NPS Taxation - Nirav Karkera

Decoding Taxation on NPS

Here are the Key points of what’s in this video:·

  •  An investor can withdraw 60% of the total corpus but up to 40% of Corpus withdrawn in a lump sum is exempt from tax.
  • Balance amount invested in Annuity is also fully exempt from tax.
  • Pension received out of investment in Annuity is treated as income and will be taxed appropriately.
Invest in Mutual funds online - Dipika Jaikishan

How to invest in a Mutual fund online?

As the newer generation is moving from manual transaction to online transaction, this video talks about the various advantages of investing online. It also helps in simplifying the process of investment in a fast, effective and efficient way. Mobile apps like Finity can be installed and steps are as easy as:

  • Register one time.
  • Complete your KYC(Know Your Customer).
  • Sync your bank account.
  • Select your mutual funds for investment.

Make wiser investments in Gold

Gold funds

“Gold has two significant shortcomings, being neither of much use nor procreative”
-Warren Buffett

One of the most prominent investors of our time, Warren Buffett is known for his advice on investments is telling people to trade in anything but “gold”. However, we Indians love gold and just cannot let it go. It would be hard to find a person who has not invested in gold in one form or another. There are those who buy gold jewelry for different occasions like weddings, festivals, etc., while others look to make a profit.
“Gold is not an investment at all!” said the Vanguard founder and former CEO, John Bogle in an interview with CNN. “Gold is speculation. It has absolutely no underlying intrinsic value,” said the American investor, who is known for promoting Mutual Funds. An investment that only recently became popular among the average investor for its low-cost and high earning schemes.
Did you know that you can invest in gold through Mutual Funds? This investment vehicle collects the money and invests in physical gold without the hassles of storage and low yield. There are two ways you can go about it. One is to invest Gold Exchange Traded Fund (ETF) and the other is to simply invest in Gold Funds. Let’s see how they differ from each other :


Gold ETF

Gold Fund

  • Investor trades in the

physical gold through an exchange.

  • A Mutual Fund scheme which invests on the Gold ETF and other related assets.
  • Can be purchased from the stock exchange and requires a Demat account.
  • Can be purchased in Mutual Funds without a Demat account.
  • Gold ETFs are priced transparently based on international gold prices.
  • Gold Funds invest in Gold ETFs and other related assets, their NAVs are dependent on gold prices as well as prices of other assets that funds hold.
  • Gold ETFs typically require a minimum investment amount of 1gm gold which is close to Rs 3,000 at current prices.
  • Gold Funds allow a minimum investment of Rs 1,000 (as monthly SIP).


If you were determined to purchase gold, do so with the better investment vehicle. Since Gold Funds are professionally managed, they are preferred over physical gold, even though it holds less liquidity. Using the Finity App, any person can trade in these funds with his specific appetite of risk. Explore More on Top Rated Gold Funds

So go for the real gain, not just for the gold!
Think Finity!

6 reasons that stop you from being rich

Gold or Mutual Funds?

As women, we love to show off our jewelry as they define our social status, lifestyle and earning capacity. Weddings, anniversaries or Akshaya Tritiya, we rush to get our favorite ornament made of gold. Why?
We hear our moms and grandmoms say, “Buy Gold, it would help when you are in need of money”. Meaning, traditionally Gold is not just a piece of jewelry but is considered as an investment.

Then why does the business magnate, Warren Buffett, does not invest in Gold?
He says: “It doesn’t do anything but sit there and look at you.”

They say investments in Mutual Funds fetch better returns. Do I choose Mutual Funds or Gold? Which one’s better?
Let me list down the differences between the two, that will help answer the above question and help you to make the right choice.

Investment in GoldInvestment in Mutual Funds
Gold is not affected by market conditions.
Mutual funds are affected by market conditions so there is potential to earn higher returns.
The process of investing gold and managing investments is an individual’s responsibility.
Mutual Funds are handled by Professional Fund Managers who perform research and guide your investments in Mutual Funds.
Fear of theft or loss of purity is more as Gold is a physical asset.
Mutual funds are invested in stocks, bonds, or Gold ETFs, they are electronic or online investments.
Diversification can happen only if one chooses to invest not just in Gold, but in silver, or other mining products.
Mutual funds provide the option of diversification as it allows investment in bonds, cash, or commodities like gold and other precious metals.
Value of Gold is more hence the amount you invest in Gold would naturally be high.
Initial Investment in Mutual Funds can be as small as Rs. 500 
Gold remains to have the same value unless someone buys it at a higher price.Investments in Mutual Funds earn high returns as time passes. Mutual Funds Providing >15% returns.
Gold incurs making charges and wastageMutual Funds have no such charges, in fact, investment in Direct Mutual Funds don’t even have commission charges.


Invest in your Child's Future

Make the right investment for your child’s future

“The cost of college education today is so high that many young people are giving up their dream of going to college, while many others are graduating deeply in debt”

— Bernie Sanders

Even though this quote is said in the context of education in the USA, the situation isn’t much different here in India. When we meet our old friends over a cup of tea or coffee, we cherish our school/college days. These nostalgic memories take us back to the good old days when it was much easier to dream, set our goals and achieve them with ease. The inexpensive lifestyle in those days gave us a lot of room to lead a carefree life.

Do you remember that schools use to collect a ‘humble’ fee of Rs 11,000 from a standard 12 student 15 years ago? But now the same education would typically cost about 2 lakh which is ten times more.

We at Finity tell our customers how the inflation in the education system rises in double-digits while your purchasing power climbs by just 6-8% each year. Simply put, it is tough for us to make ends meet.

The table below shows how expensive your child’s education would be (in a 5-year spread timeline) if education costs keep increasing at 12% every year. Just so that numbers are relatable and easier to understand, we have normalized the education costs for 5 years ago by computing them at the same rate:

Rising Costs of Education in India

You would have realized by now that as years pass the expenses would keep increasing, while your salary wouldn’t increase in the same proportion, unfortunately. Moreover, these forecasts of education costs don’t take costs of gizmos, gadgets, sports amenities and extra-curricular costs into consideration, which make education unaffordable even further.

According to HSBC Value of Education Survey 2018, there was an INR. 4.15 lakh shortfall between what parents contributed and what students needed for a complete education.

This is quite an eye-opener and reflects the under-preparation by parents for their children’s education. A major reason for such a discrepancy is the fact that parents do not fully understand education inflation and so, are unable to financially plan in an adequate manner.

Let us explore some investment options which are specifically focused on financially securing your child’s future:

Sukanya Samriddhi Account:

  • This investment can be made only in the name of a minor girl child and should be initiated before she turns 10 years of age.
  • Each girl child can have only one account and this can be opened for a maximum of two girl children.
  • The current rate of interest is 8.5% per annum which is tax-free.
  • Scheme qualifies for tax deduction under section 80C.
  • Minimum Investment amount: INR. 250, maximum investment amount: INR.1.5 Lakh in a financial year.

Children’s Fund

  • These funds have a lock-in period of 5 years or till the child attains the age of majority; whichever is earlier.
  • An investor can choose debt-oriented or equity-oriented schemes in the name of his/her minor child.
  • Minimum SIP amount: INR 500.

“The problem with Indian education is that education in itself is overrated while the need to financially plan for it is underrated”

Now that we’ve understood the need and benefits of long-term planning, don’t hesitate, make the smart choice and starts investing. Let your aspirations come alive.

Have you started saving for your child’s future?

savings for child's future

“An Investment in knowledge pays the best interest.”
–Benjamin Franklin

Designing and drafting your child’s education can be one of the major goals you will have as a parent. A father always wants his son or daughter to be more educated than him and hence would want to provide them with a quality education. But acquiring a quality education is becoming expensive from the past few years. To be able to provide your child with a bright future, it is necessary to start saving for your child’s education early.

Currently, an Engineering course costs anywhere between 6-10 lakhs in India, but ten years down the lane, it would cost 15-20 lakhs. It is said that there will be a time when global education brands may come to India and their fees will be very high. And obviously, you want your children to get the best of education.
So, here are some ways parents can save for their child’s education:

1. Sukanya Samriddhi Account for your daughter

This scheme was launched by the Prime Minister 4 years ago on 22 January 2015 as a part of the Beti Bachao, Beti Padhao campaign. The account can be opened anytime, by the parents or the guardian, between the birth of a girl child and the time she attains the age of 10 years. It currently provides an interest rate of 8.5%. This scheme encourages young parents to build a fund for future education and marriage expenses. The account can be opened at any authorized commercial banks or Indian Post Office. Only one account per child is allowed. A minimum of ₹250 must be deposited in the beginning thereafter any amount in multiples of ₹100 can be deposited and the maximum limit is ₹1,50,000. Read More on Sukanya Samriddhi Yojana

2. Tax-free bonds

Tax-free bonds are types of financial products which the government enterprises issue. Municipal bonds are one of its kind. They offer you a fixed interest rate and hence is a low-risk investment. They generally have a long-term maturity of typically ten years or more. The interest rate is currently 6.5%.

3. Bank Deposits

  • Savings Account- A savings account can be opened at a retail bank that provides interest of 3-4%. Check: Savings Account vs Liquid Funds
  • Fixed deposit account – A fixed deposit (FD) is a financial product provided by banks which gives investors a higher rate of interest than a regular savings account. Generally, the rate of interest ranges between 5-8%. Explore: What are Fixed Deposits?
  • Recurring deposit Account – This is a kind of Time Deposit provided by banks in India which help people with regular incomes to deposit a fixed amount every month into their account and earn interest at the rate applicable to FDs. Read More: Bank Recurring Deposits

We all want our children to have a bright future. Then why settle at 6.5-8.5% returns when you can earn returns between 12-16% or more and save better for your child’s future? Yes with Finity you can invest in Mutual Funds using the option called ‘Save for a goal’ under which you can save for your “Child’s education” which invests your savings based on your requirements.

Requirements Finity

So, if you want quality education for your children, you have to spend more. And to be able to spend more we should have surplus funds to finance the educational needs rather than sacrificing other requirements. So, don’t take a cut on your returns, instead invest in Mutual Funds and save a large corpus for your child’s future.

Invest Now..Plan Ahead with Finity!

Finity Weekly Update (Issue #20): India & Mr. Market fight back and more..

“As history has repeatedly proven, one trade tariff begets another, then another – until you’ve got a full-blown trade war”-Mark McKinnon

Early this week the Indian government decided to withdraw the ‘Most Favoured Nation’ status given to Pakistan with a view to facilitate robust and economically favourable trade between the nations. This status was revoked in light of Pakistan’s alleged support to terrorism and infiltration activities against India.

Also, condemning Pakistan’s support to such national threats, the Indian government imposed an import duty of 200%. This essentially implies that anyone buying goods from Pakistan into India would have to pay 200% of the product’s value as import tax. This has effectively result in a steep drop in imports from Pakistan and consequently withdraws meaningful economic support the country received in form of revenues.

Is this economically feasible for India?

Pretty much, yes. A HBL article stated India imports ~$500 million worth of goods every year from Pakistan while India exports goods worth ~$2 billion to Pakistan. This reflects the fact that India makes a net revenue from this bilateral trade that is almost 3x the value of what is paid to Pakistan. (more…)

Choose from various types of Bank Accounts

Bank account

“Do not save what is left after spending; instead spend what is left after saving.”
Warren Buffett

If you have to maximize your returns from a bank, manage money and minimize fees then it is wise to put money into the best account and use the right tools for spending and savings. So, here’s a list of different types of bank accounts which will help you in choosing the best one that fits your needs and circumstances.

1. Savings Bank Account

A Savings Account is a deposit account facility provided by the bank wherein you can deposit your savings. Through banking, you can save money easily and offers facilities to make optimum use of cash. The interest rate provided by the savings bank account is anywhere between 3-4%. Read More: All about Saving’s Bank Account


  • Instead of keeping your money in the checking account, it is more beneficial if you keep your unnecessary funds in a savings account where your money can grow.
  • Liquidity of the savings account and one can withdraw cash during banking hours.
  • Easy and quick access to funds in case of an emergency.


  • When there is inflation the account earns no real returns.
  • Balance, including interests in an account above Rs 1 lakh is exposed to the risk of a bank folding up.
  • Also, it doesn’t have any tax advantages and is taxable under the head ‘Income from other sources.

Mutual Funds can be the best option to save your income from inflation. Mutual Funds is an investment vehicle that pools money from several investors and invests that money to buy various securities in the market such as stocks, bonds, short-term debt etc. Mutual Funds provide returns between 9-15% or more, which is way more than Savings Bank Account and helps you to face inflation. Read More: Top Mutual Funds that have provide >15% returns.

2. Current Account

The firm, companies, and businessmen who generally have large and regular transactions use current accounts. The current account includes Deposits, Withdrawals, and Contra Transactions. The current account is also called a Demand Deposit Account.


  • A current account is meant for daily transactions. And can handle large volumes of Receipts/Payments.
  • Overdraw Facility – This facility is provided with a current account when an account holder draws more money than what the account holds.
  • A current account is a zero-account (you don’t have to maintain a minimum balance for it.) is generally associated with huge transactions on a regular basis.
  • Direct payment to creditors by issuing of Cheques, Pay- orders, or demand drafts.
    You can do unlimited transactions and withdrawals.


  • Minimum balance in maintaining a current account, which is Rs.25,000 is much higher as compared to a savings account.
  • Because of the fluidity that these accounts offer, they don’t earn any interest.
  • Limit on the amount of money that can be withdrawn in a day.

Invest your money and do not earn returns? Then why choose Current Account when you can invest the same money Rs.25,000 and receive interest of 12-15% on your money.
You can invest as low as Rs. 500 a month and start a SIP(Systematic Investment Plan) with Mutual Funds. Explore: SIPs in Mutual Funds
On Finity you can withdraw your Funds anytime. Hence it provides higher liquidity and you control on your money anytime.

3. Cash Credit Account

A borrower can withdraw money from a bank even if he doesn’t have a credit balance but the borrowing limit is fixed by commercial banks. This is an important source for business to raise its short-term finance.
As this facility is bound by a limit specified by bank i.e. the borrowing it is determined based on the drawing power of the borrower.


  • The flexibility of deposit and withdrawal
  • Cash credits are easily arranged at a short notice by bankers.
  • Interest tax is deductible hence reducing the overall tax burden.
  • Interest only on the amount utilized- as the lender charges interest on the amount withdrawn and not on the sanctioned amount.


  • Cash Credits cannot be used for long term purposes as it is given for a maximum period of 12 months and it has to be renewed when it gets expired.
  • More compliance and checks- As the borrower is under the obligation that he must
  • Present the quarterly/ semi-annually reports with the bank.


  • Finity provides Mutual Funds that are based on your financial goals, investment horizon, and risk appetite. So if your financial goals are for long term (>5 years) you can easily invest in Equity Mutual Funds.
  • To invest in Mutual Funds on Finity all you need to do is complete the paperless KYC (Know Your Customer) process, which hardly takes 5 mins, and you are all set to start your investment journey.

So hope this article gave you a fair idea of all the traditional Bank Accounts and how Mutual Funds are a better option than them. And Finity is India’s most trusted app for Direct Plan Mutual Funds. It gives you access to a wide range of tailor-made mutual funds that suit your financial position and all this for No Commission and No Fees.

Hurry, Start investing today on Finity!

FAQ on NPS - Nirav Karkera

Top Questions on National Pension Scheme

  • With NPS you can save up to INR.1,50,000 under 80C and once it gets exhausted you can save additional tax of INR.50,000 under 80CCD.
  • Every NPS subscriber is issued with a card having a 12-digit unique number called Permanent Retirement Account Number or PRAN.
  • If you do not contribute the minimum amount, your account will be frozen. You can unfreeze the account by reaching out to the POP and pay the minimum required amount and a penalty of Rs 100
  • The government will not contribute to your NPS account.
  • if the subscriber dies before the age of 60,  then the entire accumulated wealth will be payable to the nominee or legal heir (in absence of nominee). This amount will be tax-free at the hands of the nominee/heir.
  • Annuity income will be added to current income and taxed per existing personal tax brackets.
  • There is no investment return guarantee. Returns in NPS are market-based. The benefits will entirely depend upon the amounts contributed and the investment growth up to the point of exit from NPS. It is also linked to asset allocation you choose.

5 Reasons people should NOT opt out of Term Insurance

Term insurance

Do you know that there are so many different kinds of Life Insurance? You have your Unit linked insurance plan (ULIP) which gives you insurance along with an investment opportunity. There are these very famous endowment plans that promise insurance along with savings. And many more like Money back, Child’s Plan, Retirement Plans, etc. Term insurance, also known as “pure risk cover” is one such variant of Life insurance policy where the dependents get a sum assured by the insurer, redeemable on the death of the policyholder during the tenure of the policy. It is quite simple and extremely valuable. However, people tend to perceive it as a costly expense compared to other insurance plans, as there are no returns. Here are 5 reasons why people opt out of term insurance and shouldn’t do so:

#1: I don’t get my money back/ Give my money back!

Insurance is bought for all the wrong reasons like greed, taxes, fear, etc but the only real reason to buy insurance is security. Put an endowment plan under the microscope and see it serves the purpose for which you pay the premium. Can you justify it? No, because it is a product that dances around security instead of actually providing it. Term insurance is very simple in terms of providing absolute security. You pay a price to ensure your dependents of any troubles after you die. It is not a tool of investment, but a guarantee to receive a fixed amount if something happened to you. If you are hungry for returns the most ideal option is an investment in Mutual Funds. But term insurance will return a fixed lump sum in the event of your death.

# 2: It’s very expensive!

When you check on the amount a person normally pays for an insurance policy compared against the average term insurance premium will show you the truth. Term insurance is lower in terms of premium as compared to endowment plans and Unit-linked plans. To many people, it seems like a costly affair, but what you must remember is the pot of gold in the end instead of looking solely at the current costs to bear.

# 3: Other schemes have better benefits!

The term insurance simply acts as a financial safeguard for the family, it is affordable, receives tax deduction under Section 80C and the best of all is the value over cost. The premium you pay to maintain the policy adds up to peanuts compared to the real value of the policy. A popular diversion which leads to losing the essential aim of insurance is the fancy add-ons that other schemes provide. Don’t mix your investment with your insurance!

# 4: I have more important things!

People often opt out of paying their term insurance because they find it plausible to spend it on things like education, marriage, medical bills, etc. But you just have to ask yourself what happens when you die? Who will take care of it all? It doesn’t mean you shouldn’t save up for such things, but in order to avoid unloading these burdens on your loved ones, it is recommended to take term insurance.

# 5: It’s a luxury, not a need!

There is a false impression going around that term insurance is a luxury and it is not a necessity for everyone. You spend time and money every single day to increase their security in terms of health, financials, etc. So it seems fitting to protect the ones you love from any troubles when you’re not around. It is for everyone who wants to keep their dependents safe.

#EXTRA: I haven’t heard of it!

Why do you never hear of advertisements selling term insurance? Think of it this way. You are offered two different cakes. One is a colorful confetti cake with sprinkles and buttercream which is a real treat to your eyes; on the other end, you have a simple chocolate cake with a humble glaze. The confetti cakes seem to have a lot to offer but when you bite into it you find it is just a simple sponge with a whole mess of toppings and nothing special. While the chocolate cake is rich in quality.
ReturnsSource: Unsplash

However, term insurance is like the chocolate cake, it is pure to its purpose and nothing more. There are no fancy toppings to it like other schemes. While your endowment plans are like the confetti cake. The fancy things will have you pay more for nothing, while the term insurance delivers as promised.

Ignorance is never bliss in our world. It is always good to understand what you want before you lock into any insurance scheme, verify the big picture of every option you have. Use an app like Finity which helps you set up term insurance.

Finity app

Finity app

Finity app

Finity app

Be sure before you insure!