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Old 28th December 2014, 18:16   #481
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This is painful to resolve remotely. I think we need a petition which prohibits IT department to come up with issues older than 2 financial years for individuals. They should have systems in place to audit the returns.
Pay the tax demanded. Just include the data with your tax return when you efile it. Should be fine. You can compare tax paid in your form 26as with what's in your return
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Old 28th December 2014, 20:48   #482
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Any idea how I get online access to my existing SBI PPF account? Do I need to get some forms from SBI and fill it up?
I am not sure if they allow online access to PPF account. But we can deposit funds in PPF account through net banking. For that we need to know the IFSC code of the branch and PPF account number. Transfer a test amount, say Rs50 first, check your passbook, and transfer the rest.
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Old 28th December 2014, 21:03   #483
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If your PPF is with a bank rather than post office you can get its customer ID linked with your existing account at the bank and see the statement that way. I did that with sbi
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Old 28th December 2014, 23:05   #484
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Hi everybody.
A few days back received a bill from Thyrocare which states that preventive healthcare entitles you to a rs 5000 deduction.
Checked with my CA and he is not aware of it.
Could somebody please confirm the section under which it is admissible.
And if blood testing can be a termed as a preventive check up?
Thanks a lot.
Regards
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Old 29th December 2014, 06:49   #485
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Default Re: Income Tax savings, Investments and Insurance

It will be part of your usual 80D allowance, as a comprehensive health checkup. If your medical insurance for you and your parents isn't already maxed out you can go for this, upto 5k which is the max limit for the test. Shop around to see which hospital etc offers the most bang for buck in your tests
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Old 29th December 2014, 14:20   #486
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Default Re: Is Reliance Easy Retirement Solution worthy as they showcase?

A Reliance executive tried to sell me the below investment.

Easy Retirement Solution (ERS) from Reliance:

1. Pay 1 Lac every year for 10 years
2. From year 11 through 15 they will pay us 1.35 Lacs every year (5.4 Lacs in total)
3. At the end of 15th year they will pay us the benefit of 7.4 Lacs (or convert this into a monthly pension)
4. There is a term insurance coverage of 20 Lacs. Term insurance do not have a maturity value, the 20 Lacs is payable only in the event of a contingency (demise of the investor)
5. In case of a contingency, they will pay the term insurance cover of 20 Lacs immediately plus the benefits as per point 2 and 3.
6. The total benefit in case of no contingency is 12.8 Lacs after 15 years
7. The total benefit in case of a contingency is 12.8 Lacs (after 15 years) + 20 Lacs (Immediately)

Below is an alternate investment I would consider, risk free:

1. 1 Lac yearly premium is 8,333 monthly which need to be invested in a Recurring Deposit for 10 years. Current interest is 8.25%
2. After 10 years you will get 15.5 Lacs
3. Convert it into a Fixed Deposit for next five years, at the end of 5th year the value of investment is 23 Lacs
4. Take a term insurance with LIC for a coverage of 40 Lacs, the annual premium is 5663, total of 85,000 for 15 years
5. The total benefit in case of no contingency is 22.15 Lacs (23 Lac minus 85k term insurance premium), against the Reliance investment return of 12.8 Lacs
6. Total benefit in case of a contingency is 40 Lacs, against Reliance investment return of 32.8 Lacs

Please be very careful in choosing investments, it always looks great initially, until we work out an alternate investment that would be better. Every executive will showcase their product as the best with unimaginable benefits.

Looking forward to BHPians thoughts / experiences!

DC

Last edited by D C : 29th December 2014 at 14:37.
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Old 29th December 2014, 16:09   #487
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Default Re: Is Reliance Easy Retirement Solution worthy as they showcase?

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Below is an alternate investment I would consider, risk free:

Looking forward to BHPians thoughts / experiences!

DC
Do this calculation of RD and FD interests includes mandatory yearly IT deductions?
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Old 29th December 2014, 17:18   #488
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Do this calculation of RD and FD interests includes mandatory yearly IT deductions?
That's a very valid point.

I haven't calculated tax, assuming that the tax implications would be the same on both of the investments and depends on individual tax payers.

Even if the tax implication is only on the RD or FD interest at a maximum of 30%, it is still beneficial. As per my calculations the total tax amount for 15 years is around 3 Lacs.

The other workaround is to invest in the name of your spouse or parents whose income is less or NIL. The yearly interest income that is taxable on the RD or FD would be less than 1.25 Lacs approximately.
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Old 29th December 2014, 17:23   #489
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Default Re: Is Reliance Easy Retirement Solution worthy as they showcase?

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The other workaround is to invest in the name of your spouse or parents whose income is less or NIL.
They will then need to show where they got the capital from.
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Old 29th December 2014, 17:58   #490
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They will then need to show where they got the capital from.
This won't an issue if the parents or spouse have an income that is below the tax slab. For others, there seems to be some ways to do this. Some sources for your reference.

Source 1

Source 2

Last edited by D C : 29th December 2014 at 18:10.
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Old 29th December 2014, 18:43   #491
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Default Re: Is Reliance Easy Retirement Solution worthy as they showcase?

Gifts in the hands of close blood relatives such as spouse and parents are tax free in their hands. However if they have zero income and are your dependent then their income may be clubbed with yours for tax purposes so be careful of that
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Old 29th December 2014, 19:04   #492
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Default Re: Is Reliance Easy Retirement Solution worthy as they showcase?

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This won't an issue if the parents or spouse have an income that is below the tax slab. For others, there seems to be some ways to do this. Some sources for your reference.

Source 1

Source 2
Both your sources say that interest earned by wife will be added to your income and taxed accordingly.
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Old 29th December 2014, 20:03   #493
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Default Re: Is Reliance Easy Retirement Solution worthy as they showcase?

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Both your sources say that interest earned by wife will be added to your income and taxed accordingly.
Here is an extract from one source

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Through Parents

You can save tax through our own parents as well as through our Parent in-laws. To achieve this goal you needs to give away a portion of your funds, either as a gift or a loan, to your parents as well as your parents in law so that in years to follow your income tax burden becomes lighter as the income on funds transferred by you to them which would bring in income would be taxed in their hands.

Assuming that both the parents are senior citizens. Hereís how you go about it. Income tax deductions allow senior citizens a tax-free income of Rs 2.5 lakh. To exhaust this limit, say you gift Rs 28 lakh to each parent in cash. Of this, both can individually put Rs 15 lakh in a senior citizens savings scheme that earns a return of nine per cent and pays interest every quarter. Each will get yearly interest of nearly Rs 1.4 lakh. If they invest the remaining Rs 13 lakh each in the State Bank of Indiaís (SBI) fixed deposit (FD) of eight-years (at an interest rate of 7.5 per cent) that pays interest each quarter, it will fetch them an income of nearly Rs 1 lakh annually. That means both parents have earned Rs 2.8 lakh from the senior citizen saving scheme and another Rs 2 lakh from SBIís five-year deposits each year. A total savings of Rs 4.8 lakh Ė the tax-free limit (Rs 2.4 lakh) that each parent enjoys. So, they donít even need to file tax returns.

Same planning can be done for parents in laws.

Through Your wife

Married taxpayers can make a substantial saving of income tax by setting up two separate independent income tax files, one each for the husband and the wife. If your wife is already filing Income Tax Return then she may continue filing the return with hew new surname and address or with her old surname and address.

Thus, as a result of marriage one should plan a separate income-tax file of the wife. However, care should be taken to ensure that no direct gift or transfer from husband is made to the wife as clubbing provision may get attracted.
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Old 29th December 2014, 23:49   #494
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Default Re: Income Tax savings, Investments and Insurance

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It will be part of your usual 80D allowance, as a comprehensive health checkup. If your medical insurance for you and your parents isn't already maxed out you can go for this, upto 5k which is the max limit for the test. Shop around to see which hospital etc offers the most bang for buck in your tests
Hserus.
Hi.
Thanks a lot for your response.
After reading your reply checked on Clear Tax. This is what I got so as far as I am concerned she will get the 5000 additional benefit.
Deductions on Medical Insurance
Section 80D: Deduction in respect of Medical Insurance

Deduction is available up to Rs. 20,000/- for senior citizens and upto Rs. 15,000/ in other cases for insurance of self, spouse and dependent children. Additionally, a deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 20,000/- if parents are senior Citizen and Rs. 15,000/- in other cases. Therefore, the maximum deduction available under this section is to the extent of Rs. 40,000/-. From AY 2013-14, within the existing limit a deduction of upto Rs. 5,000 for preventive health check-up is available.

Thanks a lot once again Regards
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Old 30th December 2014, 00:33   #495
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Default Re: Is Reliance Easy Retirement Solution worthy as they showcase?

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Originally Posted by D C View Post
Here is an extract from one source
You can save tax through our own parents as well as through our Parent in-laws. To achieve this goal you needs to give away a portion of your funds, either as a gift or a loan, to your parents as well as your parents in law so that in years to follow your income tax burden becomes lighter as the income on funds transferred by you to them which would bring in income would be taxed in their hands.
Is this applicable for salaried folks who get their income tax deducted at source? Under which header should this be mentioned as an exemption?

I can understand how this can be done in case of self-employed individuals.
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