You got Rs. 10 lacs with you. You know you would need the money or at least some portion of it within 3 years. Where would you invest that money? A Bank Fixed Deposit or a Debt Mutual Fund? Let's assume debt mutual funds have as low risk as FDs and FDs are as flexible as debt MFs. The only difference is in tax treatment. And that both return 8%. After 1 year, you … [Read more...] about Need money within 3 years: Bank FD or a Debt Mutual Fund?
The Union Budget 2019 brought good news if you were planning to purchase an electric bike or car on loan. A new section 80EEB was introduced to provide deduction up to Rs 1.5 lacs on the interest paid on electric vehicle loans. Car loans are medium value and short (or medium) term loans. Given this peculiarity about car loans, how much tax savings does this section really … [Read more...] about Tax Benefit for Electric Car Loans under Sec 80EEB: What are the real tax savings?
You have some cash in hand because of the recent annual performance bonus that you received. You have not yet decided how to use that money. You have no credit card or personal loan which needs to be settled at a high priority. You only have a home loan but you are not planning to part prepay it because you will lose out on tax benefits. This is a common refrain among home … [Read more...] about Do not Overestimate Tax Benefits on Home Loan Repayment
Tax incentives for NPS have gotten better and better over the last few years. In 2018, NPS almost became an EEE product. Almost. The entire lump sum withdrawal at the time of retirement (60 years) became exempt from tax. The same was notified in Union Budget 2019 too. In my previous posts on NPS, I have solely focussed on if and how much you must invest in NPS. Here is my … [Read more...] about NPS: Your Employer offers to contribute, Should you sign up?
Taxes for the rich (high-income earners to be more precise) are going up. Apart from the usual income tax rates, you may have to pay surcharge too if your taxable income is in excess of Rs 50 Lacs. A Surcharge is levied on the income tax. Until about a few years back, the surcharge was applicable only if your income exceeded Rs 1 crores. Over the last few years, the Government … [Read more...] about How Marginal Relief helps those who pay Surcharge on Income Tax?
Myth 1: The entire life insurance premium is eligible for tax deduction. Myth 2: The payouts from the life insurance policies are always exempt from income tax. Reality: You may not tax benefit for the life insurance premium paid. Moreover, the payouts from the life insurance policies may not be tax exempt either. There are a few conditions involved before you enjoy … [Read more...] about Misconceptions about Life Insurance Tax Benefits; Insurance payouts can be taxable too
The Finance Minister presented the final budget for FY2019-2020 on July 5, 2019. Here are the key highlights of the budget. Income Tax slabs unchanged; Surcharge increased for the rich There has been no change in the income tax slabs. There is a sharp increase in surcharge for those earning more than Rs 2 crores. We must understand the impact of the surcharge is … [Read more...] about Final Budget 2019: Taxes for the Rich, Benefits for Buyers of Homes, Electric Vehicles
The Union budget 2019 was presented on Feb 1, 2019. There were some tax sops offered to the middle class. A new pension scheme for the workers in the unorganized sector was launched. There was an announcement of guaranteed basic income for certain section of farmers. So, something for everyone. Here are the highlights. 1. Income tax … [Read more...] about Budget 2019: Key Highlights
The Government of India has brought about a few important changes to NPS (National Pension Scheme). All the changes are beneficial for the NPS investors. Some of the changes are only for the Central Government Employees while the others apply to all the NPS subscribers. Let’s go through the changes in detail. Change # 1 (Taxation of NPS Maturity proceeds) This change … [Read more...] about Good News: Lumpsum withdrawal from NPS is now exempt from tax
Investing in Government Securities has become simpler. The Reserve Bank of India had notified, in November 2017, that stock exchanges can act as aggregators for retail investor and thus facilitate bidding for Government securities at RBI auctions. Discount broker Zerodha and NSE came out with the online facility to purchase Government bonds recently (late 2018). In this post, … [Read more...] about You can now invest online in Government Bonds easily. Should you?