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Old 30th January 2015, 13:16   #511
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Default Re: Income Tax savings, Investments and Insurance

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My view is that if they have asked for it, you should do it. Not a totally unreasonable request, as it could otherwise be subject to misuse. e.g. someone could use an old certificate for claiming tax benefit even if the subject has passed away since the certificate was issued.
I agree and have no issues getting it done again if required. However, the tax policy clearly states that if the condition is progressive only then re-certification is required.

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All you have to do is to claim the 80DD amount in your tax return, and make sure that all payments are by cheque or credit card, rather than cash, so your PAN is linked to the payments.
yes, I'll goahead and claim it while filing returns.

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I am not entirely sure whether you already have a certificate from the Maharashtra State Medical Board. If so, then as far as I know your employer should accept the certificate if it states that the disability is permanent.
Yes, it's an official govt certificate stating his condition (60%, permanent/non-progressive)

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I think the company accountant is just blindly following a policy that says "only this year's documents will be considered".
Yeah, we have outsourced our payroll to Hewitt and they just go by the book. I will claim it later. Thank you all for the concern and info.

Cheers!!!
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Old 2nd February 2015, 14:50   #512
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Default Re: Income Tax savings, Investments and Insurance

I wish to deposit 100k every year into a secure saving/investment plan and had been contemplating PPF or NSC. PPF's 15-year lock-in is the only thing pulling me away but I'm not sure if its that bad compared to NSC.

Also, the way the interest rate's have gone down in the last 2 decades is it possible that it comes down to an interest rate of 4-5% in the next 4-5 years?

My objective is to simply park some money that I may use in the later part of my life for an unconventional expense.
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Old 2nd February 2015, 15:54   #513
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I wish to deposit 100k every year into a secure saving/investment plan and had been contemplating PPF or NSC. PPF's 15-year lock-in is the only thing pulling me away but I'm not sure if its that bad compared to NSC.
PPF is one of the rare investments in which the interest is tax free. I always max out PPF before any other investment. You can also have a PPF account for your wife even if she isn't working.

If PPF rates come down to 4%, that would also mean that FD rates will also be around the same figure. So it would still be a decent investment.

Last edited by carboy : 2nd February 2015 at 15:57.
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Old 2nd February 2015, 15:56   #514
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PPF's 15-year lock-in is the only thing pulling me away but I'm not sure if its that bad compared to NSC.
My objective is to simply park some money that I may use in the later part of my life for an unconventional expense.
PPF doesnt have 15 yr lock in period. Its actually 4 yrs. You can start withdrawing from the 5th yr subject to a calculation. Google and you will find it. The attraction with PPF is that the interest earned are tax free and the govt controls the interest rate. NSC does have a 6 yr lock in period. The options you can look for is 5 yr Fixed deposit or Debt funds.

If you are willing to take the risk, then you might think of balanced funds too.
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Old 2nd February 2015, 16:02   #515
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Default Re: Income Tax savings, Investments and Insurance

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PPF is one of the rare investments in which the interest is tax free. I always max out PPF before any other investment. You can also have a PPF account for your wife even if she isn't working.
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Originally Posted by ghodlur View Post
PPF doesnt have 15 yr lock in period. Its actually 4 yrs. You can start withdrawing from the 5th yr subject to a calculation. Google and you will find it. The attraction with PPF is that the interest earned are tax free and the govt controls the interest rate. NSC does have a 6 yr lock in period. The options you can look for is 5 yr Fixed deposit or Debt funds.

If you are willing to take the risk, then you might think of balanced funds too.
I was mainly worried about the falling interest rates else I think I'd have to agree with you both and probably max out the PPF account before going elsewhere.

In case the interest rates fall way down I can simply keep withdrawing money from 5th year onwards.

One question though, should I put 100k in PPF in Mar'15 or wait till Apr'15?
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Old 2nd February 2015, 16:31   #516
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Default Re: Income Tax savings, Investments and Insurance

The interest rate is not what it seems. PPF is exempt exempt exempt - so a 8.5% ppf would essentially involve not paying any tax on the interest at all, versus your being taxed at whatever slab you fall in, on interest accrued from say an FD.

As for what to invest in, talk to a good "for fee" planner rather than bank salesmen, neighborhood LIC / mutual fund agent unclejis etc. Your finances, your spending goals etc need thorough review before you commit such amounts of money on a consistent year on year basis.

PM me for a good one that I use personally. (edited)
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Old 2nd February 2015, 16:40   #517
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One question though, should I put 100k in PPF in Mar'15 or wait till Apr'15?
If you can afford it, both in Mar 15 and Apr 15. And 1.5 lakhs each time.
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Old 2nd February 2015, 17:04   #518
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If you can afford it, both in Mar 15 and Apr 15. And 1.5 lakhs each time.
Every year put ppf deposits at the very beginning before the 5th of April for maximum interest accrual. If in instalments, definitely before the 5th of whichever month you deposit it in.
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Old 2nd February 2015, 17:16   #519
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Default Re: Income Tax savings, Investments and Insurance

Quote:
Originally Posted by fine69
I wish to deposit 100k every year into a secure saving/investment plan and had been contemplating PPF or NSC. PPF's 15-year lock-in is the only thing pulling me away but I'm not sure if its that bad compared to NSC.
Like others clarified, money is not locked for 15-years as most people assume - there are options to access part of the money as loan or withdrawal much earlier. Also, the power of compounding is what makes PPF such a great option (apart from the Exempt-Exempt-Exempt benefit) - so the earlier you start, the better. And time moves so quickly that before you know it, 15 years would be there and you have a nice nest egg stashed away. Current deposit limit is 150K every year.
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Old 4th February 2015, 20:05   #520
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PM me for a good one that I use personally. (edited)
I take this offer is only for people based in Chennai?
I am looking for a good financial advisor here in Bangalore.
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Old 4th February 2015, 20:36   #521
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I take this offer is only for people based in Chennai?
I am looking for a good financial advisor here in Bangalore.
The guy is actually in Hyderabad. And the stocks / mutual funds etc that you invest in are traded in Mumbai.

Does it really matter where you get the advice from?

Note that I've worked in offices where I've carried on long conversations over instant messenger with a guy sitting a few cubicles away, so I'm probably biased in how I'd answer that.
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Old 4th February 2015, 23:11   #522
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Default Re: Income Tax savings, Investments and Insurance

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Every year put ppf deposits at the very beginning before the 5th of April for maximum interest accrual. If in instalments, definitely before the 5th of whichever month you deposit it in.
Hserus
Hi.
It is great to read your posts
I have a vague recollection of reading somewhere that the fifth is not the cutoff date for interest calculation. It is from the date of deposit.
How to verify? Any idea?
Regards
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Old 4th February 2015, 23:27   #523
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Default Re: Income Tax savings, Investments and Insurance

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Hserus
Hi.
It is great to read your posts
I have a vague recollection of reading somewhere that the fifth is not the cutoff date for interest calculation. It is from the date of deposit.
How to verify? Any idea?
Regards
Lowest balance between EOD on the 5th day, and the last day in the month.

This article explains it beautifully.

http://www.jagoinvestor.com/2012/02/...ted-video.html
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Old 5th February 2015, 11:24   #524
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Read in newspapers today that FM is thinking of increasing the lock-in of PPF to 20 years. Then what will happen to investors like me who have already invested considering a 15 year horizon.
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Old 5th February 2015, 11:32   #525
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Red face Re: Income Tax savings, Investments and Insurance

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Then what will happen to investors like me who have already invested considering a 15 year horizon.
No headaches of renewing again for 5 years. You are saved the trouble isn't it?
Even if it is raised to 20 years, the withdrawal process should have been simplified.
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