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?
Taxes
If you are a Senior Citizen, should you invest in NPS?
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?
Health Insurance Tax Benefits under Section 80D (From FY2019)
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)
Do not invest in Dividend Schemes from Equity Mutual Funds
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
After tax on LTCG, are ULIPs better than 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?
Impact of Tax on Long Term Capital Gains on Returns: Explained with Examples
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
Budget 2018: Key Highlights and the Income Tax Slab Rates for FY2018-2019
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
Budget 2018: Long Term Capital Gains Tax on Equity Mutual Funds and Listed Shares Introduced
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
What are Tier 1 and Tier 2 NPS accounts? What is the difference?
Though I have talked about the difference between Tier 1 and Tier II NPS accounts in many of my earlier posts, I still receive a number of queries from investors asking about the difference between the two. In fact, I had a query where the investor invested in Tier 2 NPS to avail tax benefit (figured out later). Therefore, I think it will be useful to dedicate a post to the … [Read more...] about What are Tier 1 and Tier 2 NPS accounts? What is the difference?
Primer: Income Tax Calculations for Beginners
When you are starting your professional career, the excitement of getting the first salary credited to your bank account is palpable. However, the difference between expected credit and actual credit can many times leave you puzzled. The difference is due to income tax. It is correct that you cannot save taxes beyond a point. However, by planning your taxes properly, you can … [Read more...] about Primer: Income Tax Calculations for Beginners
