How mutual funds work to make profits for you? Mutual funds today are one of the most successful and popular investment vehicles to grow your money. However, only a few are truly aware about how a mutual fund makes money for the investors. How do mutual funds work? In simple words, a mutual fund is a collective fund where individuals of the same mind pool in money to invest in a chosen asset class/es. This gives you the ability to invest in an asset class which you could probably not…
What is Form 15g and Who is Eligible for Filing Form 15g Mohan Kulkarni took VRS recently after spending a lifetime in a pharmaceutical company at the age of 55. Being in the accounts departments, he had a fairly good idea on how to make the right investments and ensure that he had enough for a comfortable retired life. He had planned his investments in such a manner as to optimise returns and ensure that he did not have to pay income tax. He had put his savings in mutual…
It is income tax filing season and Kunal needs to know what his income tax contribution, for the year, is. His friend suggests downloading Form 26AS from the Indian Income Tax website. Kunal is confused about how this form is different from the one he files each year. Let us explain it to him. This form should ideally be verified before Kunal files his annual returns. It is considered a consolidated tax statement for any individual with a Permanent Account Number (PAN). These are 5 main things Kunal will get…
Sia was excited, it had been 6 months into her first job and she finally had a chance to make her own investments. She also knew that she had to keep her salary slips ready for filing her income tax return. One day she got a call from her C.A. asking about a ‘Form-16’, she had no idea what it was. Let’s explain to Sia what this form is. Form-16 is essentially an income tax form, now Sia might think it’s the same as a salary slip; it’s not. Under…
Manmeet Bajwa worked at a firm that demanded more hours than she was willing to devote. Tired of the monotony of her corporate life, Manmeet decided to be her own boss. Having saved enough money, and armed with a smart business plan, Manmeet set out to live her dream of becoming a business owner. She now went from being a salaried employee to a self-employed individual and so she had to prepare for the tax responsibilities as a self-employed tax filer. Here are the tricks she found helpful while filing…
Kunal Mandke is a professional working with MDK Corp. The company has agreed to pay him ₹50,000/- in exchange for his services. MDK Corp deducts a tax of ₹5,000/- from his salary and Kunal receives a net payment of ₹45,000/-. The ₹5000/- deduction is directly deposited by MDK Corp to the credit to the government. But why can’t Kunal himself credit the ₹5000 to the government? For this, we need to understand how TDS works. What is TDS? Tax Deducted at Source, known commonly as TDS refers to the system…
Kunal Mandke is a professional working with MDK Corp. The company has agreed to pay him ₹50,000/- in exchange for his services. MDK Corp deducts a tax of ₹5,000/- from his salary and Kunal receives a net payment of ₹45,000/-. The ₹5000/- deduction is directly deposited by MDK Corp to the credit to the government. But why can’t Kunal himself credit the ₹5000 to the government? For this, we need to understand how TDS works. What is TDS? Tax Deducted at Source, known commonly as TDS refers to the system…
Tax Season is around the corner and Mr. Sharma is looking to maximise saving his tax payments. The Government of India offers relief from tax payments on certain amounts and certain investments, so that Mr. Sharma can create wealth over a period of time. He can choose from a wide range of various tax-free instruments up to a specified limit. Most of these tax-saving instruments are typically divided into three categories viz. EEE, EET and ETE investments, all of which work towards two goals; growing the capital and saving taxes.…
One of the most important life goals everyone has is the creation of wealth. This is only possible when one is young and employed. Post retirement, one has to typically live on the savings put away during the years of employment. These savings could be in the form of provident fund, pension and other investments, be it share market investments, fixed deposits, recurring deposits and so on. One such investment vehicle, which is also a great tax saver, is the National Pension Scheme. But what exactly is it? What is…
The importance of buying health insurance cannot be understated. Your health insurance bails you out during medical emergencies. With a small annual premium, you end up saving lakhs of rupees that you would otherwise pay on hospitalization, surgeries, and medical reports and so on, if you did not have health insurance. Not only can you breathe a sigh of relief due to the insurance cover, you can also avail various concessions and tax benefits from investing in health insurance policies. Let’s find out how you can save on health insurance.…