Fintotal's Blog

PAN Card Status

2013-05-21T22:37:00.005-07:00

Search PAN Card No Online by Name and Date of Birth

If you are looking to find PAN card number or PAN card status of an individual or an organization you can search for PAN card details online at the official website of the Income Tax Department at https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourPanLink.html (In case the link does not work in Chrome or IE try opening in Firefox).

All you need to enter is the Date of Birth or Date of Incorporation and Name and the screen will display PAN no along with PAN status and jurisdiction if PAN number exists. Entering date of birth/incorporation and surname is mandatory for searching PAN card number.

Source: PAN Card Status

Fintotal.com in Rediff Tax Chat - 2

2013-03-07T03:32:00.000-08:00

This is the second part of Rediff Tax chat held on Feb 27th. Below are the excerpts

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PNDIXIT asked, My daughter is 19 yrs old studying in Medical college I am putting 3 lacs in her savings A/C which is automatically coverted in to Fixed deposite. This amount she pays as Course fee every year thru cheque to Medical Institute. The interest earned on this money during the year will be clubbed in my income or as her income as bank deducts TDS on her name as per her PAN details.
Kripananda Chidambaram, Director- fintotal.com answers, Technically speaking since she has not started working, her income will be clubbed as yours.

okok asked, Can be offset the tax on Short Term Capital Gain by Long term capital loss in Equity?
Kripananda Chidambaram, Director- fintotal.com answers, No, you are not allowed

Syed asked, Sir I was abroad for 13 years as NRI and started to work from last April 2012 and paying TDS for my salary but as i have bonus received from previous company (abroad)will be taxed or exempted?Can you advice
Kripananda Chidambaram, Director- fintotal.com answers, Your residence status will be Resident, Not Ordinarily Resident if you were an NRI in 9 out 10 years or if your total stay in India did not exceed 729 days in the last 7years put together. If these conditions are met your bonus from abroad will be tax free this year.

sid asked, Do you think ICICI prudential pension scheme is good? or any suggestions
Kripananda Chidambaram, Director- fintotal.com answers, You can write to us at info@fintotal.com

Debabrata asked, I want to get 50% rebate on Rs50,000/-to be invested on new RG Eq Saving Scheme for tax avoidance & growth. Which is the best Fund available under this scheme? Regards, Debabrata
Kripananda Chidambaram, Director- fintotal.com answers, Please refer the following link for list of RGESS eligible funds: http://www.knowledge.fintotal.com/List-of-RGESS-Eligible-NSE-BSE-Shares/5727

okok asked, Can be offset the tax on Short Term Capital Gain by Long term capital loss in Equity?
Kripananda Chidambaram, Director- fintotal.com answers, No you cannot set off.

patilrkreddy asked, Hello Mr. Kripananda, Can we get tax exemption for two home loans? The tenure of my first home loan is going to complete in Dec-2013 and i am planning to go for another property. Regards, ram
Kripananda Chidambaram, Director- fintotal.com answers, Yes, you can claim benefits on interest on home loans. Own house needs to be marked as residence and you can claim a maximum of only Rs 1,50,000. And on the other home you can get the benefit with out any upper limit.

yogesh asked, Sir, I have icici lombard mediclaim last four years, should be change to apollo much?
Kripananda Chidambaram, Director- fintotal.com answers, We can have this at a different forum or write to us at info@fintotal.com

suri asked, how is MaxBupa insurance?
Kripananda Chidambaram, Director- fintotal.com answers, Its good.

Syed asked, What about ING LIFE Insurance policy pls suggest
Kripananda Chidambaram, Director- fintotal.com answers, I would suggest go for ING term policy.

TIMIR18 asked, WHAT ABOUT RELIANCE EQUITY OPP. FUND & RELIANCE REGULAR SAVING FUND
Kripananda Chidambaram, Director- fintotal.com answers, Both are good performing funds.

asdfasdf asked, PLZ RESPOND - appreciate your suggestion: Are these good policies. Have these for 4 years. Should I exit or continue to invest: SBI Life HORIZON II, Bharti Axa Aspire Life and ICICI SmartKid RP
Kripananda Chidambaram, Director- fintotal.com answers, We do not recommend mixing insurance with investments. Insurance should be used only as risk management tool. We will like you to stop paying further and covert them to fully paid up policies.

sid asked, profit from equity invested below 1 year is taxable? if yes, please provide percentage?
Kripananda Chidambaram, Director- fintotal.com answers, Yes, it is taxable as it would be short term capital gains and the rate would be 15.45%.

loku asked, Please answer my question: I am holding shares in demat account for more than 4 years and now if i sell will it be taxable?
Kripananda Chidambaram, Director- fintotal.com answers, No.

xyz asked, Is it advisable to invest in RGESS for a retired person to aavil tax rebate
Kripananda Chidambaram, Director- fintotal.com answers, It is suitable but we do not recommend RGESS as the rules are uncleared and complicated.

Lokesh asked, My father-in-law wants to buy medical insurance to cover himself and his family. Any suggestion he is Govt employee and his age is aroung 54
Kripananda Chidambaram, Director- fintotal.com answers, You can go for Max Bupa Heartbeat. Please refer the following link http://www.productanalysis.fintotal.com/Max-Bupa-Heartbeat/2093

ravi985 asked, if medical bills are not there ,how to save the tax
Kripananda Chidambaram, Director- fintotal.com answers, You need to produce bills to claim benefits on medical allowance of up to Rs 15,000, else it becomes taxable.

TIMIR18 asked, HOW TERM INSURANCE IS EFFECITIVE ?
Kripananda Chidambaram, Director- fintotal.com answers, Insurance is meant to cover the risk of loss of income in the absence of the earning member. Insurance cum investment products such as ULIPs or traditional policies is not a favourable combination. Refer the link for better understanding http://www.knowledge.fintotal.com/insurance/Term-Insurance-is-the-Only-Insurance-Worth-Buying/2706

sjf2k2 asked, if i buy stocks for 2 Lakh and sell it in a year for 2.5L . How much % of Tax i am supposed to Pay ? I am already in 30% taxable slab.
Kripananda Chidambaram, Director- fintotal.com answers, Gains in stocks are taxed separately as short-term capital gains tax and long-term capital gains tax. In case you buy and sell within 1 year then you need to pay a tax of 15.45% as short-term capital gains tax. In case you sell the shares after 1 year, you need not have to pay any tax. Long-term capital gains are tax free.

swapnil asked, i want to invest 40000 for 80 c deductio suggest the best mix of investment for the same
Kripananda Chidambaram, Director- fintotal.com answers, You can refer the following link to know about best mix of investments. http://www.newsanalysis.fintotal.com/Tax-Planning-for-Salaried-Employees-A-Last-Minute-Guide/5908

loku asked, I am holding shares in demat account for more than 4 years and now if i sell will it be taxable?
Kripananda Chidambaram, Director- fintotal.com answers, Long term capital gains are applicable for you and LTCG tax is nil for equities.

samul asked, suggest a mediclaim with tax benefits and money back.
Kripananda Chidambaram, Director- fintotal.com answers, We strongly recommend you not to mix investments and insurance. Never go for any insurance or mediclaim that gives back your money. Insurance has to be used effectively as a risk management tool. We suggest Apollo Munich for your mediclaim needs. You get a rebate of up to Rs 15000 u/s 80D

Taxsuxk asked, are RBI tax bonds above 1 lac limit?
Kripananda Chidambaram, Director- fintotal.com answers, They do not have exemption on the investment but interest is tax free.

sid asked, Can we save beyond 80C limit? say beyond 1 lack
Kripananda Chidambaram, Director- fintotal.com answers, Yes, you can invest in RGESS.

nm1 asked, Is Fidelity India Growth fund (L & T now) good for investing?
Kripananda Chidambaram, Director- fintotal.com answers, Yes it is a good fund. Refer the review http://www.productanalysis.fintotal.com/Fidelity-India-Growth-Fund/876

ps asked, Can we get tax benefit for home loan of under construction project?
Kripananda Chidambaram, Director- fintotal.com answers, You can get tax deduction on principal amount of home loan u/s 80C and interest can be claimed after construction in 5 equal installments.

SHARMA asked, DEAR SIR WE ARE A CONSULTANCY AND POLLUTION EQUIPMENT MANUFACTURER AND SERVICE3 PROVIDER. WE ARE FACING PROBLEM FOR SETTLMENT OF BALNCE SHEET BECAUSE WE HAVE DEBTORS ON ACTUAL BASIS IN BUSINESS OF 1 CRORE AND DEBTORS IS APPROX 55 LAC . BUT CREDITORS ALMOST NIL 2-3 LAC BECAUSE ALL OUR PARTY OF PURCHASE IN ADVANCE BASIS SO HOW WE SET OUR BALANCE SHEET LAST YEAR WE MANAGE SOME CONTRACTOR AND INCREASE CREDITOR THAN WE SET. PL SUGGEST WHAT IS THE BEST WAY TO SET A BALANCE SHEET
Kripananda Chidambaram, Director- fintotal.com answers, We may have to take it in another forum or you may write your query at info@fintotal.com

raju asked, Hi there, You have suggested Apollo Munich as best in Mediclaim policy can you pls explain is this best in terms of getting deduction or medical wise
Kripananda Chidambaram, Director- fintotal.com answers, The deductions is same for all the mediclaim policies. In terms of features and benefits we quite like Apollp Munich

sid asked, wht is RGESS? why limit for 10lacs
Kripananda Chidambaram, Director- fintotal.com answers, RGESS scheme is applicable only to individuals. Thus, the benefit of tax deduction is not available to any other category of tax payer. The maximum deduction will be on investment up to Rs. 50,000 during the Financial Year 2012-13. The deduction will be at the rate of 50 per cent of the amount invested in equity shares. The total income of the individual should not exceed Rs. 10 lakhs. Hence, if the income exceeds Rs. 10 lakhs, the benefit will not be granted.The assessee should be new retail investor in shares.There would be lock in period of three years.

HARSHADA asked, EXPLAIN ME RAJEEV GANDHI SCHEME OF TAX SAVING
Kripananda Chidambaram, Director- fintotal.com answers, RGESS scheme is applicable only to individuals. Thus, the benefit of tax deduction is not available to any other category of tax payer. The maximum deduction will be on investment up to Rs. 50,000 during the Financial Year 2012-13. The deduction will be at the rate of 50 per cent of the amount invested in equity shares. The total income of the individual should not exceed Rs. 10 lakhs. Hence, if the income exceeds Rs. 10 lakhs, the benefit will not be granted. The assessee should be new retail investor in shares. There would be lock in period of three years.

Aazad asked, is LIC Jeevan Saral ATM plan good for tax saving
Kripananda Chidambaram, Director- fintotal.com answers, Insurance cum investment plans is an expensive way to save tax. You may look at ELSS options for 80C

bh asked, If saving interest more than 10000 in sb account is also taxable
Kripananda Chidambaram, Director- fintotal.com answers, Yes it is taxable

sid asked, Can we save beyond 80C limited?
Kripananda Chidambaram, Director- fintotal.com answers, There are limited options after 80C. Make sure you fully take benefits of sections 80D, 80E and 80G. Kindly refer to http://www.tax.fintotal.com/Sections/68

raje asked, my salary is 2.4 pa.how can i save tax
Kripananda Chidambaram, Director- fintotal.com answers, To know how to save tax you can read the article on tax planning for salaried employees in fintotal.com the link is http://www.newsanalysis.fintotal.com/Tax-Planning-for-Salaried-Employees-A-Last-Minute-Guide/5908

xyz asked, what is the best safe investment for a retired person to beat inflation
Kripananda Chidambaram, Director- fintotal.com answers, In the long run only gold, real estate and equity related products have the power to beat inflation. You may find some useful articles in http://retired.fintotal.com/

vicky asked, Is there is any tax rebate on Gift to my wife who is not earning
Kripananda Chidambaram, Director- fintotal.com answers, Gift to your spouse is not taxable.

mbsrao asked, is there any possibility of hiking of HBA interest or 80cc limit?
Kripananda Chidambaram, Director- fintotal.com answers, Not sure, we may have to wait for the next 24 hours

sourabh asked, i would like to invest 35000 rs in order to take rebate of 1 lac as per individual . kindly suggest where to invest
Kripananda Chidambaram, Director- fintotal.com answers, Invest in ELSS - ICICI Prudential Tax Plan, Franklin India tax Shield, etc are good funds. Refer link for more info http://www.mutualfunds.fintotal.com/index.php?type=Tax%20Saving%20Funds

Mohnish asked, Hello, Can you please confirm if below are good mode for tax savinfg 1. PPF- Max we can put 70k. Full benefits. 9.5 % interest after 20 years 2. ELSS will be Canara Robeco Equity Tax saver ICICI Pru Tax plan Franklin India Tax shield. If i invest 10,000 do i get 1000 saved from tax 3. Term plans are best for insurance rather than ULIP. I believe LIC is perfect. For mediclaim- Apollo Munich Easy Health is best 4. Rajiv gandhi scheme for people beloe 10 lac- pls provide criteria for tax 5. best pension plan are they covered in tax Mohnish
Kripananda Chidambaram, Director- fintotal.com answers, More or less yes

TIMIR18 asked, WHAT IS BEST PPF OR MUTUAL FUND ?? FOR WEALTH CREATION IF MUTUAL FUND WHICH ONE IS BEST FOR LONG TERM SAY 15 YEARS
Kripananda Chidambaram, Director- fintotal.com answers, PPF and MFs cannot be compared. The returns on PPF might not beat inflation and the term is 15 years whereas equity mutual funds can beat inflation and are not subject to lock in period. Any one among IDFC Premier Equity Fund, UTI MNC Fund, ICICI Prudential Discovery Fund for wealth creation.

rahul asked, i don't want to pay tax as my hard earn money goes to scam every year. why can't we get rebate for all scams happen during the current financial year?
Kripananda Chidambaram, Director- fintotal.com answers, Rahul, a great thought! But by the time these scams are proved you would have retired.

bumba asked, I am staying in rented house, I will show rent receipt for HRA, Is it mandatory to produce owner's PAN card?.....pls say in detail
Kripananda Chidambaram, Director- fintotal.com answers, No, it is not mandatory, though many organisation insist if the monthly rent exceeds Rs 10,000.

ChidduBaba asked, Is premium for ULIP deductible beyond limit under 80C? Or is it subject to the 1 lakh cap?
Kripananda Chidambaram, Director- fintotal.com answers, Premium for ULIP's get deduction under 80C and yes it is subject to 1 lac cap.

sadshubhi asked, how can i get tax on 2.00 lacs per annum
Kripananda Chidambaram, Director- fintotal.com answers, Income upto Rs 2 lakhs is not taxable.

bbt asked, dear sir, 1 lac limit exhausted. can we take mediclaim policy on my son's name who is above 25 yrs to claim tax benefit
Kripananda Chidambaram, Director- fintotal.com answers, No, you cant take a mediclaim policy on his name but you can go for family floater.

sunny asked, hey wht abt LIC policies
Kripananda Chidambaram, Director- fintotal.com answers, Insurance cum investment plans are very expensive way to save tax. Insurance should be used only as a risk management tool.

chandrama asked, Dear Mr Chidambaram-My question is slightly personal.Are you related to the FM Mr P. Chidambaram in anyway ?
Kripananda Chidambaram, Director- fintotal.com answers, Nope! Not sure should I say fortunate or unfortunate.

Taxsuxk asked, How is ICICI tax saver ELSS ?
Kripananda Chidambaram, Director- fintotal.com answers, It is one of the best ELSS funds. Refer the link for its review http://www.productanalysis.fintotal.com/ICICI-Prudential-Tax-Plan/2666

yesu asked, can an existing demat a/c holder benefit under RGESS
Kripananda Chidambaram, Director- fintotal.com answers, Yes, unless you have traded in equity mutual fund or shares before.

Arav asked, Is Dividend reinvested in a ELSS Scheme with Dividend Reinvest option exempt under Sec 80(C)
Kripananda Chidambaram, Director- fintotal.com answers, No, only the initial amount qualifies.

unarinam asked, Shall I purchase term policy through agent. Is there any differnce between online and policy through agent?
Kripananda Chidambaram, Director- fintotal.com answers, The online policies are cheaper as compared to the ones taken from the agent because of the agent commissions and other charges. Apart from this there is no difference. Everything else is same.

Rajeev asked, which equity mf is good for investment, is it right time to invest in mf
Kripananda Chidambaram, Director- fintotal.com answers, We recommend large cap equity diversified funds. You may find the list here http://www.mutualfunds.fintotal.com There is so such thing as right time or wrong time when it comes investing in MFs for long term. You may follow the simple rule: Invest when you have funds and do not need it in the next 5 years or so. The right time to withdraw is when you need it. Nobody can time the market.

kashif asked, for low to medium risk appetite what are the best investment tools?
Kripananda Chidambaram, Director- fintotal.com answers, Postal saving schemes like NSC, PPF; 5 year fixed deposit for tax purpose and else debt mutual funds.

Chandra asked, Which one is best mutual fund for SIP investment?
Kripananda Chidambaram, Director- fintotal.com answers, Following is the list of best MF's in 2013: http://www.knowledge.fintotal.com/mutual-fund/Best-Mutual-Funds-for-2013/5723

sathish asked, RGESS is for salaried
Kripananda Chidambaram, Director- fintotal.com answers, Yes, it is for salaried employees and salary should be less than 10 lacs.

deshmukh asked, 80C
Kripananda Chidambaram, Director- fintotal.com answers, We recommend ELSS for 80C tax saving options. ULIPs and Traditional Insurance is an expensive way to save tax. Kindly refer: http://www.newsanalysis.fintotal.com/Tax-Planning-for-Salaried-Employees-A-Last-Minute-Guide/5908

raman asked, This year tax saving on Infra structure bond exists?
Kripananda Chidambaram, Director- fintotal.com answers, No, Infra bonds have been scrapped this year.

shashi asked, hai, which MF is really good for long term (3-5 years)
Kripananda Chidambaram, Director- fintotal.com answers, 3 to 5 years is medium term and long term could be more than 5 years. For medium term needs invest in HDFC Balanced Fund or HDFC Prudence Fund. Refer the link for more info http://mutualfunds.fintotal.com/

TIMIR18 asked, SIR WHICH TERM INSURANCE IS BEST NOW ??
Kripananda Chidambaram, Director- fintotal.com answers, Go for any online term policy like aegon religare iterm, hdfc click2protect etc.

indrani asked, sir, I just visited your site and found very interesting...my compliments...
Kripananda Chidambaram, Director- fintotal.com answers, Thanks, and keep coming back

Lokesh asked, Please i am interested in investing in MF. Can you please let me know the non-tax saving MF that will give good return?
Kripananda Chidambaram, Director- fintotal.com answers, Invest in HDFC Top 200 or HDFC Equity Fund or DSP Blackrock Top 100 Fund. Just refer the link for the list http://www.knowledge.fintotal.com/mutual-fund/Best-Mutual-Funds-for-2013/5723

amar asked, let govt to exempt upto 3L, and create more tax slabs above it....
Kripananda Chidambaram, Director- fintotal.com answers, Yes, that will bring relief to salaried employees. In fact I had written one article on what a dream budget for salaried should look like: http://viewpoint.fintotal.com/Union-budget-2013-The-ideal-tax-structure-for-a-salaried-employee-Of-course-it-s-just-a-wish/6150

TIMIR18 asked, IN WHICH SECTION TERM INSURANCE PREMIUM GET DEDUCTION & IS IT EFFECTIVE MEAN.
Kripananda Chidambaram, Director- fintotal.com answers, Yes, term insurances are effective mean for insurance. Term insurance get deduction under 80C.

PNDIXIT asked, As per present IT act ,Fixed deposite interests attracts Tax but the interest earned on savings A/c is taxable or not if yes what is the present savings A/c interest exemption limit.
Kripananda Chidambaram, Director- fintotal.com answers, Till a year back savings account was taxable. In the 2012 budget the proposal had come and savings account interest up to Rs 10,000 is tax free.

JITENDAR asked, WHAT IS THE BEST TERM INNSURANCE PLAN FOR 50 LAC
Kripananda Chidambaram, Director- fintotal.com answers, Take any online term policy

raghu asked, my kids are studying in scool and college, and i believe their tution fee is part of 80C. and 80c limit is 1 lacs, is that correct?
Kripananda Chidambaram, Director- fintotal.com answers, yes, it is correct 80C limit is 1 lac. Tution fee is a part of 80C deductions.

TIMIR18 asked, SIR WHICH TERM INSURANCE IS BEST NOW ??
Kripananda Chidambaram, Director- fintotal.com answers, Go for any of the online term policies. To name a few good policies- Aegon Religare iTerm, HDFC Click to protect, Kotak Life insurance, etc.

harmeets asked, RGESS is only for those with income below 10 lakhs??????????
Kripananda Chidambaram, Director- fintotal.com answers, yes, it is only for those whose income is less than 10 lacs.

Apps asked, What is RGESS, How to invest in the same ?
Kripananda Chidambaram, Director- fintotal.com answers, Wait until next year because this year there are very few funds for RGESS, but in case you want to know more about RGESS you can refer the link http://www.tax.fintotal.com/Sections/80CCG-Tax-Rebate/4546/68

jhinga asked, How much do u expect the tax slab will be for next f.y.
Kripananda Chidambaram, Director- fintotal.com answers, There are talks of marginal increase in the upper limit, but we need to wait for another 24 hours to get the answer!

TIMIR18 asked, HOW IS RELIANCE TAX SAVER FUND
Kripananda Chidambaram, Director- fintotal.com answers, It is a good fund. Read review of this fund http://www.productanalysis.fintotal.com/Reliance-Tax-Saver-ELSS-Fund/886

RAM asked, TELL ME ANY GOOD MEDICLAIM POLICY
Kripananda Chidambaram, Director- fintotal.com answers, Apollo Munich Easy Health is one of the best mediclaim policy.

Lokesh asked, Please i am interested in investing in MF. Can you please let me know the non-tax saving MF that will give good return?
Kripananda Chidambaram, Director- fintotal.com answers, Yes, MF is a great vehicle to invest in stocks. SIP can work wonders for you. Kindly visit http://www.mutualfunds.fintotal.com

rupesh asked, i have 10.0 Lac plus salary. already exhausted 1.0 lac 80cc bracket. what other options to save further tax? 80dd or any other??
Kripananda Chidambaram, Director- fintotal.com answers, Refer the answer given to Ravi

neo asked, I want to save tax on 50 thousand rs. sugeest me the best .......
Kripananda Chidambaram, Director- fintotal.com answers, Invest in ELSS to get tax benefit under 80C.

verma123 asked, How to get max benefit? What are the tax benefits available beyond 80c
Kripananda Chidambaram, Director- fintotal.com answers, Refer the answer given to Ravi

kashif asked, which is better option...ELSS or ULIP??
Kripananda Chidambaram, Director- fintotal.com answers, ELSS is the better option. ULIPS have higher charges than ELSS so returns on ELSS would be higher. For insurance we should go for term plans rather than ULIPS.

Rakesh asked, Please suggest anything over and above 80C
Kripananda Chidambaram, Director- fintotal.com answers, Refer the answer given to Ravi

angshu asked, will there be any increase in tax exemption limit for individuals beyond 20000
Kripananda Chidambaram, Director- fintotal.com answers, There are talks of the exemption limit going up marginally, though not sure what will exactly come out tomorrow.

kAMLESH asked, FOR SALARIED PEOPLE WHAT IN AMOUNT OF NON TAXABLE INCOME
Kripananda Chidambaram, Director- fintotal.com answers, If your income is below Rs 2 lakhs, your income is not taxable. Refer link http://www.knowledge.fintotal.com/Income-Tax-Slab-for-FY-2012-13/5725

ravi asked, apart from 80C and loan interest .. is any other way of saving tax
Kripananda Chidambaram, Director- fintotal.com answers, No, there are very limited options after 80C. But ensure you fully take benefits of 80D, 80E and 80G also. Kindly refer to http://www.tax.fintotal.com/Sections/68

Lokesh asked, I am having Taurus Tax Saving MF(G) which i had invested in 2009. Should i hold or exit.
Kripananda Chidambaram, Director- fintotal.com answers, It is an average fund so to know more about the fund please check the link: http://www.productanalysis.fintotal.com/Taurus-Tax-Shield-Fund/885

Jay asked, Please suggest anything over and above 80C?
Kripananda Chidambaram, Director- fintotal.com answers, Please refer the answer given to Sat.

chandu asked, How do I avoid paying tax altogether ? Ido not want to lose my hard earned money to the Govt of India ...
Kripananda Chidambaram, Director- fintotal.com answers, Chandu, there is cost for living in a civilised society. We all need to contribute, so that India prospers together. It is not a great idea to completely avoid tax, but ensure you do not pay more than what is required. You may read this to know further http://www.newsanalysis.fintotal.com/Tax-Planning-for-Salaried-Employees-A-Last-Minute-Guide/5908

kAMLESH asked, WHAT R THE WAY TO SAVE TAX
Kripananda Chidambaram, Director- fintotal.com answers, If you are a salaried employee, this article will help you with the answer to your question - http://www.tax.fintotal.com/Must-Knows/How-to-Save-Income-Tax-on-Salary/5696/65

Kunal asked, is it true that infrastructure bond has been closed..if yes then is there any other options to invest more than 1 lakh 80 C bracket to save tax
Kripananda Chidambaram, Director- fintotal.com answers, yes infrastructure bonds have been scrapped this year. The other option could be to invest in RGESS.

sat asked, is there anything above 100000/- saving
Kripananda Chidambaram, Director- fintotal.com answers, Apart from 80 C deductions of Rs 1 lakh, you can claim deductions u/s 80D for medical premiums, Rs 20000 on RGESS (if income less than Rs 10 lakhs), more on donations. Refer this link for details http://www.knowledge.fintotal.com/Income-Tax-Deductions-Financial-Year-2012-13/709

Shivaji asked, part from 80C and loan interest .. is any other way of saving tax
Kripananda Chidambaram, Director- fintotal.com answers, yes apart from them 80D that is tax rebate on mediclaim policies, 80CCG i.e. RGESS, 80E tax rebate for interest amount on education loan are the other way to save tax.

Arav asked, What kind of changes we can expect in the coming budget which can help more savings for salaried class
Kripananda Chidambaram, Director- fintotal.com answers, Arav, it is very difficult to make predictions at this stage. Just stay glued for 24 hours. But do not have great expectations!

Dinesh asked, What are last minute short term tax saving investments
Kripananda Chidambaram, Director- fintotal.com answers, Read through the link for detailed note http://www.newsanalysis.fintotal.com/Tax-Planning-for-Salaried-Employees-A-Last-Minute-Guide/5908 The shortest term is 3 years that is ELSS.

Prateek asked, What are the best tax saving instruments which can give good returns
Kripananda Chidambaram, Director- fintotal.com answers, Prateek, suggest you for ELSS. They have the power to beat inflation in the long run. You may invest in any one of the below: ICICI Pru Tax plan Franklin India Tax shield Canara Robeco Equity Tax saver

mevishal4u asked, what are the last minute quick tips for tax saving
Kripananda Chidambaram, Director- fintotal.com answers, Read through this link http://www.newsanalysis.fintotal.com/Tax-Planning-for-Salaried-Employees-A-Last-Minute-Guide/5908R

Kunal asked, kindly advice the best ELSSS to invest
Kripananda Chidambaram, Director- fintotal.com answers, Any one among ICICI Prudential Tax Plan or Franklin India Tax Shield or Canara Robeco Equity Tax Saver Fund

indrani asked, what is best beyond 80C ?
Kripananda Chidambaram, Director- fintotal.com answers, RGESS could be best option to invest beyond 80C

Funny take on Budget 13:10 Commandments

2013-03-03T22:40:00.000-08:00

The yearly budget has always been very complicated 'jigsawique' for a common man. What he would only like to know how is whether it has affected his earnings and whether his monthly expenditure will go down or not. So here is a funny take on the Budget on the lines of 10 Commandments.

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Budget 2013:Startup Entrepreneurs - Architects of new economy

2013-02-23T03:43:00.000-08:00

Kripananda Chidambaram

The days are closing in for the Union budget 2013 and the finance minister must be doing his best to reach out to all sections of the economy. The government will have a political agenda to fulfill as well.
In this balancing act the government should not miss out on one potential growth engine of the economy i.e. small business entrepreneurs. In fact the whole world has acknowledged the importance of small businesses and the role they play in the sustainability of the economy.

I hope the government this year lays a strong foundation to make India a country of start-ups.

Small and Medium Enterprises (SMEs) have been among the most powerful generators of new jobs in the past. Hence we need to focus more on supporting these small businesses and creating an amicable environment for them to prosper.

Though start ups may not qualify as SME in the exact sense, but eventually they become one of them. The risk of starting up in India is very high; failures discourage future attempts and create some sort of mis-culture. Though there is no record per se, it can be said that only about 5% of startups become successful. Government here can play a huge role by creating an ecosystem for entrepreneurship to grow and prosper.
Entrepreneurship should be given a step up and encouraged to the fullest. The current uncertainty surrounding the economic climate may have prompted many business owners and would-be entrepreneurs to put off on plans. Though they are generally known to take higher risks, the current situation looks more risky with less potential rewards.

Broadly start ups need support in the following areas:

Easy access to bank and risk capital

Private capital should be encouraged to flow freely into start up firms. Hopefully there will be full clarity on the last budget’s proposal on taxing investments made by angel investors as other income.
The budget should provide for further tax breaks in long term capital gains tax on sale of share for domestic and foreign VCs alike.
Bank lending: Many startups are deprived of funding from proper banking channel. Unlike large businesses, which have access to capital markets for funding, many startups have few formal channels of financing. It is extremely difficult to obtain bank loans unless the business owners’ real estate assets are kept as collateral.
The government should create a central startup loan guarantee portfolio that shall act as collateral for small business loans. This shall encourage both private and PSU banks to actively lend to start up businesses.

Favorable corporate tax policy encouraging new start ups

Start ups should be exempt from payment of direct taxes for the first three years of their existence. This will help them retain vital cash within their business for future growth and expansion.
Similarly start ups should be exempt from paying any sort of service tax in the first three years of business. This will encourage large companies to avail services of startups as they shall have a cost advantage over other established players. Even further, large companies should be allowed 110% value of invoice raised by a startup as expenses. Startups should be exempt from VAT and this will make their products cost competitive.

Tax breaks for employees working in startups

Acquiring and retaining talent is one of the biggest challenges a startup company has to deal with. Tax breaks can be given to employees working in a startup. The tax breaks can be in the form of higher exemption limit. Say up to Rs 5 lacs the tax rate can be nil. This will attract experienced and highly qualified talent.
Creating clusters in the lines of SEZ
Similar to SEZs, clusters for startups should be created. Tax breaks should be given to various service providers in the clusters. For example, rent earned from a property in the cluster can be tax exempt. Similarly power and other infrastructure service providers would get tax breaks.
Loop holes: I fully agree that this will create huge opportunity for unscrupulous players to split their business into smaller units and come in the market disguised as startups but that cannot be an excuse for making an attempt at this.

We can look at a separate entity for a startup similar to Pvt Ltd, may be SUP. SUP will be valid for 3 years and it will automatically become any other entity.

Here is how it should look like:

One has a business plan- applies for registration- presents it to the panel-get an SUP certificate- sets up an office in the cluster-attracts risk capital and bank funding- hires talent- gets preference purchases- gets to retain cash for 3 years and grows to become a successful company.

Looks too big a dream!

Yes, it may seem a distant dream but if the policy makers can show the will and resolve, this can create a miracle in our economy. The culture of the country can be impacted. We will become a land of innovators and risk takers. A new breed of workers will emerge. Entrepreneurs are known to be frugal with resources and will extract the most of the limited resources.

Eventually these startups end up becoming SMEs and large enterprise boosting employment growth in the long run.

One more important aspect of smaller business is decentralization of power; perfect antidote to crony capitalism and concentration of powers among a few.

Fintotal.com in Rediff Tax Chat

2013-02-20T03:54:00.000-08:00

We had a Tax Chat session in Rediff yesterday and was happy to get a overwhelming response. The fintotal team answered the queries and doubts related to last minute tax saving for Employees.

Here below are the excerpts from the Chat. We managed to answer 160 queries and wish we could answer more

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ashwani asked, my age is 76 purchased a house in 1982 payment instalments paid 220000/- sold in 2012 july for 2000000/-.wt shuold be done to save tax
Kripananda Chidambaram, Director- fintotal.com answers, You need to invest the gains another house or invest in REC or NHAI bonds. Pls refer http://www.knowledge.fintotal.com/property/Save-on-Capital-Gains-Tax-while-Selling-Property/2629
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INBHATIA asked, Savings allowed( insurance,pf etc ) are 1lac plus 20k towards infra bond or is there a possibilty to increase this ?
Kripananda Chidambaram, Director- fintotal.com answers, There is no 20k this year for infrastructure bonds. You may read the article http://www.newsanalysis.fintotal.com/Tax-Planning-for-Salaried-Employees-A-Last-Minute-Guide/5908
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mano asked, for second home loan, if rented, do i need to deduce show the rent as income and claim entire interest amount?
Kripananda Chidambaram, Director- fintotal.com answers, Yes you need to show actual rent received and deduct property tax, deduct 30% of the rental value and deduct the interest of home loan without any limit.

pai.vikas@rediffmail.com asked, I like to invest 5000 per month in mutual funds .pl suggest mutual funds .
Kripananda Chidambaram, Director-fintotal.com answers, Please refer to http://www.knowledge.fintotal.com/mutual-fund/Best-Mutual-Funds-for-2013/5723 for fund recommendation.
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sunilgr asked, Hi amorey i recently joined a company my package is 8 lakh before that i was working in a company where my salary was 20k so do i have to pay tax for these year
Kripananda Chidambaram, Director- fintotal.com answers, You will come under tax bracket if your annual income exceeds Rs 2 lacs
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jatin asked, I was on a career break and joined an employer in November. My package puts me in a 20 per cent tax bracket. However, in the current finance year, I will be paid salary for 5 months. How will I be taxed? Will I be taxed based on the salary received or based on my package?
Kripananda Chidambaram, Director- fintotal.com answers, Only on the basis of salary received in the 5 month period. You may read more on this http://www.newsanalysis.fintotal.com/Tax-Planning-for-Salaried-Employees-A-Last-Minute-Guide/5908
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swami asked, my annual net income is Rs.360000 and am having one LiC for 897 quarterly, and Iam claiming HRA. Where i can invest to avoid tax
Kripananda Chidambaram, Director-fintotal.com answers, Well there a host of tax saving options left for you. Please go through post http://www.newsanalysis.fintotal.com/Tax-Planning-for-Salaried-Employees-A-Last-Minute-Guide/5908

naresh asked, I am being paid Rs.25,000/- per month as consolidated salary. Is the entire annual amount is taxable minus exemption. I am living in a rented house.
Kripananda Chidambaram, Director- fintotal.com answers, To educate yourself on this kindly refer http://www.newsanalysis.fintotal.com/Tax-Planning-for-Salaried-Employees-A-Last-Minute-Guide/5908
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Vgokak asked, Hi I am Vaju I have already saved my 1 Lac apart from this where I can invest and how much tax I can save I am in 30% bracket
Kripananda Chidambaram, Director-fintotal.com answers, If you have exhausted tax deduction u/s 80C you do not have more tax saving investments. But you can claim deductions on mediclaim premiums, education loan EMIs etc if applicable. Check http://www.knowledge.fintotal.com/List-of-Chapter-VI-A-Tax-Deductions/2126
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kaustubh asked, i have been asked some detials by IT department with code CIB & AIR where can i found the deatils & transaction matching with this codes if i reply to this notice with option that file is under preparatio then can i get extension till 31 st march to prepare a file & reply it ?
Kripananda Chidambaram, Director- fintotal.com answers, Not able fully ascertain you need, pls check with a practicing CA
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Sen asked, Having two house on two parts of maharasha. by taking loan for both the houses. Presently staying in Govt. Qrts and not getting any HRA. How the Interst on Housing Loan benfit will be allowed to me ?
Kripananda Chidambaram, Director-fintotal.com answers, You can declare any one of the houses as 'self occupied' and claim tax deduction up to Rs 1.5 lakhs on interest part of EMIs. If the house is given on rent the entire interest can be claimed.
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atul asked, I have sold out my flat and paid the dues to bank for this property and balance amount paid for new property loan repayment. How can I declare this process as payments have been through my salary bank account.
Kripananda Chidambaram, Director- fintotal.com answers, Not able to ascertain what you wish to know. You may post your query with details in query
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df asked, how to know long term gains /short term gains in share purchases with the help of statements and their tax rules please
Kripananda Chidambaram, Director- fintotal.com answers, If you sell the shares within one year from the purchase date with gains then you have to pay short-term capital gains tax at the rate of 15.54%. But if you sell at profit after 1 year, then the long term gains are tax free
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sirajut asked, Sir,My office is not accepting my investment in Rajiv gandhi scheme as it is not clear, and they told you should be first time investor in equity, even if you have equity Mutual fund of Rs.5000/- than also you are not eligible, like this no one can invest in this scheme, pl suggest how to save now.
Kripananda Chidambaram, Director-fintotal.com answers, For RGESS you should be using demat acount for first time for equity shares or equity funds. If you did not buy the mutual fund through demat account yo should be eligible. Your income should be less than 10 lakhs. For more you can read http://www.tax.fintotal.com/Sections/80CCG-Tax-Rebate/4546/68
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Alhad asked, what is best tax saving instrument for Sr.Citizens.
Kripananda Chidambaram, Director-fintotal.com answers, You can choose between NSC, Tax Saver FDs and ELSS.

sovanmaji@rediffmail.com asked, hello sir good evening i have some question o you regarding ITR
Kripananda Chidambaram, Director- fintotal.com answers, You may post in Query
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PRASANT asked, IS INVESTMENT IN GOLD MUTUAL FUND IS GOOD
Kripananda Chidambaram, Director-fintotal.com answers, Yes it is a better option to accumulate gold than buying gold coins, jewelry. Cap your investment in gold at 10-15% of your overall investments. Read http://www.knowledge.fintotal.com/gold-other/Recommended-Methods-for-Investing-in-Gold/2358
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sharad asked, sharad asked, hello, i had taken tax benefit on my housing loan interest during the current whereas the posession of the same is yet to receive. now my headofice is asking for possession letter in the absence of which they will withdraw the tax benefit and i have to pay additinal tax of Rs.27000 approx. pls suggest some way to escape from this liability. plz revert. sir can copy of house registration be considered in lieu of possession letter? plz reply
Kripananda Chidambaram, Director- fintotal.com answers, No my dear..

vishal asked, Demat a/c is necessary to invest in gold mutual fund
Kripananda Chidambaram, Director-fintotal.com answers, No you don't need a demat account for mutual fund investment.
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ary asked, i want to know that bypass surgery for father is having any exemtion and if yes then what documents reqdd
Kripananda Chidambaram, Director-fintotal.com answers, Bypass surgery is not one of the diseases covered u/s 80DDB. Read http://www.productanalysis.fintotal.com/Apollo-Munich-Easy-Health/2097
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raje asked, What is the tax % if the income is 2.5 lac pa
Kripananda Chidambaram, Director- fintotal.com answers, 10%
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vass asked, i have invested 15K on HDFC SL Young Star Super II for my son ... is this a good choice ?
Kripananda Chidambaram, Director- fintotal.com answers, Not a good option as they are an expensive way to save for future. A simple SIP in MF will do the job for you.
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Param asked, Mr Chidambaram, I have got some shares transferred from my dad's demat account into my demat account. Most of the were held for more than a year in my father's demat account. How are short-term/ long term capital gain tax implications for both the demat accounts now. Can you help clarifying this?
Kripananda Chidambaram, Director- fintotal.com answers, Since it is from your father it is not taxable. We recommend you to document it through a gift deed
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sai asked, which is best medi claim policy for the family?
Kripananda Chidambaram, Director-fintotal.com answers, One of the best policies is Apollo Munich Easy Health Family Floater. Check review at http://www.productanalysis.fintotal.com/Apollo-Munich-Easy-Health/2097

arif asked, Can i get tax examption on houseing loan intrest paid and HRA both, i am living in rental house in different state
Kripananda Chidambaram, Director- fintotal.com answers, Yes
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Manish asked, Can I claim tax benefit for home loan for a house in another city, while claiming HRA for rented accomodation in city where I work?
Kripananda Chidambaram, Director- fintotal.com answers, Yes, in this situation you can claim.
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sgrsgr asked, If I sell my GOLDMAN etf , which is more than one year old, whether I have to pay any tax?
Kripananda Chidambaram, Director-fintotal.com answers, Yes, you need to pay Long Term Capital Gains tax of 10% or 20% with indexation benefits on your profits.
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opp asked, having 24K in PF saving is it better to invest 76K in UTIULIP for under 80C?
Kripananda Chidambaram, Director- fintotal.com answers, ULIPs are the expensive way of tax saving. Better invest in ELSS.
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Mayur asked, hi, i had done 1lac 80C investment, is there any other investments left (like bonds or other) to safe tax, i am already doing trading in equity so can't use RGESS..!
Kripananda Chidambaram, Director-fintotal.com answers, Mayur, if you have exhausted 80c deductions and are not eligible for RGESS there aren't more tax saving 'investments' but if you like you can make donations and claim deductions. Also make use of mediclaim premium deductions, education loan deductions, if any. Refer http://www.knowledge.fintotal.com/List-of-Chapter-VI-A-Tax-Deductions/2126
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vishal asked, Last year my fathers death by heart attack in the month of Nov.2011, i cant submit the Medical bill of rs. 150000 last year, shall i submit the bill in this year.
Kripananda Chidambaram, Director- fintotal.com answers, I am sorry to hear about this. You cant claim any benefits on the bills now.
Tushar asked, sir, my 2 childs total school fees 28,800.00/- (1200 per month). Should i get benefit under 80c for full amount of school fees?
Kripananda Chidambaram, Director- fintotal.com answers, Yes , surely you will get benefit up to 1 Lac under section 80C.
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munesha asked, Sir, I own a house in Delhi but i m not residing in this house can I give rent receipt while taking tax exemption on house loan?
Kripananda Chidambaram, Director- fintotal.com answers, HRA and home loans benefits can be claimed only if the properties are in two different cities
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sujit asked, But in term plans there are no returns how can you say that term plans are the future?
Kripananda Chidambaram, Director-fintotal.com answers, Insurance and investment should not be mixed. For investment choose mutual funds, FDs, PPF, etc. Term insurance gives best insurance cover. Traditional plans and ULIPs have very less cover and charges are very high. You can read http://www.knowledge.fintotal.com/insurance/Why-Traditional-Endowment-Whole-life-Insurance-Plans-Should-Be-Shunned/382
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yash asked, Under which section, can i claim the registration amount for the property in my name
Kripananda Chidambaram, Director- fintotal.com answers, You can claim it under section 80C.
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George asked, is there any infra structure bonds for this year
Kripananda Chidambaram, Director- fintotal.com answers, No it has been scrapped for this year
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vindi asked, i am in 30%tax slab. first home loan interest 2.16 lakhs, it is rented 6000K/month and, second home loan 1.2 Lakh interest where i am residing, what is the maximum tax benefit i get on the interest part of the both home loans
Kripananda Chidambaram, Director- fintotal.com answers, on your residing property Rs 1.2 lacs on your rented property Rs 2.16 lacs

kishor asked, hello sir i resigned in the month of Dec'2012 and wanted to something else. Till date have received my gratuity and super annuation amount from the company. my question is this exempted from tax or i have to pay tax on it. Also whether my Form 16 will have this figures. also suggest me where i should invest this money to save next years tax.
Kripananda Chidambaram, Director- fintotal.com answers, You may visit Retired or contact us at info@fintotal.com
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Arnab asked, Name of best 5 tax saving mutual funds? Are Gold ETF also eligible for 80c?
Kripananda Chidambaram, Director-fintotal.com answers, Check the link http://www.knowledge.fintotal.com/mutual-fund/Best-Mutual-Funds-for-2013/5723 for best mutual funds. Gold ETFs are not eligible for 80 C deduction.
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Arnab asked, suggest a good plan for wealth creation
Kripananda Chidambaram, Director- fintotal.com answers, The mid cap mutual funds can be best for general wealth creation. Some of the best funds in this category are IDFC premier equity fund, ICICI prudential discovery fund , UTI MNC fund etc.
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Sub asked, Name of best 5 tax saving mutual funds? Are Gold ETF also eligible for 80c?
Kripananda Chidambaram, Director-fintotal.com answers, Gold ETFs are not eligible for 80C. Refer to http://www.knowledge.fintotal.com/mutual-fund/Best-Mutual-Funds-for-2013/5723 for list of best ELSS funds.
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chandrakant asked, (Tuition fee receipt paid for your children if any- this qualifies for section 80C tax rebate.) Is it private tuition fees also calculated? or only school tuition fess has been calculated?
Kripananda Chidambaram, Director- fintotal.com answers, Only school tuition fees will qualify under 80C.

hello asked, pls expalin about HDFC-TOP-200
Kripananda Chidambaram, Director-fintotal.com answers, It is one of the best funds. But it is not among the ELSS funds. You can find review of it here http://www.productanalysis.fintotal.com/HDFC-Top-200-Fund/765
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sharad asked, hello, i had taken tax benefit on my housing loan interest during the current whereas the posession of the same is yet to receive. now my headofice is asking for possession letter in the absence of which they will withdraw the tax benefit and i have to pay additinal tax of Rs.27000 approx. pls suggest some way to escape from this liability. plz revert.
Kripananda Chidambaram, Director- fintotal.com answers, If you had claimed the benefit under sec 24, then there is no way out...
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vishal asked, There is a LIC policy on my mothers name, can i take the Tax benifit under 80C.
Kripananda Chidambaram, Director- fintotal.com answers, No, you will not get tax benefit under 80C. Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction.Life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C.
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sujit asked, Will you recommend taking term plans?
Kripananda Chidambaram, Director-fintotal.com answers, Term insurance? Absolutely.
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Poonam asked, My salary is 10Lac/annum, where can i save money
Kripananda Chidambaram, Director- fintotal.com answers, Kindly read http://www.newsanalysis.fintotal.com/Tax-Planning-for-Salaried-Employees-A-Last-Minute-Guide/5908
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naren asked, pls tell me about tax saving investment otions
Kripananda Chidambaram, Director-fintotal.com answers, Invest in ELSS funds. They give tax benefit up to Rs 1 lakh and also good returns in the long term. You can refer to http://www.knowledge.fintotal.com/Income-Tax-Deductions-Financial-Year-2012-13/709 for the list of tax deductions.
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rajeev asked, I have 2 housing loan on 2 different property will the interest rate on 2 property will be fully deducted
Kripananda Chidambaram, Director- fintotal.com answers, Yes full interest portion on the loan on the second property can be claimed
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Salaried asked, Mr. Chidambaram : I am staying in 200 Sq ft rental house and bought new house of 180 sq ft near the rented house with housing loan.. now my company is not allowing to claim HRA since having a house in the same city..what should i do? if i claim refund under my I tax return than do i have to take notional income for SOP..
Kripananda Chidambaram, Director- fintotal.com answers, You can claim HRA till the period you paid rent
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sgrsgr asked, My sons tution fees fees for Rs75000 says 'Tuition fee & other expenses'. Am I eligible for Rs75000 under 80c?
Kripananda Chidambaram, Director- fintotal.com answers, Yes, you are eligible to get deduction under 80C as its upper limit is up to 1 lac.
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amorey asked, i am a salaried person and have to give documents as a proof for tax savings . which documents should i submit?
Kripananda Chidambaram, Director-fintotal.com answers, You have to submit relevant receipts on the permitted investments, deposits and expenses you made. You can read http://www.newsanalysis.fintotal.com/Tax-Planning-for-Salaried-Employees-A-Last-Minute-Guide/5908 for more on that.
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Satish asked, I am investing in an ULIP since 7 years. If I sell that now, will the premium paid last year come under tax? what about the return value? Is it taxable?
Kripananda Chidambaram, Director- fintotal.com answers, No if you surrender after 5 years your earlier premium benefits will not be revoked.
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ramakant asked, what exactly is rajiv gandhi equity scheme could u kindly explain me. what is the approximate returns expected form this
Kripananda Chidambaram, Director-fintotal.com answers, Under RGESS scheme you can save up to Rs 25000 a year for investing in certain ETFs mutual funds and shares. Your income should be less than Rs 10 lakhs and should be using demat account for the first time for equities. http://www.tax.fintotal.com/Sections/80CCG-Tax-Rebate/4546/68
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Jithesh asked, SK: I would like to know if medical expenses can used for tax benefits. are bills required
Kripananda Chidambaram, Director- fintotal.com answers, Yes, medical expenses can be used for tax benefits under medical allowance component of your salary and you need to submits bills also.
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rishabh asked, sir, im having approx 5 lacs in my icici bank account which i made 1 year fd's.that is my saving and that amount is not in use since 2 years.tell me the best place to invest where there is less chances of loosing capital and moreover i can get maximum rate of intrest
Kripananda Chidambaram, Director-fintotal.com answers, Rishabh, keep aside some money for about 6 months' expenses and put the rest in an MIP. Read about it in detail here http://www.knowledge.fintotal.com/Monthly-Income-Plan-MIP/422
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Sachin asked, Give me ur mail id
Kripananda Chidambaram, Director- fintotal.com answers, info@fintotal.com
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Sen asked, Can any employee claim the benfit under Section 80D for a Group Insurance Mediclaim Policy which is offered by agents and does not provide any direct receipt to the employee ? Policy is being issued by the Insurance co.
Kripananda Chidambaram, Director- fintotal.com answers,
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Arnab asked, i have invested Rs. 2000 monthly in Reliance equity mutual fund and Rs. 500 in Reliance gold fund. are they tax saving fund. how much profit they can give.
Kripananda Chidambaram, Director- fintotal.com answers, The returns in any equity mutual fund is tax free. But in case of reliance gold mutual fund,if units are sold within one year than returns are taxed on the marginal rate i.e. as per the tax slab and if the units are sold after one year than long term capital gain applies which is taxed as 10.3% of gains if non-indexed, or 20.6% of gains if indexed, whichever is lower. No body can predict the returns that one can get by investing in mutual funds. For more information you can refer mutual fund page on fintotal.com.
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Pritam asked, This year there was not much new funds on Infrasatructure bond.i was unable to get this benefits this year
Kripananda Chidambaram, Director-fintotal.com answers, 80 CCF tax deduction on Infrastructure bonds was withdrawn this year. There were a couple of tax free bonds but not under that section. They only give tax rebate on interest earned.
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chiru asked, You mentioned in this conversation that housing loan interest will be elegible for tax deduction only for 5 years after possition . Is any such time limit is there even for housing load principal repayment for tax benefit under section 80c
Kripananda Chidambaram, Director- fintotal.com answers, You can claim tax rebate for 5 years in after completion of construction. However you can get the benefit of 80C with an upper limit of Rs 1 lac
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mbmpi asked, Sir will you please reply. I am abroad, is there any way to do tax saving FD online?? what is the most safe tax saving thing i can do online??
Kripananda Chidambaram, Director-fintotal.com answers, Many Pvt sector banks offer online Tax Saver FD. But we would recommend ELSS. You'd have to check with an adviser how to do this.
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va asked, Can you refer to a section where this is listed. "Yes, you can get full benefit on your second home on the interest portion".. MY Finance is not accepting this fact saying it is not listed in IT act
Kripananda Chidambaram, Director- fintotal.com answers, section 24
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docruchir asked, What are the mutual funds and which ETFs have been included under the Rajiv Gandhi Equity Scheme. And what would you suggest is the best option for investment under this scheme??
Kripananda Chidambaram, Director-fintotal.com answers, A few mutual funds, ETFs and shares have been declared as RGESS-eligible. Find the list at http://www.knowledge.fintotal.com/RGESS-Eligible-Securities/5729 If you are new to shares skip RGESS this time. The mutual funds are also new; we do not know how well they'd do.
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kashi asked, I have savings in my wife's name plus she earns a rent from a comm property. Should she file the returns?
Kripananda Chidambaram, Director- fintotal.com answers, Yes if her annual income exceeds Rs 2 lacs.
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vinay asked, I am 62 and have annual income of 11 lakhs. I have invested Rs.1 lakhs under 80C. However,to avail tax rebate on investment on Bond, the period of 10 yrs and 15 yrs is quite long considering my age. Please advice where I should invest to save additional income tax
Kripananda Chidambaram, Director- fintotal.com answers, There is no tax rebate this year on infrastructure bonds. What you see in market is bonds where the returns are tax free. You have very limited tax savings options outside 80C. Kindly read the article http://www.newsanalysis.fintotal.com/Tax-Planning-for-Salaried-Employees-A-Last-Minute-Guide/5908
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vinay asked, I am 62 and have annual income of 11 lakhs. I have invested Rs.1 lakhs under 80C. However,to avail tax rebate on investment on Bond, the period of 10 yrs and 15 yrs is quite long considering my age. Please advice where I should invest to save additional income tax
Kripananda Chidambaram, Director-fintotal.com answers, Vinay, the bonds you are talking about don't give tax deduction on the amount invested, rather only the interest is tax-free if they are held to maturity. So if you have exhausted your Rs 1 lakh quota under 80 C, make sure your other deductions like mediclaim premiums don't go. Refer to http://www.knowledge.fintotal.com/List-of-Chapter-VI-A-Tax-Deductions/2126
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rav asked, What is the age limit for Sr citizen women? Is it same as 65?
Kripananda Chidambaram, Director- fintotal.com answers, Age limit for senior citizen is 60 to 80 years.
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va asked, Hello, Is it true that we can claim the full interest paid for a second housing loan with out any cap on it (>150,000)?.
Kripananda Chidambaram, Director- fintotal.com answers, Yes, you can get full benefit on your second home on the interest portion
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rajeev asked, sir i pay rs 12,000 as my mediclaim & rs 15000 for my mother. will this both money be deducted as insurance
Kripananda Chidambaram, Director- fintotal.com answers, No, this wont be deducted as insurance but you can get deduction under 80D. You can claim up to Rs. 15,000 on mediclaim premiums paid for yourself, spouse and dependent children. In case youre also paying for parents an additional Rs. 15,000 can be deducted
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nb asked, are infrastr bonds of rs 20000 avlb?
Kripananda Chidambaram, Director- fintotal.com answers, Not this year
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Ankur asked, I have taken a home loan 2 years back for a apartment under construction, I have taken the possession of the apartment on 1st Feb 2013. Till Jan 2013 I was living in a rented house. Can I claim both HRA and home loan tax benefits this year?
Kripananda Chidambaram, Director- fintotal.com answers, You can claim HRA for the period you did not have possession of your own property
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jh asked, U/s 80D traeatment up to 5000/- in cash private doctor bill ammount is eligible for deduction
Kripananda Chidambaram, Director- fintotal.com answers, Under sec 80D only mediclaim premium is eligible for tax rebate. Check 80DDB http://www.tax.fintotal.com/Sections/80DDB-Tax-Rebate/5914/68
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vishal asked, what are the schemes to save the tax under 80 C.
Kripananda Chidambaram, Director- fintotal.com answers, Under section 80C, you can claim deduction up to Rs 1 lac. The various investment options in this section are – Life Insurance Premium, Tution Fee for Children ,PPF- Public Provident Fund, EPF- Employees Provident Fund NSC- National Saving Certificate, ELSS- Equity Linked Mutual Fund ,Housing Loan Principal Repayment ,Registration and Stamp fee on House Property ,Tax Savings Fixed Deposit (PO/Bank), Contribution in Pension Fund ,Contribution in New Pension Scheme.
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leslie asked, is deduction under section 80ccf available
Kripananda Chidambaram, Director-fintotal.com answers, 80 CCF deduction has been scrapped for 2012-13.
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errrrrrrr asked, I have an old demat a/c which I never used. Can this be used for RGESS?
Kripananda Chidambaram, Director- fintotal.com answers, Yes
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k asked, Sir, to avail benefit of Section 80-C, i want to go for Retirement plan..which plan you suggest?
Kripananda Chidambaram, Director- fintotal.com answers, We would not recommend you to go for insurance cum investment plans for retirement as they are expensive way to save tax. You may go for NPS or stick to ELSS for saving taxes under 80C
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sarri asked, how to use RGESS
Kripananda Chidambaram, Director-fintotal.com answers, You might rather give RGESS a miss this time because you don't have many good options to invest in. Wait until next year. Read about it here http://www.tax.fintotal.com/Sections/80CCG-Tax-Rebate/4546/68
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raje asked, Can u inform the Tax slab
Kripananda Chidambaram, Director- fintotal.com answers, You can refer following link: http://www.knowledge.fintotal.com/Income-Tax-Slab-for-FY-2012-13/5725
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sai asked, Goldman Saches Gold Exchange traded scheme: is it good??
Kripananda Chidambaram, Director- fintotal.com answers, Yes
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suresh asked, I am Senior Citizen.My Income is around 12Lakhs. I have saved upto Rs.1.00L under 80C. Any other tax saving scheme for me
Kripananda Chidambaram, Director-fintotal.com answers, You might not have more tax saving 'investment' options but you can make sure you claim deductions for mediclaim premiums or you can donate to charity. Find the list of such deductions at http://www.knowledge.fintotal.com/List-of-Chapter-VI-A-Tax-Deductions/2126
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deepa_pillai7 asked, Hi, can u advise if i am getting overseas commission in US$ to my India a/c, should I pay the Tax? Is it tax exempted?
Kripananda Chidambaram, Director- fintotal.com answers, You will be taxed in case your status is resident Indian
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rajkumar dodani asked, do we have infra bonds option this yr for the additional rebate of 20k ?
Kripananda Chidambaram, Director- fintotal.com answers, No, from 2012-13 80CCF has been scrapped.
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BKK asked, HOW TO CALCULATE RENT INCOME OF SECOND HOME,THIS IS NOT RENTED OUT?
Kripananda Chidambaram, Director- fintotal.com answers, You have to take the market value as the notional rental income. You can deduct property tax, deduct 30% of the rental value and deduct the interest of home loan if any. This will become you taxable income for the second property.
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jatin asked, I pay Rs 25,000 for a combined health insurance of my parents. My father's age is 66 years and mother's 60. Will this money be deducted as insurance for senior citizens (above 65 years) or will it be considered for normal deduction of Rs 15,000?
Kripananda Chidambaram, Director- fintotal.com answers, No, it would be considered under deduction for senior citizens. So you can claim up to Rs 20000.
________________________________________
Archana asked, Hi My name is Archana,I have built a house for which i am claiming deduction and my mother stays there. I stay with my husband in a rented place,can i claim tax rebate for both home loan and rent?
Kripananda Chidambaram, Director-fintotal.com answers, If the house you own is in a different city and you are staying in on rent in a different city for employment related reason you can claim both HRA and home loan tax rebate.
________________________________________
nrk asked, DO you think will principle invested in ELSS in Icici and other will return ? Are support of them? May be LIC return may not be attractive but sure you get the money
Kripananda Chidambaram, Director- fintotal.com answers, ELSS has risks but if you stay invested in the long run you may not lose your capital. LIC though has assurance, the returns will not help you beat inflation. Insurance cum investment plans are expensive way to save taxes.
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ganpat asked, i want to invest in gold as SIP, which is the best suitable mode & plz suggest how I can do that.suggest also which one is best.
Kripananda Chidambaram, Director- fintotal.com answers, You can invest in gold mutual fund through monthly SIP. SBI gold fund and reliance gold savings are the best funds in this categories. Check the review: http://www.productanalysis.fintotal.com/SBI-Gold-Fund/2700
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DAS asked, What could be the Max value that a house owner can issue Rental Receipt, without getting into IT bracket? Please help me.
Kripananda Chidambaram, Director- fintotal.com answers, As soon as your annual income exceeds Rs 2 lacs you come under tax bracket
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Mc asked, I wanted to Knw about NSC
Kripananda Chidambaram, Director-fintotal.com answers, You can reduce your taxable income by Up to Rs 1 lakh by investing in NSC. You can apply for it through a nationalised bank. Returns is usually close to FD rate about 8.6-8.9% this time. Check http://www.banks-deposits.fintotal.com/Must-Knows/National-Savings-Certificate-NSC/6022/2
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gaurav asked, Do I need to have demat account to invest in RGESS. My gross annual salary is less than 10 lacs. Can I invest in RGESS?
Kripananda Chidambaram, Director- fintotal.com answers, Yes you need to have a demat account and also your income should be less than 10 lacs. You can also refer following link: http://www.newsanalysis.fintotal.com/RGESS-on-Its-Mark-to-Get-Set-and-Go/3829
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Narayanarao asked, Does a Senior citizen having an monthly income of Rs. 30000-40000 from hoouse ren, has to file returns and what is the tax for the same
Kripananda Chidambaram, Director- fintotal.com answers, The tax starts for senior citizen if his annual income exceeds Rs 2,50,000 per annum. You will come under 10% slab and it is also good to file your tax returns.
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BGPatil asked, I have 15000 to invest is ICICI is ok
Kripananda Chidambaram, Director-fintotal.com answers, ICICI Pru Tax Plan for ELSS? It's a good fund.
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bpsaxena asked, After how much time one can withdraw from PPF a/c.
Kripananda Chidambaram, Director- fintotal.com answers, You can withdraw after 5 years. You can refer the link below: http://www.banks-deposits.fintotal.com/Must-Knows/Public-Provident-Fund-PPF/6029/2
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Arnab asked, Hi Sir, I have save Rs.30000 in 80C bracket to save tax. which is the best option, if i dont want to go for ELSS. NSC or Tax saving FD which one is best.
Kripananda Chidambaram, Director-fintotal.com answers, Both NSC and Tax Saver FD are similar in terms of tax saving since interest of both are taxable. So you can go for Tax Saver FD since that may be more convenient.
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how i save tax in hra asked, Sir i surrender my ulip policy after 3 years i the amount i get is taxable or not
Kripananda Chidambaram, Director- fintotal.com answers, Firstly the benefits you received under 80C in last 3 years would get reversed and also the amount you have got after surrendering is taxable.
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Raghu asked, My wife has been gifted a building by her father which earns rent.It is a commercial property. Should she file the returns even if her rental income is less than 2 lacs?
Kripananda Chidambaram, Director- fintotal.com answers, Firstly, gift from blood relatives is tax free. Now since she is the owner of the property she is liable to pay tax. But since her taxable income is less than Rs 2 lacs she need not have to file returns. Though we strongly recommend to file returns as a good habit to inculcate.
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rajeshwar asked, What is Rajiv Gandhi equity scheme introduced this year? My gross salary is above 10 lacs. Can i invest 50k in this ? if yes, Could you please suggest me some options.
Kripananda Chidambaram, Director-fintotal.com answers, RGESS gives 50% deduction for maximum investment of Rs 50,000 in eligible securities which include certain mutual funds, ETFs and shares. To be eligible your gross income should be less than Rs 10 lakhs and should be a first time user of demat account for equities. So you do not qualify for RGESS.
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Lokesh asked, i don't want to pay any tax. Please suggest.
Kripananda Chidambaram, Director- fintotal.com answers, You may not have to pay tax provided you plan well and you taxable income is below Rs 2 lacs. You may read this article http://www.newsanalysis.fintotal.com/Tax-Planning-for-Salaried-Employees-A-Last-Minute-Guide/5908
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hedf asked, Sir, Till how many years after taking the possesion of Flat, I can claim the Tax benefit on the interest paid to Housing loan ??
Kripananda Chidambaram, Director- fintotal.com answers, You can claim the tax benefits on the interest paid to housing loan for five years.
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vj asked, I would like to know high risk investment options. I am willing to take risks.
Kripananda Chidambaram, Director-fintotal.com answers, Go for ELSS funds; they invest in equities. Some of the best ones are ICICI Pru Tax Plan, Franklin India Tax Shield, etc
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ratheesh asked, Poor common man in this country will think that all central govt schemes are charity given by Sonia Gandhi's family. People's fund should not be given some family tag. Shame on UPA
Kripananda Chidambaram, Director- fintotal.com answers, Partially agree!
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lgautham@rediffmail.com asked, my early income is 15 lac. what is maximum or highest amount to be invested in different catagory to lower my taxation
Kripananda Chidambaram, Director- fintotal.com answers, You may find the below link useful http://www.newsanalysis.fintotal.com/Tax-Planning-for-Salaried-Employees-A-Last-Minute-Guide/5908
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munesha asked, Rajiv gandhi equity linked scheme has not been declared to be operatonal yet? is it so?
Kripananda Chidambaram, Director-fintotal.com answers, RGESS has become operational this year. A couple of ETFs have been named as RGESS eligible, besides NSE/BSE 100 stocks are also eligible. But it is risky for new investors to plunge into shares directly so you might skip RGESS this time and wait until you have more options in terms of mutual funds to choose from.
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sawant asked, Hi My wife has recently availed of a housing loan Can i claim exception for that in my IT returns ?
Kripananda Chidambaram, Director- fintotal.com answers, No. You need to be both the borrower and owner.
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shiv asked, sir investment in which schemes in the name of children i can make to avail tax benefit
Kripananda Chidambaram, Director- fintotal.com answers, I would suggest you to invest in ELSS in your name. Child care plan of insurance policies are an expensive way to save tax.
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Lokesh asked, I have invested in Market Unit Linked policy in LIC for 15 years tenure.Please suggest whether i should exit id it is not good policy or should pay for the full 15 years tenure. My yearly amount in 10k
Kripananda Chidambaram, Director- fintotal.com answers, ULIPS are expensive way to save for taxes. We would suggest you to exit after 5 years and then move into an equity diversified mutual fund.
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sudip asked, Is the interest income from my savings account is also taxable?.
Kripananda Chidambaram, Director- fintotal.com answers, No, it is not taxable up to Rs 10,000.
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RAVIPRAKASH asked, Infra bonds are available for tax benifit for this year uder 80ccf?
Kripananda Chidambaram, Director-fintotal.com answers, No Infra bonds tax exemption u/s 80 CCF has been withdrawn.
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berry asked, I have 15000 Rs to invest in tax saving scheme where I should invest these?
Kripananda Chidambaram, Director- fintotal.com answers, We will recommend you to go for Equity linked savings scheme (ELSS). ICICI Prudential tax plan or Franklin India Tax shield or Canara Robeco Equity tax saver fund. Go for any one of the above.
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ashish asked, Can we avail of the benefit of 20,000 for Infrastructure bonds this year.
Kripananda Chidambaram, Director- fintotal.com answers, No,80CCF has been scrapped this year.
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SANTOSH asked, Hi Sir, I would like to know if I can avail tax benefit if I am planning only interest payment EMI for under construction house
Kripananda Chidambaram, Director- fintotal.com answers, Nope, you cannot claim tax benefits on interest payment for under construction house, however you may get the benefit of principle under sec 80C
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sanjay asked, sir, please give information about rajiv gandhi equity scheme.
Kripananda Chidambaram, Director- fintotal.com answers, Rajeev Gandhi Equity Scheme (Section 80CCG)this is first of its kind scheme in India which allows the retail investor to invest upto Rs.50,000 directly into equity shares and avail tax benefit on 50% percent of investment made directly into equity shares. Some of the conditions put under the scheme to avail tax benefits are 1) The investor should have income of less than Rs. 10 lakhs in a year, 2) The benefit under the scheme will be given to the first time investors into equity market only, 3) investments will be subject to lock-in period of three years and 4) If the assessee has claimed and has been allowed a deduction under this section for any assessment year in respect of any amount, he shall not be allowed any deduction under this section for any subsequent assessment year.
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ganesh asked, i am working for a private ltd company earning close to 8 Lac p.a. From april i would like to pose myself as a consultant and claim various expenses like petrol etc and lessen my liability. In case employer are not agreeing how shall i restructure my salary to reduce tax burden. am 32 years old, no physical disability among family members, Insha Allah,no house on my own name, any other detail required

Kripananda Chidambaram, Director- fintotal.com answers, If you position yourself as consultant, then your tax status will be as a professional or business. In that case you have the opportunity to deduct expenses. But if you continue as an employee the tax saving options are limited to HRA, LTA, Conveyance allowance, medical allowance, sec 80C, 80D, 80G etc.
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Ratnesh asked, My annual income is less than 2 lakhs but bank is cutting TDS on my interest. What should I do?
Kripananda Chidambaram, Director- fintotal.com answers, You have to just submit form 15G that allows you to declare to the Bank that you fall below the tax bracket. Whatever has been already deducted can be claimed back by filing Income tax returns.
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berry asked, which is the best option for investing in tax saving schemes out of LIC, PPF and mutual funds
Kripananda Chidambaram, Director- fintotal.com answers, We would suggest you to invest in ELSS fund over LIC and PPF as ELSS has the power to beat inflation in the long run. LIC is an expensive way to save your taxes. In case of PPF, though it gives you safety of capital it cannot beat inflation in the long run. We would recommend you to invest in anyone from ICICI Prudential Tax Plan or Franklin India Tax Shield or Canara Robeco Equity Tax Saver Fund.
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googlytaxer asked, what is the risks evolved in rajiv gandhi equity scheme
Kripananda Chidambaram, Director- fintotal.com answers, Broadly they are equity investments, hence all the risk of losing your capital is there. But in case you hold equities for more than 5 years the chances of losing you capital is low. And it also has the ability beat inflation in the long run.
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sourabh asked, i would like to invest 35000 thousand under 1 lac tax rebate in order to save tax. kindly guide
Kripananda Chidambaram, Director- fintotal.com answers, We will recommend you to go for Equity linked savings scheme (ELSS). ICICI Prudential tax plan or Franklin India Tax shield or Canara Robeco Equity tax saver fund. Go for any one of the above.
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11 Awesome Tips to Save Money You Never Knew

2013-02-05T22:39:00.000-08:00

Basith Abdul

Saving money is the foundation of financial success. Like the old saying Money saved is Money earned. While many people spend most of their time and energy on earning more, it is important to note that without learning the art of spending money well along with saving and investing, they may not be able to create a promising future for themselves and their families.

While financial planning allows individuals to meet life goals by prudent management of money and finances,

managing money by saving should be the first step towards the bigger objective

Here is the list of tips to save money. These can be helpful for single, married, employees ,students, house wives ,etc and whoever feel they cant control their expenses.

Please Share this in Facebook and Twitter if you find value!

For more articles on managing your money, Please do visit fintotal- finance portal for non finance people. Any queries and doubts can be directed to info@fintotal.com

Tweet This Interesting Tips from this Infographic
Throw away your Credit Card. The interest charged is more than 30 % Tweet This :)
Buy Generic Medicines. It costs 10x less than branded ones Tweet This :)
Eat lite before going to Fine Dine. Good for your body and wallet Tweet This :)
Have a fixed automatic amount transferred to a mutual fund at the start of every month Tweet This :)
Skip CCD. Hang out in a chaiwala or a dhabha Tweet This :)
Shop a lot! But only during Sale. And look out for discount coupons and codes Tweet This :)
Buy Non-Perishable Items in bulk with friends Tweet This :)

4 Home Loan Myths

2013-02-05T04:28:00.000-08:00

Myth 1: I can pay for the house myself – so I do not need to apply for a loan

Fact: Even if you are not plan to utilise a housing loan, applying for one from a Nationalised Bank has its merits. For a small processing fee, before they grant approval, they typically carry out a due diligence of the builder and the property to ensure titles and deeds are clear. On your own you would find it difficult to carry out this process comprehensively. Thereafter, you can always back out and not take disbursement, if you do not want the loan.

Myth 2: Even if I can prepay, it is useful continuing the loan for tax benefits

Fact: In most cases, this is not true. Despite the tax benefit, you will typically earn less on your money compared to the net interest outflow on the loan. If your finances are comfortable (i.e. you have some cash spare for contingencies), you would rather prepay and close the loan as soon as possible. This gives you much more flexibility and peace of mind in subsequent years.

Myth 3: My property is insured. I do not need any other insurance for the loan

Fact: There are two very different types of insurance you need. One is a property (fire) insurance that covers your home and its valuables from damage or theft. But even more important is what is called the ‘Credit Guard’ that is a life insurance policy for the person repaying the loan. In the event of an eventuality to this person, the insurance company pays all remaining EMIs to the Bank, and removes all liability from the person’s family. This is an important additional life insurance you need to take while going for a home loan.

Myth 4: Interest rates in the first couple of years are critical to compare – thereafter it is anyway floating

Fact: It is true that most home loan rates are floating. However, be extra careful when you opt for ‘teaser rate’ home loans, where interest rates are artificially low in the first couple of years. This often lulls you into complacency and gives you a rude shock when payments jump after two or three years. While teaser rates are doubtless useful, you should first make sure you have repayment capacity for the loan you are taking, even at market rates, not just teaser rates

Source: Fintotal Home loan myths

5 Mutual Fund Myths

2013-01-27T23:37:00.000-08:00

While mutual funds are considered a safe haven for not-so-savvy investors, they have their share of their myths. Here we look into key mutual fund myths that you should be aware of and always keep in mind while considering investing in mutual funds.

Mutual Fund Myths

Myth 1: A New Fund Offer is an interesting product to be tried out, if I have some money to spare

Fact: An NFO is a fund which is newly launched ie, there is no track record. Instead, opt for an index fund, or a good fund with a minimum 3-year track record. The only person the NFO is good for is the broker, since commissions on NFOs tend to be higher.

Myth 2: A lower NAV indicates a cheaper fund.

Fact: NAV per se does NOT tell you anything about a fund’s performance. Instead, it is the change in NAV over a time period (i.e. the returns) that you should be measuring. While doing this, make sure you annualise the returns, so that they are comparable. Selling a Rs10 NAV NFO as a ‘cheap’ one was a common fraud perpetrated by agents till the regulator cracked down on them.

Myth 3: I should not put all my money into one fund. I should hold a diverse basket

Fact: This is true of stocks, not of funds. A mutual fund already does the diversification for you, by holding several stocks (as many as 25 usually). You can little additional benefit by diversifying into several funds. In fact, you risk making your portfolio fragmented and difficult to manage. In case of index funds, just one is sufficient. In case of other funds, about three should do the job.

Myth 4: I should analyse and review my fund portfolio every year

Fact: This is not necessary, and is counterproductive in general.. Do not churn a portfolio unless you are an expert investor (in most cases, not even then!) Brokers and Wealth Managers often recommend a portfolio review – but this is only so that they can churn and make money from the transactions. This has nothing to do with improving the returns prospects of your portfolio. Do not exit a fund till you need money for your important goals. Remember, more action is not always better than less action. In many cases, it can be worse!

Myth 5: By opting for Dividend option, I can manage my risk

Fact: Dividend or Growth options have nothing to do with your risk. If you are a pensioner living off your fund’s income, go for the Dividend option. Else, always go for the Growth option and let the money grow in the fund. If you receive it as Dividend, you are likely to spend it in consumption items.

A simplified guide on tax planning for salaried individuals

2013-01-15T03:03:00.001-08:00

Salaried employees: Final few weeks of tax planning, here is a complete guide

Most of the salaried employees might have received a reminder from the HR for submission of proofs of tax saving investments.

Are you worried that you have not utilized all the tax saving provisions? Are you staring at a huge tax deduction from March salary?

If you have already made the provisions and investments, then it’s no big deal for you. But in case you are one of the late movers, time has come to make fast moves.

Broadly, there are three ways to ensure that you pay optimal tax; Claiming tax free income, incidental actions that bring tax benefits and finally Investing/saving for tax benefits

Let us explore them in detail;

Claiming tax free income:

All you need to do here is submit documents to the HR and relax. Your tax outflow will automatically get managed. These are applicable for salary components that are tax free in nature. Here is the list of items:

· In case you live in a rented apartment and want to make your HRA tax free: Submit 12 month’s rental receipt from owner

· For making medical allowance tax free you need to submit medical bills for the year

· To make leave travel allowance (LTA) tax free you need to submit travel proofs

· For conveyance allowance to be made tax free you need to do nothing to prove. Attending work is good enough we guess!

Incidental actions that bring tax benefits

Here you get benefits for certain positive actions you take in your financial life. Here again all you need to do is submit proofs to claim tax benefits for those actions.

· Interest payment on your home loan- this qualifies under section 24

· Principal re-payment on your home loan- this qualifies under section 80C tax rebate

· Insurance premium receipts paid for the year- this qualifies for section 80C tax rebate

· Tuition fee receipt paid for your children if any- this qualifies for section 80C tax rebate

· Your side contribution to employee provident fund (no proof to be submitted as the HR already has the records) – this qualifies for section 80C tax rebate

· Mediclaim premium receipt- this qualifies for section 80D tax rebate

· Parents’ mediclaim premium receipt- this qualifies for section 80D tax rebate

· Education loan statement (mentioning the interest component)- this qualifies for section 80E tax rebate

You must be wondering why Insurance is figuring in this incidental category? Primarily, insurance is supposed to be seen in that manner. We discourage buying insurance policies as a tax saving tool. Same with mediclaim.

Investing/saving for tax benefits

Here is where you need to plan and act for managing your tax outgo. Broadly here you deal with the provisions of Sec 80C/Sec 80 CCC, 80G and 80 CCG. You are primarily expected to invest in any of the products listed in these sections and in return you get the benefit of paying lesser tax. But there is an upper limit to this. For both section 80C and section 80CCC the upper limit collectively is Rs 1,00,000.

Section 80C/ 80CCC:

In case the total amount claimed under 80C from the items that are listed in the above incidental category is totaling to Rs 1,00,000 then just chill. You have nothing much to do under these sections. But if total is less than Rs 1,00,000 then you can make some investments to claim tax benefits.

The products that qualify for the same are as follows:

· Public provident fund

· Bank fixed deposits (the 5 yr thing)

· Mutual fund-ELSS

· ULIPs

· National Savings Certificate (NSC)

· Pension Plan

Naturally your next question will be which product to choose. Here is our recommendation:

On closely looking at the products you will notice that all of them are long-term in nature. As it is a long-term investment, we need to take into consideration the negative impact of inflation while deciding on the product. Inflation robs the value of money as time passes. What a Rs 500 note can buy today cannot buy after say 5 years. Probably you need to have a Rs 1000 note! Hence whenever you make investments that are long-term in nature, the returns you earn necessarily should beat inflation.

Only growth assets have the power to beat inflation in the long run. Equities, equity mutual funds, gold and real estate have the power to beat inflation in the long run. Though they are riskier by nature, in the long run it delivers the best value. Income assets like fixed deposits, bonds, traditional investment-cum insurance policies, etc gives returns less than inflation.

Arranging the section 80C products as per the asset class:

Income assets

· Public provident fund

· Bank fixed deposits (the 5 yr thing)

· National Savings Certificate (NSC)

Growth assets

· ULIPs

· Pension Plan

· Mutual fund-ELSS

It is now quite obvious that young and middle aged people should look at growth assets only. ELSS wins hands down over ULIPs since it has far lower costs and charges loaded onto it. This makes it one of the best tax saving instruments available.

What is ELSS?

An equity linked savings scheme (ELSS) is very similar to a diversified fund - it invests in the broad Indian equity market. It has no stated preference for sectors or themes – it chooses stocks based on the fund manager’s research and hypotheses. An ELSS has a three-year lock-in period.

Here’s how to choose (the rule of three):

Avoid funds that have less than three years of track record.
Avoid funds that have an asset base of less than Rs.300 crores. You can get this figure in the fund fact-sheet (available for download at the fund’s site)
Rank all ELSS in decreasing order of three-year returns. Choose one of the top three. Be aware, past performance may not be repeated in future.

Section 80G

If you pay a donation to any recognized charity or relief fund, a part of the donation can be claimed as a tax rebate. You need to submit the certificate of donation to HR.

A few organizations like the Prime Minister’s Disaster Fund enjoy 100% deduction – which means the entire donation paid is deductible from your salary. However, most other donations including several religious organizations enjoy only a 50% deduction. If you pay Rs. 1,000 to such an organization, you can claim Rs. 500 as benefit.

Section 80CCG

This is the newly announced rebate from the government called Rajiv Gandhi Equity Savings Scheme (RGESS). Features are

· One can invest a maximum of Rs 50,000

· Tax rebate of 50%

· Only for individuals whose annual income is less than 10 lacs

· Investing in stocks for the first time

· Investing in BSE 100, CNX 100, PSUs, certain mutual funds and ETFs (list)

· Lock in of 3 year but can trade after 1 year

There is not much clarity in term of execution and procedure. May be you can give it a miss this year or wait for few more weeks to get complete clarity.

Recap- here is the check list of documents you need to submit to your HR

· In case you live in a rented apartment: 12 months rental receipt from owner

· In case you have home loan: Statement of housing loan with details of principal and Interest components

· Medical bills for the year if any

· Tuition fee receipt paid for your children if any

· Flight & train tickets for LTA claims

· Insurance premium receipts paid for the year

· NSC purchased in the year

· Mutual fund (ELSS) statement

· Mediclaim premium receipt

· Parents’ mediclaim premium receipt

· Education loan statement (mentioning the interest component)

· Bank Fixed deposit receipts (the 5 year lock-in thing)

Be aware with the current crop of tax free bonds: Firstly it has nothing to do with tax rebate of Sec 80 CCF. Section 80 CCF (Rs 20,000) has been scrapped this year and you will not get any tax rebate on infrastructure bonds like the one you got last year. Hence do not fall for this trap.

Source: Fintotal News Analysis

What about Personal Finance? - List of Educational Articles on Personal Finance

2012-12-28T11:00:00.000-08:00

Basith Abdul

This has been a very busy month for us here in Fintotal. And a very positive one. We got 9 of our articles published in different portals like moneycontrol, Business standard, trak.in ,etc. The articles are written by our Director, Kripananda Chidambaram and written keeping in mind the simplicity required to understand personal finance that which is imperative.

Understanding Personal finance that should be very integral to one's life as it can have a phenomenal positive effect in one's life. Many of you have at least a vague appreciation of what it takes to be financially successful - save adequately, take insurance, make investments, plan for goals, etc. Yet, a combination of inertia, lack of time and lack of clarity on where to start often makes the whole process a non starter.So we, in Fintotal, aims to reduce financial illiteracy by educating on Personal finance in a very simple and effective way

Below I have shared the links of articles about personal finance published in various portals.

Money Control - Dos and Donts of Mutual Funds

Money Control - A complete guide for NRIs- investing in Mutual Fund

Business Standard - Understanding Asset Allocation and Diversification

Getting Money Wise - 5 Mutual Funds Myths You Should Be Aware Of!!!

		Financial Freedom Inspiration - A Beginners' Guide to Insurance
		Squamble - Beware of Bank Relationship Managers

		Business Standard - The Right Investment mix
		Business Standard - Ideal numbers of items to have in your portfolio
		My Iris - Being a tax efficient entrepreneur Squamble - I want Rs. 50 lacs at the end of 10 years Trak.in - Lost money in shares! At least gain some at taxes
		Good Returns - Earning more income does'nt necessarily make you wealthy
		Also We have a new viewpoint in our portal written by our Director - India Infrastructure Finance Company Ltd (IIFCL) Tax free bonds- December 2012. What is it all about? I wish many of you have taken the first step to understand personal finance by going through the above articles.For more materials you can visit Fintotal Resources

		http://mye/storyShow.php?fileR=2012121718472804sddsf&secID=nchometopst&dir=2012/12/17&secTitle=Ts

Fake Notes: Enemy of the State

2012-12-05T00:00:00.000-08:00

Basith Abdul

"Police involved in fake currency racket: Arlekar" (TOI)
"Fake currency gang resurfaces, three arrested" "Fake currency gang resurfaces, three arrested"
"Fake currency gang resurfaces, three arrested" (TOI)
"India seeks US help to fight fake money - India" (New Indian Express)
"Pakistan major source of fake currency in India: Govt" (TOI)

"The J&K Police arrested two personnel of Territorial Army from Poonch area for allegedly circulating fake currency notes." (India Today)

"RBI pulls banks into fake currency war" (India Today)

The news regarding Fake and counterfeit money has become very common in recent times. Although fake currency is being printed perfectly, It still can be detected with some effort.

"Investigations into the Mumbai attacks have revealed that a large part of the money to fund the terror operation were obtained through fake currency rackets and hawala channels.

Intelligence Bureau sleuths say the menace of counterfeit currency is on the rise and there is a specific information that this money is being used extensively for terror operations." (Source: Rediff)

Counterfeit Notes have a very bad effect on the economy. Not many know that circulation of fake money notes increases inflation. Take this scenario for example. Raju has lot of money.counterfeit/fake money. Also is Ramu, Venu, Sabu and everyone in his village. Raju wants to buy apples, so do others as they all got lot of money. Seeing this, The smart trader increases his rate knowing that they would pay for it. And they pay. Who loses over here is the normal common man like me and you. The trader will charge the same amount to us. Also as the demand increases, by simple economics, there is no enough supply to meet, therefore the price increases again. Because Raju, Ramu, Venu, Sabu and the likes have fake notes and thus lot of money to buy, the minimum ceiling selling price of these goods also increases.

Like the news snippet from Rediff above, The fake money is being used to finance terrorist and other illegal activities. Also, counterfeit money can't be deposited into your bank. So businesses lose money when they get counterfeit money. When businesses lose money, banks lose money. And that's bad for the economy.

Ruby Jacob of our Team has written an article on what to do if you spot a counterfeit note and how can you identify fake bank notes. Have a good read!

Do You Happen to be Carrying Fake Notes?

Dec 20th Update for Fake Notes

We have created a video to identify Fake Notes. Check this out

Gold Investment Guide for Beginners

2012-12-01T00:01:00.000-08:00

We have a made this simple video explaining on investing in Gold alternatives like Gold ETFs ,E-Gold and Gold Mutual Funds. Gold always have been a preferred mode of investment for Indians. But there is a lack of awareness on ETFS, E Gold and God Mutual Funds

This video is completely created in PowerPoint and the content for this video is taken from Fintotal. We have tried to make it very simple and to the point. The idea of alternatives for Gold is very new to people here in India. Hope you like this! :)

A Guide to Placement Nirvana – Tips to enhance your final placement

2012-11-18T22:24:00.000-08:00

Basith Abdul

So here’s the time you have been waiting. The irony is you wait for the placement period for year and half and then when it arrives, you think it’s too soon. Lot of hard work has ensured that you get into top institutes but that is not an end in itself. Students fail to realize that there is still a fascinating journey left. You did PG for a reason and a good placement is the fruit of your hard work and aspirations.

Here are few tips and tricks which will surely help you beat the heat in this placement period

• Grab a cup of tea/coffee and sit alone for some time. Analyze what your strengths are and try understanding yourself. If you haven’t found your strength points, well you have to find one!

• If still you are not able to find your USP, think about the situations where you have been appreciated by your professors and friends. And ask your close friends

• Start reading articles and blogs as this will help you in better understanding and gaining different views on subjects like marketing, stock markets, advertisements, etc. This will not only help you in broadening your mind horizon but also reading blogs/articles a day before interview will help you tremendously and is a sure shot way to score awesome in the interviews!

• Understand where your interest lies and work towards getting placed in that area of interest. This is VERY significant because if you work in a different area of your choice, your interest level wanes and maybe in 3 months or so you will be looking for ways to escape that job. So don't get placed just for the sake of getting placed

• Know that working in a company is not just about strategies, models and data. It’s also majorly about you and the connection with people around you. The way you deal with everyone and stakeholders is very imperative. So focus on improving your EQ

• Go and interact with your professors, especially visiting faculty. Talking to them can broaden your understanding and provide a holistic perspective on the industry – the good and the worse. Also visiting faculty can be a good catalyst for industry contacts

• Talk to seniors and alumni from different backgrounds and ask them on different job prospects, growth and scope. This will provide a relevant career direction for those who haven’t found one

• SUPER TIP! : Imagine what position you would want to be in after 10 years. Search for people in LinkedIn for that particular position. Go through their Past Experiences and Companies they have worked to reach this particular position. You get to know how many years it takes to arrive at that particular position. For example, You aim to be the Marketing Head of a Textile Brand, search for Marketing Head in LinkedIn and go through relevant profiles. You will get to know the number of years it took that person to arrive at that particular level, whether they started with a small company or a MNC brand, etc. Go through 8-10 profiles and you will get a direction on how to reach your career goal.

Also this method will help you to understand if shifting specialization can have any bearing in your career objective. For example you aim to be a Creative Head in an Ad agency but currently working in Sales. You can check different LinkedIn profiles of Creative Heads and check if any of them worked in Sales earlier. If you find one, you can message your apprehensions or any other queries on changing of specialization and they will surely reply you with insights and tips.

You have almost reached the end of your course and now it’s time for a decision. Make well researched move rather than blindly going behind compensation. You have invested two crucial years of your precious life. Plan well so you reap the benefits of an awesome career!
Good luck!

Auto Fare Card for Mumbaikars

2012-11-08T03:41:00.000-08:00

We were thinking of few ideas which can be helpful in a way that it solves problems of common man. After brainstorming , we rounded on Auto Fare Card. Lot of mumbaikars have been cheated out by the rick drivers. Also there have been confusion on how the meter charge applies in Mechanical and Electrical meters So we decided to create a fare card for Mumbaikars which was updated in October 2012. And the result is below.

There are 2 versions of this card- Electronic and Mechanical.Save this images in your smartphone.And don't get cheated by the rickshaw drivers again!

My take on an report in ET:HSBC suspends MF, insurance sales in India amid allegations of mis-selling and certain sharp practices

2012-11-03T02:40:00.001-07:00

I read a report today in economic times that HSBC has suspended MF and Insurance sales in India amid allegations of mis-selling and certain sharp practices.

One factor was a surprise and the other was not.

What did not surprise me were the allegations of mis-selling of products

A bank makes profit is many ways. Core activity of a bank is borrowing and lending of money, and that is where they make larger chunk of profits. Bank also makes good money by distributing various financial products like insurance and mutual funds. These are called as third party distribution.

Like any other profit making entity, banks also wishes to make handsome profits. One of the focus for banks is to make good money in third party distribution and how can do this?

Probably by 3 things:

1. Sell more and more products to the customer

Is this mis-selling?

We at Fintotal firmly believe that approach to personal finance should be as simple as possible. For a successful financial life one needs to probably have one term insurance, one family floater mediclaim, 2-3 mutual fund schemes and around 10 stocks. Anything more than this is too many for a retail investor.

2. Sell more and more products to as many customers possible

Is this mis-selling?

Not really as long as appropriate products are sold.

3. Sell products that give them more commissions

Is this mis-selling?

Financial products be it insurance or mutual funds have various costs inbuilt in them. One set of costs are sales and distribution expenses. When the sales and distribution costs are high, naturally overall cost of the product goes up for the investor. This finally lowers the returns. But if bank wants to make more money, they will be inclined to sell products that give them higher commissions. That is exactly why they are more interested to sell investment linked insurance policies etc.

and what surprised me was that HSBC deciding to suspend selling of products.

Though we are not averse to banks selling products, we have a problem in the way they sell them. The conflict of interest will always remain; seller and buyer are not in a win-win situation.

Banks should move from the ‘sell’ approach to ‘advice’ approach. It will be fair if they charge fee for client centric advice and not treat financial products like FMCG products- Sell, sell & sell.

Source: Fintotal Viewpoint on HSBC Mis selling

Our take on the SEBI regulations on separate NAV for direct investors

2012-09-28T00:32:00.002-07:00

From Jan 1 2013, fund houses will have a separate NAV plans for direct investors. What a brilliant move for nvestors! And not surprisingly the distributors are complaining.

One side is benefiting and the other side is not. Why is it so?

Let us first understand how the investors are benefiting: When you invest in mutual funds the company that manages funds charge asset management fee. Out of those fees a very small portion goes to the distributor. Even in cases where the investment was made without the help of distributors the charges remained the same.

SEBI now has guided the asset management companies to publish a separate NAV that will have lower asset management fees for direct investors. This is good news because the investors will get benefit of lower cost, which in turn will translate to higher returns.

Now, let us understand why distributors are unhappy: Distributors’ argument is when investor will have the option to earn slightly better returns, why investor will choose the distributor mode of investment? Another argument is that retail investors do not have adequate knowledge in selecting the right fund and they may invest in wrong funds.

Both the arguments are naïve. Investors will ultimately understand that if you want value you need to pay for it and if distributors are confident of their ‘value creation’ ability they should not worry.

Our take: Mutual funds are supposed to be simple products. All these years the mutual fund industry did not have that ‘orientation’. They kept launching hundreds of schemes, which added to the investor confusion. Investors find it as complex as directly investing in stocks or bonds if not more. This complexity has benefited distributors all these years. In fact they somehow managed to keep investors ignorant. This is one of the main causes of mutual fund industry not growing the way they should have.

The direct plan idea will motivate mutual fund houses to keep things simple. Each mutual fund will have just a couple of schemes under each category. Investors will then make friends with mutual funds.

Source: http://viewpoint.fintotal.com/Kudos-to-SEBI-for-No-Frills-NAV-for-Direct-Investors-in-Mutual-Funds/2373

Oh! Another complicated tax rebate scheme for a ‘ignorant’ investor. New rebate 80CCG.

2012-09-21T07:03:00.001-07:00

Article we published in Fintotal News Analysis

http://www.newsanalysis.fintotal.com/RGESS-to-Include-Mutual-Funds-ETFs-Investments/2336

Personal finance major cause of stress on employees

2012-09-13T01:02:00.000-07:00

Today a study done by Regus was published in economictimes. The study was to find the causes of stress on employees and not surprisingly, personal finance is topping the list. Majority of us are living a super- materialistic life and equate material achievement to happiness. All of us want happiness and this is where the chase for money starts. Our wants are getting endless and thus chase for money never stops.

Management has to address this, as a stressed employee means an unproductive employee. Unproductive employee means less profit for the company. HR managers are doing their best by dishing out pay hikes and promotions but still they are not able to satisfy its insatiable employees. Many companies have already realized the problem they have in their hands.

In my opinion, the answers lie somewhere else. Just paying them more is not the answer, equipping them to manage it effectively is the solution.

“Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime”

Reference: http://articles.economictimes.indiatimes.com/2012-09-06/news/33649919_1_stress-levels-indian-professionals-large-business-workers

Sad, moneysights.com have to shut down

2012-09-12T07:20:00.002-07:00

This is a very discouraging event for online personal financial services industry. Though they are not big enough in terms of their operations, they were really working hard to create a new approach to personal finance. Industry was watching them closely and eagerly.

Moneysights.com basically were online distributors of mutual funds. They built a platform where the investors can easily discover appropriate and suitable mutual fund products to meet their goals.

They have claimed that it is not financially viable to run the business anymore. This means they could not get enough revenue to sustain their operations and also could not foresee any viable business model for future. Looking at what has been reported it media, it seems they were funded by some good players.

Now, the big question is what is the future of personal finance startups in India? Interestingly, there are numerous players attempting to do something in this space and unfortunately not many are able to find the success formula yet.

In my opinion the potential is huge but the work you need to put behind is even larger. It is very well known fact that there is lack of financial literacy and unawareness among the masses. This presents opportunity for startups. But the approach is not at all simplistic in nature. It requires deep behavioral insights and extraordinary effort to get to success.