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Does Investing In Mutual Fund Provide Income Tax Benefit? Yes it's ELSS Fund!

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Equity Linked Savings Scheme  If you are thinking to invest in mutual fund and also at the same time want to get tax benefits on your investments, Then ELSS (Equity Linked Savings Scheme) is the way to get it done! About ELSS An Equity Linked Savings Scheme (ELSS) is an open-ended mutual fund that doesn't just help you save tax, but also gives you an opportunity to grow your money.  It qualifies for tax exemptions under section (u/s) 80C of the Indian Income Tax Act up to 1.5 Lac investment. ELSS funds are a category of mutual fund promoted by the government in order to encourage long term equity investments. Under this scheme, most of the fund corpus is invested in equities or equity-related products.  There are two categories in ELSS mutual funds which are dividend and growth. Some key Features of Equity Linked Savings Scheme You can invest in ELSS through the way of Lump-sum investment or through SIP (Systematic Investment Plan)   Minimum Investment is as low as Rs. 500/- Lock-

Senior Citizen Saving Scheme

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Senior Citizen Saving Scheme SCSS is an excellent investment option for senior citizens looking for long-term saving schemes which offer security with other additional benefits. Senior Citizens Savings Scheme (SCSS) is a government-backed savings instrument offered to Indian residents having age over 60 years. This deposit will be matured after 5 years from the date of account opening but can be extended only once for additional 3 years (Total - 7 Years) .   You can avail the scheme from P ost offices and recognized banks all around India. Some Key Features of Senior Citizen Saving Scheme Minimum Investment - 1,000/- Per Person Maximum Investment - Rs. 15,00,000/- Per Person Minimum entry age - 60 Years Rate of Interest (From 01-04-2020) - 7.4% per annum (Interest paid quarterly) By investing Rs.15 lac one could earn Rs. 27,750 every quarter (1,10,000/ year) Benefits Of Senior Citizen Saving Scheme Highest Interest rate (7.4% per annum) among all the investment options available

Taxes on Mutual Fund - In India

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Tax on the Indian mutual fund is divided into Two categories Tax on Equity Mutual Fund If the investment is done for more than 1 year before withdrawal, then it will fall under Long Term Capital Gain. The tax will be 10% on the profit exceeding Rs-1 lakh. If the investment is done for less than 1 year before withdrawal, it will fall under Short Term Capital Gain. The tax would be flat 15% on the profit. Tax on Debt Mutual Fund If the investment is done more than 3 years before withdrawal, it will fall under Long Term Capital Gain. The tax would be 20% on the profit after indexation (indexation consider inflation and hence the effective tax will be less than 20%). If the investment is done less than 3 years before withdrawal, it will fall under Short Term Capital Gain. The tax would be deducted according to your tax slab. Note: If the mutual fund has more than 65% allocation in equities, it will fall under equity mutual fund. Let’s first understand the tax on equity mutual fund- Case 1

Income Tax in India (FY 20-21)

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Income tax is a type of tax that governments impose on income generated by businesses and individuals within their jurisdiction. Income tax is the source of revenue for Government. there are two types of taxes one is personal income tax and another one is corporate tax. Personal Income tax  Personal income tax is levied on an individuals wages, salaries and other types of income. Corporate Income tax Business income taxes apply to corporations, partnerships, small businesses, and people who are self-employed. In this article we will be focusing on only Personal Income Tax  Income Tax Slab In India, where all the individuals earn an income in very large and diversified range, levying a tax on all individuals at a specific rate would not be a fair policy. The Act, therefore, segregates income ranges and levies tax at different rates as per the segregation. These groups are thus known as tax slabs. The slabs also vary based on age if the taxpayer is an individual and as per the classifica

SIP - Systematic Investment Plan

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Systematic Investment Plan - SIP It is one of the best and very simple method of investing in Mutual Funds. This is the method in which a common man who does not know much about Equity market and mutual fund can invest and earn smart profits.   If a person wants to invest in mutual funds without much efforts, can opt for SIP method of investing. What Is SIP? SIP is a method of investing a fixed sum of money, regularly (On fixed dates of months), in a mutual fund scheme. SIP allows one to buy units on a given date each month, so that one can implement a saving plan for themselves. The biggest advantage of SIP is that one need not time the market. Let us understand SIP with an example Client : Hi Mr. Advisor, I want to know the difference between stock SIP vs Mutual fund SIP.  Which one is better & why ? Can u explain both the concepts ? Advisor : Yes sir surely. Why not. Well, stock SIP is averaging and Mutual fund SIP is rupee cost averaging. Albert Einstein quote... Compound inte

Which Bank is Providing High Interest rate on Fixed Deposits in India?

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Fixed Deposit It is One of the famous investing instrument among the Indian people to generate revenue out of their savings. Due to COVID-19 pandemic almost all banks have reduced their interest rates on the FD's. Which affected the revenue of many people like Senior Citizens, Widow and many other people. So, Let us see which bank is offering high return on FD In below table let us know how much interest rate the top Indian banks providing on FD Presently PNB is providing better interest rate than all other top banks of India. So one can invest in these banks to get better and safe interest rates. 

Are You Insured?

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Insurance Definition of Insurance Insurance is an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium. Insurance is a protection against any loss or damage for which the insurance is purchased, the purpose of Insurance is to protect and fulfill  your family's financial needs in your absence. Getting insured is the one of the major step towards the Financial Planning Types of Insurance Health Insurance Life Insurance Term Insurance Apart from above mentioned insurances there are many other types but for a middle class individual these 3 types serve the purpose Why one should buy Insurance? 1. Health Insurance Now a days medical expenses are very high and to get treated in well established hospitals with all the facilities will cost you hefty. And this may drain out all your life savings to treat some illness, hence to get rid of any such situation one