakh. It will also impact firms if they have employed expatriates and are paying more than Rs 1 crore and also picking their tax liabilities.


Items that will get costlier: There are some products on which indirect taxes are levied and will become costlier like SUV's, luxury cars, yachts, mobile phones exceeding Rs 2,000, set-top boxes. The food bill in air conditioned restaurants, cigarettes and cigar will also become costlier.

Other changes affecting individuals:

■ Return of income filed without payment of self-assessment tax to be treated as defective return.

■ TDS at 1 per cent on transfer of immovable property exceeding Rs 50 lakh in value.

■ Reduction in rates of securities transaction tax.

■ Introduction of annexure less and paperless e-filing of wealth tax return.

■ 100 per cent deduction for donations to National Children Fund.

To sum up: The finance minister has done a balancing act by taxing the super-rich and by giving some benefits to the common man. While the expectations are always high, the finance minister has to reduce inflation and manage the fiscal and current account deficit that are more alarming.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

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 in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax PlanInvest Online
  2. HDFC TaxSaverInvest Online
  3. DSP BlackRock Tax Saver FundInvest Online
  4. Reliance Tax Saver (ELSS) FundInvest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) FundInvest Online
  7. SBI Magnum Tax Gain Scheme 1993Invest Online
  8. Sundaram Tax SaverInvest Online
  9. Edelweiss ELSS Invest Online

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

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFundsInvest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

Save Tax With Mutual Funds

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds 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 un...
Read more

How much to invest in gold ?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) Let your motivation dictate the share of the yellow metal in your portfolio Enough has been said and written about gold as an investment option. The latest argument is that the craze for gold among Indian households is endangering our country's balance of payments. The policymakers are busy trying to find ways of discouraging investment in gold, but if households keep the common good in mind, they would be paying the market price for gas cylinders as they do for, say, their mobile phone bills. After all, private decisions are driven by private motives. So, how should a household look at gold from its own perspective? Gold is primarily acquired for its merit as a store of value. Even if the worst crisis hits a family, the gold that it holds could be put to use anywhere in th...
Read more

Buying a Used Car

Invest in Mutual Funds Online Download Mutual Fund Application Forms   Pre-owned car can make sense in these inflationary times. But buying one can be trickier than getting a new vehicle    If you are thinking of buying a car but are worried about the rising inflation and higher EMIs eating into your budget, you should consider buying a used car. For those learning to drive, the general advice is that they should hone their driving skills in a used car. However, buying a used car is not an easy task. Though a used car costs less, there are a lot of aspects to be considered while buying one. You should do your due diligence before buying such a car. For example, two cars of the same model would carry two different prices. The difference in price could be on account of the age of the car, how many people have driven, etc. First Fix Your Budget Since used cars are available in a wide variety of models and prices, the starting point would be to determine your budget befor...
Read more

Debt Mutual Funds Best Fixed Income Investments

Debt Mutual Funds - Invest Online     In the last one year, except for a select few sectoral funds and small cap funds, not many of the equity funds have given great returns. On the other hand, debt funds have done relatively well in terms of returns. So far in the new year too, the stock market has been extremely volatile, pushing investors to look for safer havens. In this context, debt funds are looking safer bets for those investors who do not have the appetite for higher level of volatility. Investors who look for a regular income stream, also look at fixed income products like debt funds, bank fixed deposits and post office monthly income schemes.  Among the fixed income products, debt funds score over others because of chances of higher return, has nearly similar level of risks and liquidity. According to Shah, people looking for regular income could opt for a systematic withdrawal plan (SWP) in debt funds , which, if done judi ciously could also save on taxes. Shah explaine...
Read more

Diversification is key to gain more

Even those who prefer debt for its safety are looking at more options    It is not often that you find more than a couple of asset classes producing good returns at the same time. Invariably, assets such as gold and equity don't perform in tandem, and hence it was easier to allocate to them in line with the risk profile of the investors. In the last couple of quarters, however, more than one asset has turned attractive - gold, debt and equity. In line with the trend, you even have monthly income plans with a combination of more than two assets.    In the past, those who stuck to debt were a different class of investors who didn't wish to take risk with their money. The changing lifecycles and the growing integration of investment markets across the globe have pushed even individual investors to embrace the concept of asset allocation. Hence, you have individuals who were using debt to park profits being prepared to take advantage of other assets.    For instance, when the...
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