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Old 8th March 2014, 14:56   #451
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Originally Posted by saket77 View Post
Since, you don't have much time, and the amount is not very high, you may consider a 5 year term FD. The only downsides are that it is a 5 year lock-in, and the interest generated is not tax free. However, the amount you put into the FD will qualify as deductions, obviously total deductions subject to equal or less than one lakh.



Regards,

Saket

Thanks. My Banker said, even if I put 60k in tax-saving FD, I will get the acknowledgement after a week. Hence I was looking for something that gives the same-day acknowledgement.
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Old 8th March 2014, 15:57   #452
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Default Re: Income Tax savings, Investments and Insurance

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Thanks. My Banker said, even if I put 60k in tax-saving FD, I will get the acknowledgement after a week. Hence I was looking for something that gives the same-day acknowledgement.
Even if you get acknowledgment a week later, you can always claim the deduction while filing your return in June-14. Just that the investment must be made before the end of this month and this date (of march) must be on the FD certificate. Creating FDs out of same bank a/c where the amount is lying should not take more than 1 or 2 days at the max.

Last edited by saket77 : 8th March 2014 at 16:00.
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Old 17th April 2014, 18:56   #453
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Default Re: Income Tax savings, Investments and Insurance

What are the super short term investment plans available?

Tenure = 6 months

I'm a complete noob at this and have no idea outside of the regular investments in LIC/MF for tax savings.
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Old 17th April 2014, 19:31   #454
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Default Re: Income Tax savings, Investments and Insurance

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Originally Posted by praful View Post
What are the super short term investment plans available?

Tenure = 6 months

I'm a complete noob at this and have no idea outside of the regular investments in LIC/MF for tax savings.
If its just 6 months put it in a FD or an RD.
Upto 1 year look at Liquid funds or short term debt funds or Ultra short term funds.
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Old 7th May 2014, 12:51   #455
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Default Re: Income Tax savings, Investments and Insurance

My PPF account has matured and it has collected a sizable corpus.

Now, I have two options
1. Extend account by 5 years at a time and keep a majority of the money locked in
2. Take the entire money now, invest it somewhere else and open another PPF account and start saving again.

I have been looking at buying a house for last couple of years and perhaps I should find something in the next 6 months. So, liquidity is a good thing for me in the current situation.

Investing that large corpus elsewhere would mean, I have to pay 30% tax on the interest gained, unless I try to put into some debt funds (and lock the capital for 1 year) and then pay 10% tax without indexation or 20% with indexation.

Is there some other investment instrument where I can have low tax and short lock-in period?
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Old 12th May 2014, 15:00   #456
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Default Re: Income Tax savings, Investments and Insurance

Just came across this interesting article.
http://www.moneycontrol.com/news/tax...g_1028448.html


Can someone comment on points 10, 11 and 13?
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Old 30th May 2014, 11:04   #457
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Default Pension Plans - advice sought.

Hello All,

Can anyone detail pros and cons of buying pension plans?

I am currently having NRI status but planning to soon start a start up business in india.

Currently I am having few ULIPs which are at decent return levels. I intend to close them and instead switch to pension plans.

To cover the loss of insurance i have bought term plan.

How do pension plans fare in providing social security. All my european friends do invest regularly in compulsory social security schemes. Just want to know EXPERT opinions from the forum.
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Old 30th May 2014, 13:23   #458
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Smile Re: Income Tax savings, Investments and Insurance

Quote:
Originally Posted by S_U_N View Post
1. Extend account by 5 years at a time and keep a majority of the money locked in
2. Take the entire money now, invest it somewhere else and open another PPF account and start saving again.
IMO option 1 is more suitable unless you have a goal to be completed in very near future. Option 2 doesnt make any sense.

Quote:
I have been looking at buying a house for last couple of years and perhaps I should find something in the next 6 months. So, liquidity is a good thing for me in the current situation.
If this is the case the only options available without any lock in are FD, Liquidy Funds or FMP's

Quote:
Investing that large corpus elsewhere would mean, I have to pay 30% tax on the interest gained, unless I try to put into some debt funds (and lock the capital for 1 year) and then pay 10% tax without indexation or 20% with indexation
You cant have the cake without paying for it, can you?

Quote:
Is there some other investment instrument where I can have low tax and short lock-in period
Do let us know if you find one, we have been waiting for long for this option.
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Old 1st June 2014, 12:09   #459
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Default Re: Income Tax savings, Investments and Insurance

Quote:
Originally Posted by S_U_N View Post
Just came across this interesting article.
http://www.moneycontrol.com/news/tax...g_1028448.html


Can someone comment on points 10, 11 and 13?
I posted this in Jagoinvestor forum and this is what i got -

10. Section 269SS of the Income Tax Act, 1961 does not allow taking cash loans on amount of above rs. 20000/-
11. Similarly, Section 269T prohibits the re-payment of any loan or deposit on amount of above rs. 20000/-
If IT department finds out that you are involved in such transactions, then they can levy penalty as high as the amount itself. This law exists to prevent tax evasion. Always, use bank cheques or demand draft
http://www.business-standard.com/art...0600100_1.html
13. If the cost of home exceeds rs. 50 lakhs, then you have to pay TDS
http://articles.economictimes.indiat...vable-property
https://www.tin-nsdl.com/TDS/TDS-FAQ.php
The rate is 1% if PAN is provided, else 20% if seller does not have disclose his/her PAN. This rule is not applicable on rural agricultural land.
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Old 17th June 2014, 12:09   #460
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Default Re: Income Tax savings, Investments and Insurance

Guys couple of queries.
1. My dad bought a house for 5L 3+ years ago and now selling it for 21L. Profit made= ~16L. The taxation will on Long Term Gains as sell is after 3 years. I read that this amount can be invested in buying another capital asset within 2 years without paying any tax. Is this true for 21L or 16L? Also what should be mentioned in returns assuming the capital investment using this amount will be made in FY15-16?

2. If we use couple of lakhs from this amount for personal use, we will pay tax on only the used amount. Correct?

3. I plan to use the above fund plus take loan of about 25L on my name and buy a house. In such case if the house is shown as jointly owned by me and dad, will he get tax rebate on the above amount and will I get tax rebate on interest paid on premium?

Sorry guys, I am a layman in taxation so if possible, please explain in simple terms.

Last edited by akshay380 : 17th June 2014 at 12:11.
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Old 17th June 2014, 21:51   #461
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Default Re: Income Tax savings, Investments and Insurance

Hello all,

My cousin sister has bagged a Government contract from Singareni Collaries (a Coal India Enterprise) of a few hundred crores of rupees.

She is looking for investment/loan of a few crores of rupees. Can someone help here?

For more information, you can p.m me.

Note to Mods: If this is not the right forum, request you to delete the above post. Posted the above as the title of this thread reads "Income Tax savings, Investments and Insurance".
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Old 18th June 2014, 06:45   #462
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Default Re: Income Tax savings, Investments and Insurance

Quote:
Originally Posted by akshay380 View Post
Guys couple of queries.
1. My dad bought a house for 5L 3+ years ago and now selling it for 21L. Profit made= ~16L. The taxation will on Long Term Gains as sell is after 3 years. I read that this amount can be invested in buying another capital asset within 2 years without paying any tax. Is this true for 21L or 16L? Also what should be mentioned in returns assuming the capital investment using this amount will be made in FY15-16?
...
Sorry guys, I am a layman in taxation so if possible, please explain in simple terms.
Just like you, I'm a layman too when it comes to taxation, etc but I remembered a Chartered Accountant telling me this earlier so my understanding is that the amount considered for capital gains will not be 21 - 5 = 16L!, it will be a smaller number.

You need to apply "indexation" and hence the amount will be lesser and that amount will only attract capital gains if not invested. Please talk to a CA and you will have a better idea.
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Old 18th June 2014, 09:26   #463
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Default Re: Income Tax savings, Investments and Insurance

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Originally Posted by NPV View Post
Just like you, I'm a layman too when it comes to taxation, etc but I remembered a Chartered Accountant telling me this earlier so my understanding is that the amount considered for capital gains will not be 21 - 5 = 16L!, it will be a smaller number.

You need to apply "indexation" and hence the amount will be lesser and that amount will only attract capital gains if not invested. Please talk to a CA and you will have a better idea.
Hey thanks for the reply. Last night I figured it out too. Posting here for benefit of fellow members.

Cost of property: 6,00,000
Year of property purchase: 2006
Selling price:21,00,000
Year of sale: 2014
CII in 2006: 519
CII in 2014: 939
Indexed purchase price: 10,85,549 --> 6,00,000*939/519
Capital gain: 10,14,451 --> 21,00,000-10,85,549
Tax (20% of Capital gain): 217109.8

Now someone please answer my questions 2 and 3

Last edited by akshay380 : 18th June 2014 at 09:27.
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Old 18th June 2014, 23:28   #464
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Default Re: Income Tax savings, Investments and Insurance

I got an email from IT department(CPC) about income tax demand for 1100 odd rupees
Its raised under section 1431a and is for assessment year 2010!!

Now what the hell is this. There are no other details except some DIN.

It says that any refund whatsoever will be adjusted against this.
How do I find out more?
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Old 19th June 2014, 08:50   #465
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Default Re: Income Tax savings, Investments and Insurance

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Originally Posted by tsk1979 View Post
I got an email from IT department(CPC) about income tax demand for 1100 odd rupees
Its raised under section 1431a and is for assessment year 2010!!

Now what the hell is this. There are no other details except some DIN.

It says that any refund whatsoever will be adjusted against this.
How do I find out more?
I too got it last year. It is funny that is takes this long. In my case, they missed the entire returns filed. So no deductions considered and taxes applied and demand sent.
The only way to get details is to meet your local AO who can give details of why this demand is raised.
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