Budget 2018 proposed long-term capital gains tax on equity investments. The very next day, the insurance companies were out with advertising campaigns highlighting the tax advantage of ULIPs over mutual funds. Well, mutual funds and ULIPs compete for investor money. And it is not unfair on the part of insurance companies to highlight any demonstrable advantage that they may … [Read more...] about With tax on LTCG on sale on equity mutual funds, do ULIPs make for a better investment choice?
Long-Term Capital Gains on sale on equity mutual funds and listed shares was proposed in Budget 2018. I have discussed the proposal in an earlier post. In this post, let’s look at the actual impact (in numbers) because of the introduction of tax on long-term capital gains. LTCG on sale of equity shares/equity mutual funds From FY2019, the long-term capital gains (holding … [Read more...] about Impact of Tax on Long Term Capital Gains on Returns: Explained with Examples
Here are the key highlights of Budget 2018: Income Tax Slab rates have not been changed (Income Tax slabs for FY2018-2019) Income Tax Slab rates remain the same as for FY2017-2018. Introduction of Standard Deduction of Rs 40,000 (Good) This replaces medical reimbursement and travel/conveyance allowance. At present, you can get medical benefits reimbursed from … [Read more...] about Budget 2018: Key Highlights and the Income Tax Slab Rates for FY2018-2019
Long-term capital gains tax on the sale of equity and equity funds has now been introduced. Earlier, if you sold the listed shares or equity oriented mutual funds after 1 year, the resulting capital gains were exempt from income tax. This is no more the case. How will Long-Term Capital Gains on Sale of Equity Mutual Funds/shares be taxed? Such long-term capital gains are … [Read more...] about Budget 2018: Long Term Capital Gains Tax on Equity Mutual Funds and Listed Shares Introduced
The Govt. of India announced 7.75% Savings (Taxable Bonds), 2018 recently. Let’s understand the salient features of these bonds and whether you should consider investing in these bonds. Firstly, these are not new bonds. The Govt. withdrew 8% taxable bonds (2003) recently and has introduced these new 7.75% taxable bonds, 2018 in its place. The earlier bonds had a maturity … [Read more...] about 13 Things to know about Govt. of India 7.75% Savings (Taxable) Bonds, 2018
Conventionally, when you borrow, you borrow from an institution, say a bank or a Non-Banking Finance company (NBFCs). In case of Peer-to-Peer lending, you don’t borrow from an institution. Instead, the lenders are common individuals like you and me. To put it another way, in case of peer-to-peer lending, both the borrower and the lender are common individuals. Please … [Read more...] about All you need to know about Peer to Peer Lending Platforms
On a recent visit to a leading jeweller, I came across a gold scheme. Typically, the gold schemes go like this: You pay a fixed amount (instalment) every month and at the end of a specific period, you can purchase jewellery from the jeweller. Of course, the jeweller gives you an incentive to participate in such a scheme. In this, I will discuss Golden Harvest Scheme … [Read more...] about Is it wise to invest in Gold schemes by Jewellers?
Atal Pension Yojana (APY) was launched to provide life-long pension to the underprivileged and workers in the unorganized sector. If you join the scheme, the Central Government guarantees you and your spouse a minimum pension for life. Atal Pension Yojana (APY): Benefits and Scheme Details Based on your contribution per month, you will receive a minimum guaranteed pension … [Read more...] about Atal Pension Yojana (APY): Features, Benefits, Tax Treatment and Review
You purchased a pension plan many years back. The plan is about to mature. You get a call from the insurance agent/salesperson that you can use the pension plan proceeds to purchase a Unit Linked Insurance plan. What will you do? I have received quite a few similar queries over the last few months. Perhaps, this always used to happen. Just that I got aware because of the … [Read more...] about Maturing Pension plans and purchasing new ULIPs
Have you been investing in NPS? If not, I am not sure there are some reasons for staying away from NPS. Some of the common (and most of them valid too) reasons for not investing in NPS are: #1 Your money is locked in until the age of 60 Yes, you can’t access your money until the age of 60 or you can access only a small portion of it before 60. That is a problem. But all … [Read more...] about What are the problems in NPS? Why investors stay away?