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
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
Plan to start saving for your retirement? Where should you invest? Let’s look at various products where you can invest in. Defined Benefit Plans from Employers Pension plans from Insurance Companies National Pension Scheme (NPS) Retirement Plans from Mutual Funds Disciplined investing in Mutual funds (along with PPF, EPF etc) In this post, I will compare … [Read more...] about Retirement Planning: Pension plans or Mutual Funds?
Tax-free bonds have been the flavor of the last financial year. There were many such bonds issues in the last fiscal. All the issues saw huge demand and were lapped up on the first day itself. I have had my reservations about tax-free bonds but that’s not the topic of this post. From my interaction with the bog readers and clients, I could sense there was a minor confusion … [Read more...] about Tax Saving Bank Fixed Deposits vs Tax-Free Bonds
Tax-saving season is underway. You must already be exploring ways to save income tax under Section 80C of the Income Tax Act. And when the discussion on tax-saving products is on, life insurance plans will invariably come up. After all, the premium paid to keep life insurance plans in force is eligible for tax benefits under Section 80C of the Income Tax Act. Life Insurance … [Read more...] about The Problem with Single Premium Life Insurance Plans
During the tax-saving season, ELSS vs PPF is a very common topic of discussion. Conservative investors consider PPF better while proponents of equity investments can not see anything beyond ELSS. A number of my clients and friends inexplicably ask this question during the last quarter of financial year. I find this question quite amusing and in fact wrong at some level. Apart … [Read more...] about Should you invest in ELSS or PPF for tax-saving?
In the last budget, the Finance Minister offered an additional tax benefit of Rs 50,000 per year for investment in NPS. This tax benefit is available exclusively to NPS under Section 80CCD (1B). Moreover, this benefit of Rs 50,000 is over and above Rs 1.5 lacs under Section 80C. For this additional tax benefit, NPS has caught the attention of many investors. Should I invest … [Read more...] about Should you invest Rs 50,000 in NPS for the extra tax benefit?
Almost everyone wants to own a house. An own house not only gives you that sense of pride but also provides financial security to the family. However, with real estate prices at elevated levels, it is not easy to purchase a house outright. Most people rely on home loans to own that dream house. And they have huge EMIs to take care off too. A big EMI can put huge burden on your … [Read more...] about Tax Benefits on Home Loan Repayment