Education loans come with tax benefits. However, one should be careful while ascertaining the quantum of benefit and the conditions that apply.
Dividends are paid out of the profits earned by mutual funds. One should understand the dividends in detail to measure the real return.
Due to many reasons the mutual fund schemes â€˜disappear‘. And investors in these schemes if are not tracking them at regular interval, find it difficult to track their investments. Here is what they should be doing.
The problem in many cases lies with actually recognising that there are receipts that are taxable.
Senior citizens may have a certain preference for Senior Citizen Saving Scheme given fall in interest rates. However, do not ignore the tax benefit associated with it while investing and of course the tax liability on interest earned on it.
New KYC requirement expects investors to furnish their networth details, and if they are politically exposed.
Non-resident Indians may be keen to invest in Indian mutual funds given the possibility of making high returns. However, one must be aware of the legal and compliance requirements.
Update your details with the income tax authorities. This helps the tax authorities to clear your tax related work quickly.
Some wealth managers and investment advisors have come up with modified SIP that claim to offer superior returns. However, there is no guarantee that such an objective is achieved.
While the interest is taxed at marginal rate of tax, movement in gold price will lead to capital gains.
There is nothing different in the new fund and after a period of time it is likely that the portfolio of some existing fund and the new fund has a lot of similarities or common holdings.
Regulator and other stakeholders need to ponder over various factors while selling mutual funds on ecommerce portal.
Interest on saving bank account has the tax deduction of Rs 10000 per year. This can be used to reduce the tax liability.
The manner of implementation of the process will be watched carefully because it has the potential to ensure that one of the biggest worries of the tax payer is addressed effectively.
Investing in mutual fund schemes that offer focussed portfolios or low rated bonds, can increase the risk. Also a balanced fund can be a risky bet.
Past performance is no guarantee that the future performance will be good of the mutual fund scheme. The same holds good for rating and ranking.
Online submission of 15H and 15G forms will offer a lot of convenience to the senior citizens. Also it will help tracking the errors, if any.
Investors should first take a look at the fund where they have put their money and the nature of the fund.
The process of tax deferment means that for a particular investment there is no immediate tax to be paid.
Investment in national saving certificate fetches tax deduction under section 80C of income tax act. The interest accrued on NSC also is tax deductible.
While some expenses such as exit loads are known, there are some such as expense ratio and dividend distribution tax may be hidden.
Once there is an asset that is present then several expenses related to the running of the asset would have to be allowed as a deduction. So for example in case of a car the running and maintenance cost of the car that is allocated for the purpose of business or profession would be allowed as a deduction.
There is a broad market risk that all investors face. Also they are exposed to risks associated with individual investments held in their portfolios.
Income of the individual should support his gold holdings. Disproportionate holdings can attract penalties.
JP Morgan mutual fund recently announced split of units. This does help investors protect liquidity of units at fair price that houses standard assets.