In this post, I will discuss tax benefits for NPS and the tax treatment of maturity proceeds. I will discuss if it makes sense to invest in NPS now or if you should invest in NPS for the exclusive benefit of Rs 50,000 under Section 80CCD(1B). NPS Tax Benefits (Latest) This part has not been affected by the latest budget. Only contribution to Tier-I NPS account is eligible … [Read more...] about NPS Tax Benefits and Tax Treatment at Maturity (Latest)
Introduction on tax on the long-term capital gain (LTCG) on the sale of equity funds/shares is a clear pain point for the equity investors. If you rebalance your portfolio at regular intervals (which you should) or have been planning to switch your regular plan investments to direct plan, you will have to incur some cost now. Earlier (before the introduction of the tax on … [Read more...] about How Tax loss Harvesting can help you save Capital Gains Tax?
In this post, I will answer a few queries that investors may have while exiting NPS (National Pension Scheme). There could be three types of exits from NPS: Normal exit (At the age of 60 in case of All Citizens Model, At the time of superannuation in case of Government NPS and Corporate Sector NPS) Pre-mature exit (before the age of 60 or superannuation as … [Read more...] about FAQs: Lumpsum Withdrawal and Annuity Purchase at the time of exit from NPS
If you keep a sizeable amount of money in savings bank accounts or bank fixed deposits, you must know about tax relief on interest income under Section 80TTA and 80TTB. Let’s find out about the tax relief under Section 80TTA and Section 80TTB. #1 Section 80 TTA (Interest Income on Savings Bank Accounts) Interest earned on savings accounts is exempt from income tax to the … [Read more...] about Section 80TTA and Section 80TTB: Saving tax on interest income
Long Term Capital gains on sale on debt mutual fund units are taxed at 20% after indexation. That is primarily the reason why many investors choose to invest money in debt mutual funds if the investment horizon is more than 3 years. I am talking about money that you don’t want to invest in volatile assets such as equity. While this is mostly correct, this may not always hold … [Read more...] about How a low growth in CII can affect your post-tax returns and investment choices?
PFRDA increased the maximum age of joining under National Pension System from 60 to 65 years. Here is the link to the circular. The joining age has been increased for All Citizens model (including Corporate Sector NPS). No such provision for Government sector NPS. Please understand investors were already allowed to continue their existing NPS accounts until the age of 70. It … [Read more...] about If you are a Senior Citizen, should you invest in NPS?
You are aware of the health benefits of health insurance. But, are you aware of the tax benefits of health insurance? Do you know that you can claim tax benefit for payment for preventive health checkup too? Are you aware there are exemptions/deductions available for medical expenses incurred under specific cases? In one of the earlier posts on how to save income tax, I had … [Read more...] about Health Insurance Tax Benefits under Section 80D (From FY2019)
Budget 2018 introduced Dividend Distribution tax on dividend from equity mutual funds. In one of my earlier posts, I had highlighted how mutual fund houses are misguiding investors and convincing investors to invest in dividend plans of mutual fund schemes. Dividend schemes never made for a good choice in case of equity funds. In this post, we will look at the reasons. … [Read more...] about Do not invest in Dividend Schemes from Equity Mutual Funds
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 After tax on LTCG, are ULIPs better than Equity Mutual Funds?
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