Plan your tax-saving instruments – don’ t leave i

t for the last hour.

Even tax-saving investments can be routed through systematic plans.

Most of the tax-saving investments are for minimum of 3 years.

Determine which investment option to save taxes suits you the best.

Investments with mere intention of saving taxes might backfire on you.  

It’s that time of the year when most of the individuals are found scrambling to invest in tax-saving instruments just before the financial year-end. Currently, Section 80C of the Income Tax Act allows deduction of upto Rs.

1 lakh from the gross total income. Plus another Rs. 20,000 for investments in infrastructure bonds if this Rs.1 lakh limit is exhausted.

Let’s have a look at some of the tax-saving options available to individuals:

1) Public Provident Fund

Public Provident Fund, or PPF, is a long-term, st

atutory scheme of the Central GOI. Currently, the interest rate offered through government-backed small savings scheme is around 8%, which is compounded annually.

On maturity, you pay absolutely no tax under Section 80C.

This long-term scheme is for 15 years; hence if your investment horizon is short-term in nature, PPF is not meant for you as it locks your liquidity for a relatively long period of time. In this scheme, you need to invest a minimum deposit of Rs.500 and upto maximum of Rs.70,000 in a financial.

2) Unit-linked Insurance Plans

Unit-linked Insurance Plans (ULIPs), which are eligible for Section 80C tax rebate, areinvestment products that provide dual benefits of life insurance and savings element as a one stop solution for an individual’s financial goal. However, if you don’t need insurance, going with ULIP is not the best investment bet on the horizon.

Recently, insurance regulator IRDA had initiated a few corrective measures by hiking the threshold limit for ULIPs from 3 years to 5 years of lock-in period

and mandated a minimum guarantee for such plans. Now, the policyholders can also opt for pre-mature exit without any penalty.

3) Equity-linked Savings Scheme

Equity-linked Savings Scheme (ELSS)  is mutual funds that help you save taxes under Section 80C as well as generate decent long-term returns from the equity markets.

Such schemes are typically characterized by a three-year lock-in period.

However, the tax benefits of ELSS will be phased out with the introduction of the Direct Tax Code (DTC) starting from April 1, 2012. But, the revised code mandates that existing ELSS funds will be able to claim tax-exemptions.

So, this might just be your last opportunity to put money is lucrative tax-saving mutual funds.

4) 5-Yr Bank Fixed Deposits

You might be thinking how come bank fixed deposits are included in tax-saving schemes? Since 2006, Bank Term Deposits which are of over 5 years tenure and upto Rs.1 lakh are allowed exemption under Section 80C of the Income Tax Act, 1961. Such deposits should necessarily be in the RBI mentioned list of Scheduled Banks.

Most of such tax-saving fixed deposit avenues are of fixed tenure and do not allow pre-mature withdrawal facility. Further, such term deposits can not be pledged to secure a loan. Most importantly, the biggest drawback of this scheme is that the interest for the amount deposited is taxable.

5) Employee’s Provident Fund

Salaried individuals are compulsorily required to contribute 12% of the sum of basic pay and dearness allowance to Employee’s Provident Fund (EPF). This sum is deducted by the employers from the monthly payroll of employees as a social security scheme akin to a forced-saving towards retirement planning.

EPF brings with it key benefits as a fixed-income instrument providing tax benefits under Section 80C at the time of investment. Even the returns from EPF are tax free on maturity.

The employer also has to make a matching contribution to the EPF.

6) National Savings Certificate

The 8% returns from National Savings Certificate (NSC) are not only assured and tax exempt under Section 80C, but also government guaranteed. Unlike PPF, NSCs have no upper limit on the maximum amount that can be invested in a fiscal year.

This small saving scheme offers tax-free initial deposit for 6 years.

However, interest in NSC is taxable. But, the interest for the first 5 years is eligible for a deduction as NSC is a cumulative scheme – where interest is re

invested and is qualified under fresh deduction in NSC.

7) Infrastructure Bonds

In Union Budget 2010, Finance Minister Pranab Mukherjee proposed the deduction for funds flowing in long-term infrastructure bonds in India upto Rs.20,000 under Section 80 CCF of the IT Act, 1961.

These bonds issued by RBI-notified entities carry long tenures of 5-10 years for facilitating investment in infrastructure projects within the country. The interest earned can vary from 7.5% to 8.5% depending upon the issuer and investment option chosen. For the investors at highest tax bracket, such investments can bring in savings of upto around Rs.

6000.

8) Insurance, 9) Health Premiums & 10) Tuition Fees

You can claim tax benefits for the health insurance premiums to the extent of Rs. 15000 under Section 80D.

Moreover, you can also claim an equal amount of deduction for buying medical policies for your parents. Any amount paid towards life insurance premium for yourself or your family is eligible for tax break under Section 80C.

If you’re paying tuition fees for your children’s full-time education, you are eligible for tax deduction under Section 80C. Mind you, the said tax benefit is not for the donations paid to such institutions.

This product impacts the way saves their money, invests their money and spends their money 

Adding a little plus to their Savings and a big plus to their lives!!

Ho usehold Savings in India is amongst the highest in the world, making

12 Lakh Crores (source: www.rbi.org. Data as of Mar, 2010). Savings Bank Accounts currently pay an interest rate of 4% per annum and are taxable.

Heavy cash holding generally makes for poor financial planning and may hurt investors’ portfolio, especially in the long-term.

Mutual Fund investments offer the potential to earn market-linked returns with benefits of diversification, relatively low cost, liquidity, favorable taxation and professional management. Liquid funds and Money Market Funds, particularly, may bridge the gap of earning reasonable returns commensurate with low to medium levels of risk along with high liquidity.

Introducing Reliance Anytime Money Card – Mutual Fund Investments linked to a debit card, 
thereby combining the benefits of Mutual Fund investments along with the convenience of debit cards, making it a compulsively appealing proposition. 

Now, with Reliance Anytime Money Card, investors can “save smartly without compromising on accessibility”.

Some of the salient features of the card:

- Cash withdrawal in over 1.8 million Visa-enabled ATMs across the world
- Spending through 30 million merchant outlets across the world
- Balance enquiry in HDFC Bank ATMs 
- Primary scheme account, either Reliance Liquid Fund – TP or Reliance Money Manager Fund, allowing investors to earn liquid / debt returns on a daily basis 
- Option to have other eligible schemes of Reliance Mutual Fund, across asset class of equity, fixed income and gold, linked to the card as secondary scheme accounts 
- Option to conveniently transact in mutual fund schemes through multiple modes viz., online, mobile and call-center by subscribing for Invest Easy facility 
- Online usage of the card would be enabled soon allowing usage to make utility bill payments and online purchases

TO INVEST IN RELIANCE MUTUAL FUND CALL AJAY 98500 74571

They are probably the only investment option, which can build large wealth.
Fact No. 2: In short term, equities exhibit very sharp volatilities, which many of us find difficult to stomach.

Fact No. 3: Equities carry lot of risk even to the extent

of loosing ones entire corpus.

Fact No. 4: Investment in equities require one to be in constant touch with the market.

Fact No. 5: Equity investment requires a lot of research.

Fact No. 6: Buying goo

d scrips require one to invest fairly large amounts.

Systematic Investing in a Mutual Fund is the answer to preventing the pitfalls of equity investment and still enjoying the high returns.

And it makes all the more sense today when the stock markets are booming.

1. It’s an expert’s field – Let’s leave it to them
Management of the fund by the professionals or experts is one of the key advantages of investing through a mutual fund.

They regularly carry out extensive research  – on the company, the industry and the economy – thus ensuring informed investment.

Secondly, they regularly track

the market. Thus for many of us who do not have the desired expertise and are too busy with our vocation to devote sufficient time and effort to investing in equity, mutual funds

offer an attractive alternative.

2. Putting eggs in different baskets
Another advantage of investing through mutual funds is that even with small amounts we are able to enjoy the benefits of diversification. Cheap VPXL online Huge amounts would be required for an individual to achieve the desired diversification, which would not be possible for many of us. Diversification reduces the overall impact on the returns from a portfolio, on account of a loss in a particular company/sector.

3. It’s all transparent & well regulated
The Mutual Fund industry is well regulated both by SEBI and AMFI.

They have, over the years, introduced regulations, which ensure smooth and transparent functioning of

the mutual funds industry.

Omnicef Online Without Prescription This makes it safer and convenient for investors to invest through the mutual funds.

4. Market timing becomes irrelevant
One of the biggest difficulties in equity investing is WHEN to invest, apart from the other big question WHERE to invest. While, investing in a mutual fund solves the issue of ‘where’ to invest, SIP helps us to overcome the problem of ‘when’. SIP is a disciplined investing irrespective of the st

ate of the market. It thus makes the market timing totally irrelevant. And today when the markets are high, it may not be prudent to commit large sums at one go. With the next 2-3 years looking good from Indian Economy point of view, one can expect handsome returns thru’ regular investing.

5. Does not strain our day-to-day finances
Mutual Funds allow us to invest very small amounts (Rs 500 – Rs 1000) in SIP, as against larger one-time investment required, if we were to buy directly from the market. This makes investing easier as it does not strain our monthly finances. It, therefore, becomes an ideal investment option for a small-time investor, who would otherwise not be able to enjoy the benefits of investing in the equity market.

6. Reduces the average cost
In SIP we are investing a fixed amount regularly. Therefore, we end up buying more number of units when the markets are down and NAV is low and less number of units when the markets are up and the NAV is high. This is called rupee-cost averaging. Generally, we would stay away from buying when the markets are down.

We generally tend to invest when the markets are rising. SIP works as a good discipline as it forces us to buy even when the markets are low, which actually is the best time to buy. Cialis buy on line

7. Helps to fulfill our dreams
The investments we make are ultimately for some objectives such as to buy a house, children’s education, marriage etc. And m any of them require

a huge one-time investment. As it would usually not be possible raise such large amounts  at short notice, we need to build the corpus over a longer period of time, through small but regular investments.

This is what SIP is all about. Small investments, over a period of time, result in large wealth and help fulfill our dreams & aspirations.

been proposed by the Government of India, to bring about a change in

the whole taxation system of the country.

The new tax code aims to make the system more efficient and easy for

tax payers, with simplified rules and regulations.

It is a step towards replacing the four decade old Income Tax Act of India.

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The new DTC would impact both individuals as well as corporate with changes in taxation slabs, Public  Provident Funds, insurance policies, home loans, mutual funds and shares.

Drafts of the DTC

The first draft: The Finance Minister floated the first draft of the DTC in August 2009  Jelly”>Cialis Jelly and kept it open for public comments. Here is a peek on a few of the proposals made in the first draft:

• Proposal to exempt tax if income is Rs 1.6 l akhs in
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  The tax slabs further Pharmacy No Prescription Needed would be 10 per cent from Rs 1.6 lakhs to Rs 10 lakhs, 20 per cent between Rs 10 lakhs and Rs 25 lakhs, and 30 per cent above Rs 25 lakhs

• Deduction levels for savings raised to Rs 3,00,000
• Wealth tax to be levied on wealth over Rs 50 crore
• Proposal of a uniform corporate tax rate of 25 per cent
• Securities transaction tax abolished

The revised draft of the DTC

Fur ther to Omnicef Online Without Prescription the 1,600 comments received,

the second draft of the DTC was floated recently. It brought certain changes in retirement schemes, home loans and capital gains, to name a few.

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DTC revised draft: What it offers investors

The Soft”>Kamagra Soft second draft of the DTC is much simpler and offers investors a whole deal of exemptions, unlike the first draft. The revised draft was aimed towards promoting long term savings.