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Long Term Capital Gain Tax on Shares
Abhay is a married man looking to build a corpus for his life goals, mainly his retirement and his children’s education. He wants to invest in the stock market, mainly because it gives excellent returns over the long run. However, with the change in the tax laws on capital gains, he is confused about the tax impact. Abhay is not the only one. Many investors stay out of the stock market because they’re not sure about taxation rules. However, the rules are simple and easy to follow. Gains on the stock market are also subject to tax. This includes gains...more
Tax benefits from Health Insurance
Aarti was looking at different ways to save tax as tax season approached. At a seminar that her company conducted, she learned that she could get a tax benefit for investing in a health insurance policy for herself and her family. Like many others, she only know about Section 80C for investment-linked deductions. In fact, there are several other sections which Aarti can use to save tax and benefit her family. A health insurance policy is one of the most important tools in a person’s life arsenal. With the cost of quality medical treatment rising, having adequate health insurance can...more
HOW TO SAVE TAX ON YOUR CHILD’S EDUCATION
Chetan has a two-year-old daughter and it’s his dream to provide her high-quality education right from preschool till post-graduation. Both he and his wife work and are actively looking ways to ensure that they have enough saved up and invested for their daughter’s education. The rising cost of a good education is worrisome, and they have to make sure they build an adequate corpus that fully meets all education expenses. Chetan is not alone. Every parent wishes to give her child a good quality education. Education is one of the biggest expenses parents can incur, especially if their child wants...more
ELSS vs SIP
Vidhi was looking to make some investments in the stock market to diversify her portfolio and also save tax. Since she had no experience in picking the right stocks, she considered mutual funds, and had heard that equity-linked savings schemes (ELSS) offered tax benefits. However, she didn’t realize that there were two ways of investing in an ELSS fund, and got conflicting advice from financial advisors. One recommended that she invest a lump sum amount while the other said she should start a systematic investment plan (SIP) and invest small sums each month. This contrary advice left her confused about...more
How to Save Capital Gain Tax in India
Rajiv sold off a significant portion of his equity shares to fund his son’s wedding. As tax returns season approaches, Rajiv is looking out for ways to reduce his long-term capital gains tax liability. He did not suffer any long-term or short-term capital losses that he can set off against the long-term capital gain, which means he has to look for other avenues to save tax. But how can he do that? Like Rajiv, there are many others preoccupied with methods of saving tax in the last three months of the financial year. This guide explains the two types of...more
HOW TO SAVE FROM EQUITY GAINS
How to save from equity gains Rajiv sold off a significant portion of his equity shares to fund his son’s wedding. As tax returns season approaches, Rajiv is looking out for ways to reduce his long-term capital gains tax liability. He did not suffer any long-term or short-term capital losses that he can set off against the long-term capital gain, which means he has to look for other avenues to save tax. But how can he do that? Like Rajiv, there are many others preoccupied with methods of saving tax in the last three months of the financial year. This...more
FII vs DII – Can DIIs replace FIIs in India
Economies like India, which offer relatively higher growth than the developed economies, have gained popularity as attractive investment destinations for foreign institutional investors (FIIs). Investors are optimistic on India and sentiments are favorable following the government’s announcement of a series of reform measures. FII’s net investments in Indian equities and debt have grown at a tremendous pace, backed by expectations of an economic recovery, falling interest rates and improving earnings outlook. Money invested by foreign institutional investors (FII), is often called ‘hot money’ because they can be pulled out at any time, and they have been blamed for large and...more
Section 80G Deduction : Income Tax Deductions for Donations
The tax benefit of donating to charity Dhruv donated a small amount to a charity and was pleasantly surprised to find out he could claim a tax deduction on the donated amount. He wasn’t aware that donations to some charities entitled him to a tax discount. So Dhruv got a double benefit by donating to a worthy cause –it not only helped him do some good in society, he also got to pay less tax! He was the beneficiary of Section 80G of the Income Tax Act which reducedhis taxable income for making these donations. Section 80G deduction is available...more
What is Credit Rating & How to Improve Cibil Score
How to improve your credit rating There are many who have experienced the disappointment of a rejected credit card or loan application! Many know the feeling when in dire times, that personal loan wasn’t sanctioned because the ‘credit score’ was not good enough! In the past few years, as the term ‘credit score’ has attracted much attention and understanding, it is the first step to improving it. What is a credit score? In simple words, credit score is your rating with banks and financial institutions which is based on your record of repaying loans / credit card bills and your...more
What is Investment Banking & Know Investment Banks Client
All you need to know about investment banking in 6 easy points Investment banking is a specialized division of banking operations and its working is very different from regular banks. While regular banks take deposits from consumers and offer services like loans, etc., investment banks offer advisory services to corporate and other major clients to raise funds or buy/sell/trade in the market. So here’s all you need to know about investment banking! 1) What is investment banking? Investment banking is a division of banking that plays a major role in corporate deals, trades, raising funds, etc. Be it a merger...more
