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Old 12th February 2013, 15:29   #391
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Default Re: Income Tax savings, Investments and Insurance

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Avi Bhai, if the purpose is to take life cover through this policy, do not go for it. LI policies are to be taken as a protection tool only. Opt for a simple term plan, you would get both the benifits of Section 80C and 10(D). Cheapest Life Cover can be purchased by appliying it online through various LI companies.

Edit : Just saw your mail on the investment already done. Please read the bond carefully after you receive it. Incase the terms are not what were mentioned at the point of discussions, you have 15 days Freelook period to cancel the policy or you may continue if you have liked the product.
Brajesh Bhai, thanks for the input. You being in the industry know better

I know of the freelook period and will cancel if i feel even a single thing is missing from what was explained during the discussion

However, the guy iam talking to is real sweet and assured me that he will have the two basic items implemented on the bond

Minimum Maturity Period when withdrawal can be done : 5 years

Sum Assured at 60 months of completion : Mention of that amount on bond a.k.a National Savings Certificate

If above doesnt happen, like you said i can always seek the benefit of freelook period and CANCEL
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Old 25th March 2013, 10:44   #392
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Default Re: Income Tax savings, Investments and Insurance

This is an utter noob/newbie question. Can anyone tell me what are the best funds that I can pick up from the market? Need to put 100K somewhere immediately.
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Old 25th March 2013, 11:26   #393
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Default Re: Income Tax savings, Investments and Insurance

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This is an utter noob/newbie question. Can anyone tell me what are the best funds that I can pick up from the market? Need to put 100K somewhere immediately.
Is it to park money safely? Or high returns? Or for tax benefits?

If its for the first option, then I would suggest to go for the 6 yrs POMIS in post office. Take the interest everymonth and have it deposited in RD in same post office.

If its for high returns / Tax benefits, then yes. You can look at the mutual funds.
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Old 25th March 2013, 13:49   #394
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Default Re: Income Tax savings, Investments and Insurance

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Is it to park money safely? Or high returns? Or for tax benefits?

If its for the first option, then I would suggest to go for the 6 yrs POMIS in post office. Take the interest everymonth and have it deposited in RD in same post office.

If its for high returns / Tax benefits, then yes. You can look at the mutual funds.
Thanks a lot for the quick input. Got one friend's financial advisor coming in today.

OT: Note to self: Wake up early next year!
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Old 25th March 2013, 15:00   #395
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Default Re: Income Tax savings, Investments and Insurance

You could also go into a debt fund. If you do it before March 31, and then exit it after April 2014, you'll get the benefit of double indexation which will effectively nil your tax on it. Post tax return might be ~ 9 - 10%
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Old 16th April 2013, 09:54   #396
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Is anyone investing in gold now that the price is almost touching the 2 year old price?
Or do you guys expect the price to go down further?
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Old 16th April 2013, 10:57   #397
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I have seen people adding spectacle bills/ optician bills in some category for tax exemption, anyone know which section?
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Old 16th April 2013, 11:09   #398
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I have seen people adding spectacle bills/ optician bills in some category for tax exemption, anyone know which section?
must be under medicals, for the 15000/- limit.
please note, some companies like wipro sponsor employee specs, no tax benefits in my opinion in this case !
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Old 7th May 2013, 19:57   #399
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I have seen people adding spectacle bills/ optician bills in some category for tax exemption, anyone know which section?
No deduction is allowed for the Spectacles/Contact lenses purchase. But the fees paid for an Opthamalogist is allowed.
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Old 7th May 2013, 20:03   #400
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In the above scenario, if the bank goes bankrupt then DCGIC pays a maximum of Rs. 1 Lakh to you if and only if if the Bank has taken an insurance from Deposit Credit Guarantee Corporation of India Limited, which is an subsidary of RBI. So, effectively its not RBI who is paying the amount.
It is only theoritically possible that banks can go bankrupt in today's situation.RBI has very strict regulations. The scams like Cobra post etc that we are seeing today is only from the illegal investment/binomee accounts point of view. Its just bascially about the KYC norms violation.

If still one has doubts about the banks liquidity, then keeping the funds with the PSU banks who do not window dress their Balance sheet will be a great idea.
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Old 10th May 2013, 15:57   #401
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Default Re: Income Tax savings, Investments and Insurance

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must be under medicals, for the 15000/- limit.
please note, some companies like wipro sponsor employee specs, no tax benefits in my opinion in this case !
Yes. spectacles (powered)/contact lens were covered as part of the medical reimbursement scheme in that company. The point is they had a policy where medical reimbursement (medical assistance as it was called) was 15k or basic salary (whichever is lower) & hence it was not technically same as the 15K medical claim limit which you are referring . In the standard 15K medical claim tax saving option, if you don't use it during the year, you get the money back at the end of the year, albeit after tax. In their policy, you don't get back any money at the end of the year.

Last edited by null : 10th May 2013 at 15:58. Reason: edit
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Old 5th June 2013, 22:17   #402
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On a long term basis (10 years and more), for setting up a periodic tax-free income, what do you suggest would be the best investment?

After investing in FDs for a few years now, I just started investing in MF because of the periodic dividend and lower tax liability on them, but I'm still not sure about the intriciate details. I looked at some companies like Mahindra Finance and JP Group offering FDs, but I really am not sure if they're safe.

Ideally, when I invest my post-tax income, I don't want to pay any tax on the interest earned. So, what do you suggest?
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Old 6th June 2013, 00:38   #403
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Default Re: Income Tax savings, Investments and Insurance

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On a long term basis (10 years and more), for setting up a periodic tax-free income, what do you suggest would be the best investment?

After investing in FDs for a few years now, I just started investing in MF because of the periodic dividend and lower tax liability on them, but I'm still not sure about the intriciate details. I looked at some companies like Mahindra Finance and JP Group offering FDs, but I really am not sure if they're safe.

Ideally, when I invest my post-tax income, I don't want to pay any tax on the interest earned. So, what do you suggest?
Hi
As far as company fixed deposits are concerned they are not totally safe like bank fixed deposits. What happens to the business conditions after 10 years is anybody's guess.
The past is replete with cases of good companies defaulting.
Though the dividend income is free in your hands please bear in mind that there is 12.5% dividend distribution tax which eats into the returns.
Quite a lot of investors periodically sell a small fraction of their holdings rather than opt for dividend. This way they don't pay taxes for equity /equity oriented funds. In case of debt/debt oriented funds the gains are taxable as per the rules.
Hope this helps.
Regards

Last edited by faustus77 : 6th June 2013 at 00:39.
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Old 6th June 2013, 10:04   #404
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Default Re: Income Tax savings, Investments and Insurance

The company FDs I'm looking at are offering a 3 year tenure with as high as 12.5% interest and include names like Unitech, Gati, JP and Shriram. I read JP playing with customers funds (non payment) on the Internet. No idea about the others. This I'm looking at a short-term perspective.

The 12.5% DDT is paid by the issuing company before they release dividend to its holders, correct?

Well, are you talking about SWP, or just normal withdrawal over a period of time?

I just need to setup a regular tax-free income so whatever works best!

Last edited by hellmet : 6th June 2013 at 10:13.
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Old 6th June 2013, 13:00   #405
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Default Re: Income Tax savings, Investments and Insurance

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Originally Posted by rki2007 View Post
It is only theoritically possible that banks can go bankrupt in today's situation.RBI has very strict regulations. The scams like Cobra post etc that we are seeing today is only from the illegal investment/binomee accounts point of view. Its just bascially about the KYC norms violation.

If still one has doubts about the banks liquidity, then keeping the funds with the PSU banks who do not window dress their Balance sheet will be a great idea.
Another angle is to avoid banks which do not have a good track record. The first name that comes to my mind is Rupee Bank.
I know some people who have several lakhs in their accounts there, but they have no access to that money since February/ March.

So, no liquidity.
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