#pf and ppf comes under 80c
Explore tagged Tumblr posts
businessskibat · 2 months ago
Text
Pension Through PPF Account: हर महीने आपको मिल सकता है ₹60,000 का पेंशन, कोई भी टैक्स नहीं देना पड़ेगा
Pension Through PPF Account : हम आज आपको रिटायरमेंट के बाद हर महीने पेंशन कैसे प्राप्त कर सकते हैं बताएंगे। जी हां, अगर आप आज से निवेश करना शुरू कर देते हैं, तो रिटायरमेंट के बाद आपको हर महीने ₹60,989 पेंशन मिलेगी। इस तरह की पेंशन पाने के लिए आपको पीपीएफ खाते में निवेश करना होगा। इसकी विशिष्टता यह है कि सरकार ने इस स्कीम को टैक्स से छूट दी है। जिससे आपको बहुत अधिक लाभ मिलता है। तो चलिए इसके बारे…
0 notes
ezybizadviser · 3 years ago
Text
INCOME TAX RETURN IN INDIA- Important things to be kept in mind
INCOME TAX RETURN IN INDIA
  The financial year 2021-22 is coming to an end now and every assessee needs to prepare and file their Income Tax Return in India on or before the due dates prescribed under the Income Tax Act.
 In this write up, we have provided some of the important things which should be kept in mind for the purpose of filing Income Tax Return.
Tumblr media
 Things to be kept in mind for purpose of ITR Filing
 Following things shall be kept in mind at the time of ITR filing for FY 2021-22
  1)      Ensure you have done your investments eligible for deduction before 31st March
 As per the provisions of the Income Tax Act, every assessee is entitled to deduction upto Rs.1.5 lac for making investments in specified schemes on or before the end of the financial year. Some of the investments which are eligible for deductions are like investment in LIC, mutual funds, PF, PPF, children education, NSC etc. In case you have not yet done your investment as prescribed under section 80 C you may do so before 31st March 2022. Similarly, there is additional deduction of Rs.50,000 for making investment in mediclaim or health insurance. This deduction is eligible u/s 80D and is over and above the prescribed limit of investment of Rs.1.5 lac under section 80C. Accordingly, such investments may also be made before 31st March.
Tumblr media
 2)      Close your books and make reconciliations
 In case of business assesses, it is important to close the books of accounts and make all the provision entries and reconcile the figures of sales and purchases with Form 26AS, GST returns and bank statements.
 3)      Reconciliation between form 26AS and AIS
 Nowadays, tax department has all the information about all the financial and non-financial transactions of the tax assessee and same are automatically reflected on the tax portal in the form of form 26AS and form AIS. Therefore, it is very important to consider all those transactions at the time of preparation and filing of Income Tax Return in India. Failure to reconcile the same may result in issuance of income tax notice by the tax authorities and opening of the case of the assessee for the purpose of scrutiny assessment.
  4)      Keep handy all the documents required for Tax Return Filing
 Normally, lot of information and documents are required for tax return filing by making proper analysis of income and deductions allowed etc. and therefore, it is advisable to keep all the necessary documents handy. Following are the list of documents which are normally required by every assessee for preparation and filing of Income Tax Return.
 a)      In case of salaried employees, copy of form 16, salary slip, employment contract letter
b)      Copy of TDS certificate in form 16A
c)      Copy of form 26AS and AIS
d)     Copy of bank statements of all the bank accounts including bank account outside India in case of Residents having overseas bank account
e)      In case of Non Residents, copy of visa, passport and details of number of days of stay in India during last year, last 4 years, last 7 years and last 10 years in order to determine the residential status. Also, their Tax Identification number in foreign country
f)       Copy of documentary evidences of investments made u/s 80C and 80D
g)      Copy of PAN, Aadhar, Passport
h)      In case of investment in shares, mutual funds, copies of contract notes, statement of investments etc.
i)        In case of sale of property, copies of sale and purchase deed
j)        Income tax login password
 Above are some of the things which should be kept in mind while filing Income Tax Return in India. The list is not exhaustive and only illustrative.
0 notes
braydenjollie · 3 years ago
Text
Top 10 Tax Saving Investment Options In India
There are some ways to save lots of tax, the foremost common ways to take a position in Mutual Funds or Equity Funds. Nowadays, there's another quite tax-saving investment option in India, which is you'll invest in Fixed Deposits with banks. it's called a Tax Saving investment option. all folks must save our tax and it's mandatory to save lots of our tax once we want to shop for a house or invest in any quite an investment. But in India, there's a change, which has been happened within the sort of GST, which has been impacting the general market and most of the people have lost their confidence within the market. many of us are taking loans from banks and other Financial Institutions, due to the bad market condition.
AYP can help you with all this stuff they are also recognized one of the best online consultants in Agra for investing related purposes.
Tax saving bond
There are tax-saving investment options in India which will offer you a particular amount of interest on your investment that has already been made and is getting used to pay tax. If your investment is enough and has not been withdrawn, it'll be tax saving investment option that you simply have immediately . Tax saving bond may be a quite investment option which will offer you interest on the funds you have already got . In this, you'll pay tax on a hard and fast income. In short, you'll tend a hard and fast amount of return as long as your investment during this instrument is maintained. you'll pay the tax on this amount monthly , year then the fund is closed for receiving further income for your financial needs.
Tax-free investments
Every person who owns a house or house apartment needs life assurance . there's no tax on the premium purchased life assurance . there's no tax if you invest in LIC. But the utmost you'll invest is Rs 1.5 lakh in LIC and each year you'll increase the limit of your LIC investment. In 2017-18, the limit was increased to Rs 2 lakh, but to avail of the tax-saving, you've got to form the premium payment on time. Investment in PPF is additionally tax-free. Under Section 80C of the tax Act, if you invest your money in PPF then the interest on PPF is tax-free investments and it's not taxable., the minimum amount that you simply can invest is Rs 500 and just in case you transcend that limit then there's a tax. However, maximum tax saving is just in case you invest in other investments.
Tax saving on open-end fund
If you're an investor and you would like to save lots of on the taxes of open-end fund investments then you ought to believe the tax saving within the Indian market. you'll save tax on your investments in mutual funds through tax-saving instruments. There are three sorts of tax savings that you simply can accompany within the market which are SEBI A, B, and C. SEBI A is zero tax on dividend income. SEBI B may be a 1.5% tax on fund house profit. SEBI C may be a 2% tax on total dividend income. Tax Saving with Tax Saving Bonds One can save the taxes of your bond investments if you purchase these as per tax-saving offers offered by the tax department. As such, the income of dividends isn't taxed but interest income is taxed.
Tax saving options in India
What are tax-saving investments? There are numerous options available in India for tax-saving investment, i will be able to mention a number of them below:
Tax-Free Bonds: Tax-Free Bonds are an investment option that gives tax benefits to investors by way of – Tax exemption – Voluntary disclosure – Interest earned is exempt from taxes
NSC/National Saving Certificate: NSCs are the perfect option for tax-saving investment. NSC may be a tax-saving bond that's issued by the Federal Reserve Bank of India within the name of each salaried citizen. To avail of the advantages under this scheme, you would like to get a minimum of Rs 1,000 in NSC. you'll earn up to 10% interest annually from these savings bonds. this is often the simplest tax-saving investment option available in India today.
How to get maximum tax saving through investments
Tax saving instruments like equity funds, bonds, mutual funds, and life assurance plans need to be invested consistent with the investment objective and you would like to try to to this to save lots of maximum tax.
Let’s take a glance at how the investment plan must be devised and what are tax-saving investment options available to you to save lots of maximum tax.
Equity funds
Equity funds are managed by experts who have a bit of in-depth knowledge about the market and are required to pick the proper funds for your portfolio. It means you'll choose funds supported your financial position and goals. As a result, if your investments are in equity funds, you're sure to earn higher returns as compared to the other investment option within the market.
Fixed deposits
As I said before, a hard and fast deposit is an investment option that you simply can choose supported your financial position and goals. This investment option comes with the characteristics of the bank account . The FD rate of interest in India is presently around 8-10% p.a. and that’s the rationale why FDs are popular among the low incomes class of Indians.
Public Provident fund
PF may be a tax-saving investment option that you simply can choose supported your financial position and goals. PF has the characteristics of a bank account and its interest is paid monthly like other savings accounts within the country.
National Savings Certificate
NSC may be a tax-saving investment option that you simply can choose supported your financial position and goals. Interest on these certificates is said on an equivalent date as that of the tax return of the individual.
Sukanya Samriddhi Yojana
this is often an investment scheme where you'll invest till Rs 1 crore per child. Interest on these certificates are often declared quarterly like other fixed deposits within the market.
However, once you invest money during a savings scheme, like recurring deposit, recurring deposit for business, or fixed deposit, or another one, after the initial return, your investment grows in money. When the investment grows in its maturity period, you'll withdraw the quantity . But there are some tax-saving investment options that you simply can choose . If you've got a pension plan and you've got an inflation-linked bond, then it's an excellent investment option for you. There are some tax saving investment options in India like equity-linked saving schemes (ELSS), UTI open-end fund , tax saving on open-end fund , equity-linked savings scheme (ELSS), mutual fund, tax saving on equity open-end fund , tax saving in equity open-end fund , stocks and options, open-end fund and open-end fund for housing. For assistance associated with tax saving, you'll contact us.
0 notes
quikkloan · 5 years ago
Text
What is PPF -Public Provident Fund
Tumblr media
Intro Public Provident Fund or commonly known as PPF is one of the best savings schemes offered by the Government of India. Every Indian citizen can open a PPF account either in a post office or any bank branch. One can invest from Rs.500 to Rs.1.5 lakh per year in his account with up to 12 deposits in a year. A PPF account comes with a 15 year lock-in period along with a partial withdrawal/premature closure facility after 6 and 5 years respectively. Loan against PPF is also available along with tax benefits under section 80C of the Income Tax Act. With interest rates as high as 8% per annum, one can expect to have guaranteed and good returns on the invested amount. 
What is PPF?
Stands for Public Provident Fund, PPF is a long-term investment scheme offered by the Government of India. It is available at an attractive interest rate hence one can expect to have good returns on the amount invested. Every Indian citizen can open a PPF account either in a post office or bank branch. An individual can start investing with Rs.500 and goes up to Rs.1.5 lakh in a financial year. And, a maximum number of 12 deposits are allowed in a year. However, a PPF account has a clause of 15 year lock-in period which means an individual is not supposed to withdraw the money before the said tenure. However, premature closure of the account is allowed after 5 years on medical & educational grounds. And, partial withdrawal is also allowed after 6 years with certain charges being levied. A loan is also given against PPF and under section 80C of the Income Tax Act, an individual can also enjoy tax benefits.  Apply for Personal loan Online & get Instant Loan e-Approval.
Eligibility For PPF
Any individual of age 18 or above and a resident of India can only open a PPF account. An individual can only open one PF Account under his/her name.Additionally, parents/guardians can also open PPF accounts for their minor children.NRIs and Hindu Undivided Families(HUFs) are not eligible to open PPF accounts.However, a resident Indian who has become an NRI after opening a PPF account can continue the account till maturity. Opening of joint accounts and multiple accounts are not allowed.
Documents for PPF
PPF Account Opening Form (Form A) can be obtained from a post office,  bank branch or can be downloaded onlineID proofAddress proofPhotograph of the account holderNomination form PPF at a Glance: Withdrawal TypeTime PeriodOn What GroundsHow Much?MaturityAfter 15 YearsAnyFull AmountPartial WithdrawalAfter 6 YearsAny50% BalancePremature Account ClosureAfter 5 YearsMedical, EducationFull Amount Read Also - Personal loan Eligibility
How to Open a PPF Account
You can open a PPF Account online as many banks provide the same provision. To open the account, you must follow the following steps:
PPF Login and Registration Process
Step 1: You must have an account with the bank you are going to open your PPF account with Step 2: Log in to the net banking Step 3: Click in the option that allows you to ‘Open a PPF Account’ Step 4: Choose the relevant option between a ‘self account’ and a ‘minor account’ Step 5: Enter the required information such as nominee details, bank details, etc. Step 6: Verify details like your Permanent Account Number (PAN), etc. that is shown on the screen Step 7: After verifying the details, enter the amount that you wish to deposit in your PPF account Step 8: You will be asked to set up standing instructions that enable the bank to deduct the amount at fixed intervals or in a lump sum Step 9: After you make your choice, you will receive an OTP on your registered mobile number Step 10: Once this verification is done, your PPF account gets opened. You are advised to save the account number that is displayed on the screen for future reference Step 11: Certain banks may even ask you to submit the hard copy of the details entered along with the reference number and submit it to the respective bank with your KYC details Note: Different banks have a different process for PPF Account opening. However, the general steps remain the same.  
Online PPF Calculator
Don’t know how to calculate PPF returns? Use a smart and versatile tool known as PPF Calculator. Yes, it is widely used to calculate returns on your invested amount. Take a look at the features of the calculator below as it helps to: Calculate the return that you will get on your investmentPlan your investments, and invest towards in a desired financial goalHelps you to know withdrawal limits
PPF Withdrawal
An individual can easily withdraw his money online. He can either choose to withdraw the amount after maturity or opt for partial withdrawal. However, one can also go for premature account closure and withdraw the accumulated amount.  Maturity: Individuals can close the PPF account only after the completion of the 15 years. Once the 15 years is completed, the account holder can withdraw the entire amount that has been saved in the account as well as the interest that has been generated. Partial Withdrawal: In the case of partial withdrawal, the fund is available after the completion of 6 years of opening the account.  An account holder can withdraw only 50% of the total money here.   Premature Withdrawal/Closure: After the completion of 5 years, an account can choose to pre close his account. He can withdraw the entire PPF money.    Note: However, an account holder is allowed to make withdrawals only once a year.
PPF Interest Rate
The current interest rate is 8% per annum. However, different banks offer different rates to individuals. Thus, it would be advisable to check and compare the rates before opening your PF account.   PPF Maturity Tenure PPF account’s maturity tenure is 15 years which means it comes with a lock-in period clause. However, an individual can opt for partial withdrawal and premature closure after 6 and 5 years respectively. Moreover, at maturity, one can also extend his PPF Account indefinitely in blocks of 5 years at a time.  
Minimum and Maximum Contribution
The minimum annual contribution to a PPF Account is Rs.500 while the maximum is Rs.1.5 lakh. There can be a maximum of 12 contributions in a year. However, the maximum limit applies to contributions made by a person for himself and for a minor child, both.  
PPF Tax Benefits
Under Section 80C of the Income Tax Act, the interest earned during the PPF tenure is exempted from the tax liability. The PPF Deposit of up to Rs.1.5 lakh is liable to the exemption and the amount to be received on maturity is also tax-free. 
PPF Transfer
Both bank and post office PPF account holders can transfer their accounts from one bank to another, or from one post office branch to another or bank. Here is how you can do it.
Transferring within the same bank branch or post office
If you want to transfer within the same bank or post office, then the process is quite simple. You have to visit your existing branch and submit an application to change the branch.  Note: The process can take one to seven days depending on the bank or post office branch.
Transferring from post office to bank and vice versa
Step 1: Visit your existing bank/post office branch along with your PPF passbook. Step 2: You will be required to submit a transfer application request. On the application form, you will be required to mention the full address of the post office/bank's branch where you wish to transfer your PPF account. Step 3: Upon receiving your PPF transfer application request, the existing branch will start the process. Collect the receipt of the transfer request. The existing branch will send the following documents to the new branch: a) Certified copy of the account b) Original Account opening application form c) Nomination form d) Specimen of your signatures e) A cheque or demand draft of the outstanding balance f) Existing PPF passbook Step 4: Once the new bank /post office branch receives your documents from the old branch, the branch officials will intimate you about the receipt of your documents. Step 5:  At the new branch, you will be required to submit the fresh account opening form, change of nomination form, if any and original passbook. Step 6:  Carry your photographs, PAN card, address proof such as Aadhaar card, voter's ID as your bank might ask you to undergo the know-your-customer (KYC) process again. Note: The transfer process can take up to one month.
Loan Against PPF
Account-holders have the option of taking a personal loan against his/her investments made in the account at competitive interest rates. Loan against a Public Provident Fund account can be availed between the third and sixth financial year of opening the account.  An amount of only 25% of the investments made at the end of the second financial year preceding the year in which the loan was applied for can be availed. The interest on the loan is fixed at 2% more than the interest earned on the balance in the PPF account, implying that the changes in the interest on PPF account affect the interest on loan against PPF account as well. It must be noted that once the interest rate is set for a loan, there is no change in the interest rate till the duration of the loan ends. However, if the account holder fails to repay the loan within 36 months, the applicable interest rate will rise to 6% more than the interest earned. And, if the borrower manages to repay the principal amount within the loan tenure but fails to repay a part of the interest amount, then the remaining amount will be deducted from the Public Provident Fund Account balance of the individual. Also, a borrower cannot apply for a second loan unless and until he has not repaid his first loan entirely. 
How to Check PPF Account Balance Online
You can easily check your PPF account balance online. However, there are a few steps that you need to follow.  Step 1: Before you begin, ensure that your net banking with your bank account is active Step 2: Log in to your PPF account using your internet banking credentials Step 3: Once you log in, your current PPF account balance will be displayed on the screen Note: Logging in to your PPF account using internet banking allows you to transfer funds to your PPF account online.Set up standing instructions for your PPF account.Download your PPF account statementSubmit your PPF loan application, etc.
How to Know Your PPF Withdrawal Status
You can check the claim status of your PPF online via net banking. You just need to follow a few simple steps online. Step 1: Log into your account and begin the claim process. Step 2: It must be kept in mind that the claim status can only be checked on only once you’ve logged into your account and started the claim process. Step 3: Some banks only accept PPF deposits online, in this case, the PPF withdrawal claim can only be checked online. Step 4: If the PPF account has been created in a post office, the claim status can be checked by a simple process of inquiring from the same post office.
Features and Benefits of PPF Account
Long Term Investment OptionTax ExemptionsPartial WithdrawalPremature Closure/WithdrawalLoan Against a PPF AccountMaximum Deposit of up to Rs.1.5 lakhGuaranteed ReturnsAttractive Interest RatesLock-in Period of 15 Years
Forms Required as per PPF Schemes
Form A: For Opening Public Provident Account Form B: To make a deposit into the account OR to repay the loan taken Form C:For obtaining partial withdrawals Form D: Request a loan against PPF Account Form E: For Nominee request Form F: To make any changes in the information related to PPF account Form G:To claim the funds on the account by a legal heir or nominee Form H:To extend the time-period of the account after its maturity
Things to Keep in Mind
If you want to transfer your PPF account requires you to undergo the KYC process again along with filing up of fresh forms, the transfer of account will be considered as a continuing account. Therefore, all benefits such as premature withdrawal, loan facility will not be affected. Due to the transfer process, a new PPF passbook will be issued to you and your outstanding balance will be shown as a credit of balance transfer. It is advisable to take a photocopy of the old passbook for record of old transactions. 
How to Extend your Existing PPF Account
Soon after your PPF account matures, you can opt to extend the account without fresh deposits or with fresh deposits. Both the processes are different and have their own terms and conditions. However, for better clarity, you can get in touch with your respective bank.  Frequently Asked Questions (FAQs) Q. Who can open a PPF Account? A.Any Indian citizen above 18 years of age can open a PPF Account. Q.What is the current rate of interest on PPF? A.Currently, the banks are offering an interest rate of 8% per annum. Q.What are the tax benefits under my PPF Account? A.Under Section 80C of the Income Tax Act, an amount of Rs.1.5 lakh is exempted from the tax liability. Q.Do I need to mention a nominee while opening a PF Account? A.Yes, a PF account holder needs to mention a nominee, who is eligible to reap the benefits in case of uncertainty happens with primary account holder. Q. Can I invest more than Rs.1.5 lakh in my PPF Account? A.Yes, you can invest more than Rs.1.5 lakh in your PPF Account in a financial year but no interest or tax benefit will be earned on the excess amount. Because as per Section 80C of the Income Tax Act, total tax deduction per financial year is Rs.1.5 lakh only.  Q.Can I have two PPFs accounts? A.No, a person only has one PPF Account. However, a family is eligible to have multiple PPF Accounts. Q.Can I withdraw my PPF amount before maturity? A.Though a PPF scheme comes with a 15 year lock-in period but partial and premature withdrawal is also allowed.  Q.What is the minimum amount required to open a PPF Account? A.The minimum amount to open a PPF Account is Rs.500. https://blog.quikkloan.com/what-is-ppf/ Read the full article
0 notes
bloggermotion-blog · 5 years ago
Text
HOW TO SAVE TAX THROUGH SEC 80C IN 2019.
These days are that part of the year when we all are busy and worried about how to save Tax. Whilst most of us are aware of how to plan our tax savings. But still, there are new employees each year who are confused as to what are the best options to look for how to save Tax. The same happened to me too when I started working. Amidst this confusion, I was told about Sec 80C. But that gave no idea about how, when, what and how much needs to be done in this section.
Through this article, I have tried to bring out the basics related to saving tax under Sec 80C. As per this section, if a person or a HUF spends on certain listed aspects in this section until an amount of Rs. 1.50 lakhs, then he can claim this amount as a deduction from the total gross income and pay tax on the reduced income as per the applicable slabs.
But we must note that the amount of tax saved by using section 80C depends on the slab in which your income falls. For example, if your gross total income for the year says, Rs 7.5 lakh, then by taking a deduction of Rs 1.5 lakh under section 80C, you reduce your net taxable income of Rs 6 lakh. This would bring down your tax liability accordingly. If a person’s income is already below the minimum exemption limit, then there is no point in investments/expenditures under section 80C as his income is not liable for the tax.
Few easy to claim ways, how to save tax
How to Save Tax by
The premium paid for life insurance
:
The premium paid would include the premiums that you are paying for your spouse, children or yourself. This may include a term plan, ULIP or annuity plans. All premiums paid separately for different policies can be clubbed together up to the limit of Rs. 1.50 lakhs
How to Save Tax by Contribution to PPF:
You can start to invest in PPF with as less as Rs. 500 to Rs. 1.50 lakhs in a financial year and is eligible for deduction under 80C. The interest is compounded annually and has a term of 15 years before maturity. The best part is that the interest is guaranteed and is tax-free, but this is subject to revision every quarter. For this quarter ending in March 2019, it’s 8%.
Must Read:- PF BALANCE, UAN & PF STATUS CHECK ONLINE.
How to Save Tax by Contribution to EPF and VPF
:
All know that a certain proportion of your salary is deducted towards the PF contribution every month and this can be claimed as a deduction. The interest earned and maturity amount is tax-free if the rate is lesser than 9.5% or contribution by your employer is more than 12 % of your salary. There is an option to increase your PF contribution through Voluntary PF (VPF) if you can manage with a lesser take home salary. You can avoid all hassles to invest in several other options to manage deductions under Sec 80C by simply increasing your VPF up to Rs. 1.50 lakhs.
Must Read:- EPFO UAN LOGIN REGISTRATION & ACTIVATION ONLINE
How to Save Tax by
Home loan repayment
:
If you are paying an EMI towards your housing loan, then you need not to worry about Sec 80C deduction amount as the principal amount qualifies for this section. So just check the total amount of principal and relax! Even the interest part can save you tax under Sec 24 and Sec 80EE.
Must Use:- HOME LOAN CALCULATOR.
5 years Bank FDs, Post office FDs and NSCs:
All the above cases lack liquidity as in EPF and PPF the lock-in period is long term. So, in case you are looking for a shorter horizon, tax-saving instrument, then FDs and NSCs work the best. In the case of NSC, the interest is accumulated cumulatively and is reinvested in the NSC. Since it remains reinvested, it qualifies for a fresh deduction under 80C, and only on maturity year, the interest is taxed.
Another few ways, how to save tax
How to Save Tax by
Investment in ELSS
:
It’s also being considered as an attractive option under this section to save tax as it is market linked. It tends to provide higher returns when compared with other options available in this segment. But the returns are subject to long term capital gains tax as it comes with a lock-in period of 3 years.
How to Save Tax by
National Pension Schemes:
The section 80CCD enables you to save tax through the contributions you would make in pension schemes of the Indian govt. The total amount claimed for deduction cannot be more than Rs. 1.5 lakhs from both sections 80C and 80CCD. Also, the deduction has to be within 10% of salary in case of a salaried person and 20% of gross income in case of a self-employed. According to Sec 80CCD (1B), an additional Rs. 50000 deduction is allowed from the gross income if you invest in the notified pension schemes.
Read:- SAVE IN PUBLIC PROVIDENT FUND & GET 42.448 LAKHS TAX-FREE.
Currently, these schemes are Atal Pension Yojna and the National Pension Scheme. Additionally, the employer can also contribute to these schemes on your request. But maximum contribution as per sec 80CCD (2) is up to 10% of the employee’s salary. Please note that there is no upper bracket in terms of absolute monetary amount. Also, this 10% would only include the dearness allowance for the calculation purpose and would exclude all other allowances.
How to Save Tax by
Senior Citizen Savings Scheme 2004:
A senior citizen or a retired citizen under the VRS scheme in the age group of 55 – 60 years can open an account in this scheme within 3 months from the retirement date. You can invest in this by opening an account singly or jointly with your spouse in a post office or a commercial bank and can invest Rs. 15 lakhs or the retirement amount received whichever is lower. The current rate in this is 8.7 % and is subject to review for Jan to Mar 2019 quarter. However, the rate does not change once you open an account. Also, the tenure is 5 years which can be further increased for 3 more years. The interest received is taxable but the depositor can claim a deduction up to Rs.50000 under Sec 80TTB.
Besides the above, there are many other options also available under this section. So instead of struggling with the Income Tax jargons this year, keep the above in your focus area and claim deductions easily!
0 notes
aobindia · 6 years ago
Text
Women never took financial decisions in my family - how can i?
Are you an average Indian woman facing this dilemma? Do you believe that financial investment is an alien concept for you and this scares you from investing in any of the assets that are easily available?
 Well, let us first make it clear to you that Indian women are probably the smartest and most dexterous when it comes to saving money. It is an average woman in any Indian household who has been smartly saving a part of the income since ages and using this money during a situation of emergency.
 This is proof of the fact that women are not oblivious to financial investment; they just don’t realize it. In fact, it would not be wrong to say that women are expected to make smarter decisions because of their calm demeanor and ability to stay relaxed in intense situations.
 Therefore, if you are having any doubts or second thoughts about investing in financial assets, just ignore it. Saving money at home only means that you have something for the future but investing that money in the right products means that you will multiply it.
 Now, if you have read this article till here, we are assuming that you are partially or completely convinced. So, let us talk about the second important thing here. To invest in financial products, you also need to understand how the markets work and for that you will definitely need help from an expert.
 You don’t have to worry because learning about investment is not that tough. Also, at EPFP catalyst, we have designed our short-term courses in a way that anyone and everyone can learn about investment easily. We also offer free financial advice to make sure that you always take the right decision.
 If you are a housewife then our short-term courses are probably the best option available for you. By dedicating a few hours in a week and using your spare time to study the market, you will be able to build a strong understanding of the financial investments in a short time.
 This also means that you can encourage other women in your family to start investing. You can be a harbinger of a much-needed change and we are here to help you with that. If you already have some money saved then you can choose our wealth multiplier plan to make it grow manifold.
 With EPFP catalyst, you can always be assured of right advice because our team includes young people who are extremely enthusiastic about their work and have a huge experience in teaching, mentoring, and investing themselves.
    Is it better to invest in PF or PPF?
 With increasing awareness about the benefits of investment and the security it provides, more and more people are now trying to understand which options are better for them. While many prefer short-term investments, there are a lot of people who opt for long-term investments for a steady and assured growth of their money.
 long-term investments are probably the best option for those with a longer vision and when it comes to that, the two most popular investment options are Employee Provident Fund (EPF) or Public Provident Fund (PPF). Both the funds are used for long-term investment purpose and give you an assured return in the end.
 But, what are the pros and cons of EPF and PPF?
 The first and most important factor that should decide what you choose is whether you are a salaried employee or a self-employed person? Because, if you are employed then it has been mandated by the government that a part of your salary be used to invest in the EPF.
 What is the best part? The employer has to make an equal contribution to the employee’s EPF. On the other hand, PPF can be seen as an alternative for all those who are self-employed but want to invest in a safe and secure fund like EPF.
 If we look at both these funds on a whole then there are not many differences that can be used to prove that one of it is better. However, EPF has a few extra benefits which are not available to those who invest in PPF.
 The first benefit, as discussed above, is that the employer has to make an equal contribution to your EPF account every month while investing in PPF means you have to make the entire contribution.
 Secondly, if you resign from a company then you are eligible to withdraw your EPF amount. Also, you can withdraw the money for the personal purpose by depositing relevant documents. However, PPF comes with a lock-in period of 15 years and you can avail a loan on it only from the sixth year.
 Both EPF and PPF are seen as retirement funds and their rate of return is almost similar. Therefore, there are no advantages when it comes to getting a return on the investment. The rate of return stands close to 8 percent making both EPF and PPF a reliable investment option.
 Lastly, both these funds are liable for tax exemption under the section 80C. Also, there is no tax applied on the final amount which is withdrawn after maturity. However, when it comes to EPF, if you make your withdrawal before a period of five years, you have to pay the tax on the amount.
 So, what are you going to choose as your retirement fund?
0 notes
jarshinnovations-blog · 6 years ago
Text
Women never took financial decisions in my family - how can i?
Are you an average Indian woman facing this dilemma? Do you believe that financial investment is an alien concept for you and this scares you from investing in any of the assets that are easily available?
 Well, let us first make it clear to you that Indian women are probably the smartest and most dexterous when it comes to saving money. It is an average woman in any Indian household who has been smartly saving a part of the income since ages and using this money during a situation of emergency.
 This is proof of the fact that women are not oblivious to financial investment; they just don’t realize it. In fact, it would not be wrong to say that women are expected to make smarter decisions because of their calm demeanor and ability to stay relaxed in intense situations.
 Therefore, if you are having any doubts or second thoughts about investing in financial assets, just ignore it. Saving money at home only means that you have something for the future but investing that money in the right products means that you will multiply it.
 Now, if you have read this article till here, we are assuming that you are partially or completely convinced. So, let us talk about the second important thing here. To invest in financial products, you also need to understand how the markets work and for that you will definitely need help from an expert.
 You don’t have to worry because learning about investment is not that tough. Also, at EPFP catalyst, we have designed our short-term courses in a way that anyone and everyone can learn about investment easily. We also offer free financial advice to make sure that you always take the right decision.
 If you are a housewife then our short-term courses are probably the best option available for you. By dedicating a few hours in a week and using your spare time to study the market, you will be able to build a strong understanding of the financial investments in a short time.
 This also means that you can encourage other women in your family to start investing. You can be a harbinger of a much-needed change and we are here to help you with that. If you already have some money saved then you can choose our wealth multiplier plan to make it grow manifold.
 With EPFP catalyst, you can always be assured of right advice because our team includes young people who are extremely enthusiastic about their work and have a huge experience in teaching, mentoring, and investing themselves.
    Is it better to invest in PF or PPF?
 With increasing awareness about the benefits of investment and the security it provides, more and more people are now trying to understand which options are better for them. While many prefer short-term investments, there are a lot of people who opt for long-term investments for a steady and assured growth of their money.
 long-term investments are probably the best option for those with a longer vision and when it comes to that, the two most popular investment options are Employee Provident Fund (EPF) or Public Provident Fund (PPF). Both the funds are used for long-term investment purpose and give you an assured return in the end.
 But, what are the pros and cons of EPF and PPF?
 The first and most important factor that should decide what you choose is whether you are a salaried employee or a self-employed person? Because, if you are employed then it has been mandated by the government that a part of your salary be used to invest in the EPF.
 What is the best part? The employer has to make an equal contribution to the employee’s EPF. On the other hand, PPF can be seen as an alternative for all those who are self-employed but want to invest in a safe and secure fund like EPF.
 If we look at both these funds on a whole then there are not many differences that can be used to prove that one of it is better. However, EPF has a few extra benefits which are not available to those who invest in PPF.
 The first benefit, as discussed above, is that the employer has to make an equal contribution to your EPF account every month while investing in PPF means you have to make the entire contribution.
 Secondly, if you resign from a company then you are eligible to withdraw your EPF amount. Also, you can withdraw the money for the personal purpose by depositing relevant documents. However, PPF comes with a lock-in period of 15 years and you can avail a loan on it only from the sixth year.
 Both EPF and PPF are seen as retirement funds and their rate of return is almost similar. Therefore, there are no advantages when it comes to getting a return on the investment. The rate of return stands close to 8 percent making both EPF and PPF a reliable investment option.
 Lastly, both these funds are liable for tax exemption under the section 80C. Also, there is no tax applied on the final amount which is withdrawn after maturity. However, when it comes to EPF, if you make your withdrawal before a period of five years, you have to pay the tax on the amount.
 So, what are you going to choose as your retirement fund?
0 notes
andrewmathews17-blog · 7 years ago
Text
Why are ULIPs Great Tax Saving Instruments?
Apart from affecting the spending habits of the citizens of India, the demonetization move by the Government of India also affected the availability of favourable investment options. Banks, flushed with funds, have begun decreasing interest rates on fixed deposits and they are expected to lower them even further. Thus, any people are seeking safer investment avenues for wealth creation and tax savings.
Life insurance, it appears, is becoming one of the more preferred options for investors. As life insurance premiums and payouts are both Tax Deductible.
Life insurance products like Unit-Linked Insurance Plans (ULIP) are increasingly being considered to be more reliable wealth creation solutions over the long term, considering that these instruments provide returns, protection, and tax savings, all in one single product.
Why Choose ULIP Plans?
When comparing different insurance or investment instruments, it is always advisable to choose one that provides the combined benefits of wealth protection, strategic flexibility, value appreciation, and tax savings. A traditional insurance plan offers life protection and tax benefits but has minimal scope for wealth creation. On the other hand, mutual funds, provide good returns with zero life protection and also have restricted tax-saving opportunities.
Tax benefits of ULIP Plans
A ULIP plan, however, comes with several tax benefits. The premium paid towards a ULIP policy is eligible for tax deduction under section 80C of the Income Tax Act. Therefore, ULIP premiums can be deducted from one’s taxable income up to the permissible limit, which is currently at Rs. 1.5 Lacs, this makes ULIP plans an excellent tax saving instruments.  
Among the several investor-friendly features of unit-linked insurance plan is that it permits investing one’s premium in a combination of debt and equity funds in varying proportions, allowing for inter-fund transfers through switches; and all this is allowed with no tax liability. In addition to setting aside income for savings, smart tax planning is an essential component of sensible financial planning. The average investor presently enjoys access to several tax-saving options such as PFs and PPFs, life insurance policies, ELSS investments, and ULIPs, among others. However, ULIP insurance, as an investment option, definitely stands out from all other market-linked investments since the gains from even a debt fund in a ULIP investment plan are tax-free.
Thus, by investing in a correctly chosen ULIP policy, that is an insurance cum investment plan one can make returns on the investment, save on tax and also enjoy the benefits of life insurance.
0 notes
mylucky137276 · 7 years ago
Text
Budget 2018: From digitisation to NPAs, a lot expected for banking sector
Tumblr media
While there has been a lot of push lately on digital transactions from the Narendra Modi-led central government, it is expected that the coming Union Budget 2018-19 will see Finance Minister Arun Jaitley renewing the thrust by announcing some incentives for small businesses to increasingly go digital in so far as banking transactions are concerned.
Also, against the backdrop of the government’s plan to recapitalise public-sector banks, which have been suffering because of their ballooning non-performing assets, Budget 2018 will be keenly watched for any announcement towards that end.
PwC and Business Standard look at the present scenario in the banking sector, the issues facing it, and the Budget expectations the industry has from Finance Minister Arun Jaitley:
KEY DEVELOPMENTS
Digitisation push
Various measures and app-based services have been introduced to promote digitization
Cabinet has approved the proposal that the govt would bear merchant discount rate (MDR) charges on digital transactions up to Rs 2,000 for two years.
In Budget 2018, the government might introduce additional incentives like tax rebates of, say, 0.2% on digital transactions up to a threshold for small businesses
Capital infusion in PSU banks
The govt has announced a recapitalisation scheme to infuse capital in the banking system.
Additional capital may be infused based on banks’ governance structure, bad debt recovery plan, capital planning & budgeting and HR strategy.
ISSUES FACING THE SECTOR & WHAT INDUSTRY WANTS
Bankruptcy code: It is still evolving. It needs to be strengthened and the objective and spirit have to be adequately demonstrated
Home loan benefits: Considering higher unit prices in metros, higher tax deduction is needed on principal repayment of housing loan under section 80C
Insurance penetration: Currently, a high GST rate of 18% is applicable on insurance premium. That is a drag, especially given a weak life insurance penetration of under 4%.
Regulatory timelines: Various regulations like IFRS, margining of non- centrally cleared trades, New Basel III norms are under way, but clearer timelines need to be defined.
Pension plans not tax-friendly: The pension from annuity is currently treated as income and taxed accordingly which is unfavourable when compared with PF, PPF, etc.
LTCG tax benefits: The MF industry and brokerages expect long-term capital gains tax benefits for equities/equity-oriented funds to continue.
Dividend distribution tax: There is no dividend distribution tax applicable on equity-oriented mutual funds but debt mutual funds, AMCs pay DDT at the rate of 28.33%. Industry expects removal of this dividend distribution tax to improve investor sentiment.
0 notes
ezybizadviser · 3 years ago
Text
NRI Tax Return Filing- Some points to be kept in mind
NRI Tax Return Filing
 Whether obligation of Income Tax Return Filing is only on the Residents or whether Nonresidents are also required to their tax return in India? This is a question which comes in the mind of many individuals.
 As per the provisions of the Income Tax Act, 1961 ( the Act) every person having taxable income in excess of prescribed amount is required to prepare and file his or her income tax return on or before the due dates prescribed under the act.
 Therefore, the obligation of tax return filing is on both the residents as well as non residents. In this write up, we would be discussing about NRI Tax Return filing in India.
Tumblr media
 Following points shall be kept in mind before filing income tax returns in case of NRIs:
 a)     Determination of Residential status
 Unlike residents, whose income earned in India as well as outside India is taxable in India, in case of nonresidents, only income earned in India is taxable and income earned outside India is not taxable in India.
 b)    Choosing right income tax return form
 Income tax return form of nonresidents are different from those residents, accordingly, return should be filed in correct ITR form.
 c)     Provisions of both domestic law as well as Double Tax Avoidance Treaty shall be kept in mind while computing tax liability and filing Income Tax return.
 d)    There are certain incomes of NRIs which are not taxable in India like
 -         Any income which is earned outside India
-         Any interest received on NRE account deposit
-         Investment in foreign currency is taxed at concessional rate
-         Any assets received as gift in India or as inheritance
e)     In following situations, NRIs shall file their Income Tax Return (ITR) in India
 -         In case of taxable income more than Rs 2.5 lac
-         In case of any refund due
-         In case of any gain or loss on sale purchase of shares or properties
-         In case of any losses to be carried forward
  Due date for NRI Tax return filing
 Like residents, the due date for filing the Income tax return of NRIs is 31st July following the end of every fiscal year. Filing of returns by electronic mode is mandatory in cases where the taxable income exceeds INR 500,000.There is no system of joint filing of tax return with spouse.
 List of documents required for filing Income Tax return by NRIs
 Following documents are required for filing NRI Tax Return:
 Copy of PAN, Passport and Aadhar Card
Copies of all the Bank Statement of all the banks maintained for FY
Copy of salary certificate or Form 16/16A or salary slips
For determining the residential status, details of stay in India in last 1 year, last 4 years, last 7 years and last 10 years
Details of any foreign income earned outside India
Details of investment u/s 80C in PF, LIC, mutual fund, PPF
Tax identification number in the foreign country
Any other income in India
Income tax portal Login password
 Above points shall be kept in mind while filing NRI Tax return for FY 2021-22 which will commence in the month of May 2022
0 notes