Tax deductions under sec 80DD

Tax deduction under Section 80DD (Deduction for medical expenses of the differently-abled)

The lack of required medical infrastructure and the increased medical expenses are a reality in India. This has been furthermore pronounced in the current pandemic. The cost of treatment for various illnesses is too high that it creates a huge burden on those who suffer from them or their caregivers. 

Understanding this plight and easing the financial stress it creates especially on the differently abled person, the Income Tax Act has introduced section 80DD that provides a deduction for the expenses incurred in the care of such persons.

Given below are the details of section 80DD of the Income Tax Act.

(more…)

save-tax

Save Tax

What is ELSS?

ELSS (Equity-linked Savings Scheme) is a special kind of mutual fund that helps you to save taxes under sec 80C of income tax. In this scheme, the funds are invested in equity, and because of which the investor has the potential to earn high returns compared to Fixed Deposit and Public Provident Fund. And returns on these are tax-free. However, the returns are only taxable if the earnings are above 1 lakh.

How much tax can I save?

It depends on the tax bracket an individual belongs to:

  1. If you are in the 5% tax bracket, you can save up to Rs 15,000 per year in taxes.
  2. If you belong to the 20% tax bracket, then you can save up to Rs 30,000 per year in taxes.
  3. If you are in the highest tax bracket of 30%, you could save up to Rs 45,000 per year in tax.

Lock-in Period

(more…)

How To Add i-SIP Biller In Axis Bank

Step 1: Go to Axis bank netbanking page and login with your credentials

Step 2: Click on the Pay Bills under “Payments”

Step 3: Click on Add Biller

Step 4: Select Mutual Fund, then BSE Limited

Step 5: Enter/Paste the URN and select the options as shown below

Congratulations! Your i-SIP biller request has been registered. You will hear from your bank within 2-3 business days.

How To Add i-SIP Biller In HDFC Bank

Step 1: Go to HDFC net banking page and login with your credentials

Step 2: Click on the Bill Pay & Recharge and then Continue

Step 3: Click on “Click here to add” under “Register New Biller”

Step 4: Select Mutual Fund, then BSE Limited

Step 5: Enter/Paste the URN and select the options as shown below

Congratulations! Your i-SIP biller request has been registered. You will hear from your bank within 2-3 business days.

How To Add i-SIP Biller In ICICI

Step 1: Go to ICICI netbanking page and login with your credentials

Step 2: Click on the Bill payments under “Payments & Transfer”

Step 3: Click on Register in “Electricity, Telecom and Other Utility Bills”

Step 4: Select Mutual Fund, then BSE ISIP and click on Register

Step 5: Enter/Paste the URN and select the options as shown below

Congratulations! Your i-SIP biller request has been registered. You will hear from your bank within 2-3 business days.

How To Add i-SIP Biller In SBI

Step 1: Go to SBI netbanking page and login with your credentials

Step 2: Click on the Bill payments Tab

Step 3: Click on Manage Biller

Step 4: Click On “Add” under “Manage Biller”

Step 5: Select Biller as BSE Limited

Step 6: Enter/Paste the URN and select the options as shown below

Congratulations! Your i-SIP biller request has been registered. You will hear from your bank within 2-3 business days.

Expectations from the Interim Budget 2019

Description :

Published on Feb 1, 2019

The video gives you a brief insight on what are the major expectations from the Interim Budget that is going to be presented on Feb 1st while we keep a close watch on the budget to come back with further insights on the presentation.
Take a look at the expectations:-
1)Key concerns around Bharat- Addressing the issues of the farmers.
2)More enhancement on the MSP Front.
3)Tax breaks can be given in different forms and sizes.
4)To reinstate medical allowance and transport allowance.
5) The limit for section 80C can be expected to go up beyond 1.5 lakh.

Speaker Info: Nirav Karkera is the Head of Research at Finity. He is known to look beyond just numbers and identify wealth-creation opportunities in the Indian capital markets. A former U.S. Oil & Gas, Chemicals credit analyst with a globally-renowned credit rating agency, he has a penchant for translating dynamic economics into wealth propositions. Nirav specialises in generating risk-optimal wealth for investors through strategic as well as tactical play with equity and fixed income assets. He is up, anytime, for an intellectual debate around anything that pertains to business, economics & wealth.

He can be reached at nirav@finity.in

Download android app: https://bit.ly/2OMEWvn

Download ios app: https://apple.co/2PVqN2C

Check out our Facebook Page: https://www.facebook.com/Finityw/

Check out our website: https://finity.in/

TRANSCRIPT:

So guys on February 1st we are going to view our interim budget being presented by Piyush Goyal since Arun Jaitley cannot be there to present the budget due to certain health ailments, and we expect the budget to bring out few key concerns of the economy, majorly revolving around Bharat as well as India.

  • Speaking about Bharat the key thing that we can expect from the budget is addressing the issues that the farmers and the participants in the agriculture industry are facing so obviously it’s not going to be a standard handout like a farm loan waiver, however we expect investment related subsidies like Rythu Bandhu to be introduced at a central level to actually help subsidise the investments made by farmers into certain agricultural technologies and other products related to farming, so that is one.
  • The other thing that we can expect is some more enhancement on the MSP front since the last budget boasted a lot on the MSP but the affects rather the positives have’nt been able to trickle down to the farmer level and this year’s extremely overwhelming produce and prices dipping further the economic situation of the farmers seemed to have deteriorated much more instead of being better after the MSP announcement, so these are the 2 keys things that we expect on the farm, agriculture and Bharat Front, you know.
  • At the same time when we are talking about India obviously many of us are talking about tax rate cut in the personal tax rates, but that does’nt seem very fiscally prudent at the moment, and having said that you know tax breaks can be given in different forms and sizes.
  • Another expectation as well would be that the finance ministry would reinstate medical allowance and transport allowance since the standard deduction allowed in the last budget seems to be quite insufficient given the current costs that one has to incur on both medical and travel fronts or if not that I feel that the limit for the standard deduction would atleast be enhanced to a higher limit, also well the last budget spoke about an extended limit for medical insurance premium paid for senior citizens with growing medical  inflation you know, we feel that it is a must have or an absolute need for everyone in India and also under several of the government’s healthcare, programs and initiatives it is important that the tax break expands under section 80D to a higher limit.
  • At the same time you know just to infuse the capital market participation in the country and to foster long term savings and investments you can actually expect the limit for section 80C to go up from 1.5 lakh, having said that lets say even if there is an additional 50000 offered under 80C and basic 1 crore people avail it, that would be almost Rs.50000 crore out of the tax net, so while the mathematics is still to be worked out I feel this is a good expectation we have from the budget.

so all in all the budget is going to present a lot many things, these are just a few of our expectations, so you know just watch out for the space we will be watching the budget closely and once the budget is done this is the very space wherein we’ll be sharing our views and opinions on the interim budget on how it is going to impact and change things in India, in our society and your investments as well.
So, guys, lets wait for Feb 1st and keep watching this space, meanwhile download the Finity App and keep looking for investments that will continue to grow irrespective of however the budget works out.
Happy Investing!

FAQs on Interim Budget 2019-2020

Description :

Published on Feb 1, 2019

Here are the answers to a few Frequently Asked Questions on the upcoming Interim Budget!
Addressing the following questions:-
1)What is an interim budget?
2)What is the difference between an interim budget and a vote on account?
3)When is an interim budget applicable?
4)How is interim budget different from the final budget?
5)Does interim budget 2019 hold any value?
For more queries on interim dividend drop your comments on the comment section below.

Speaker Info: Nirav Karkera is the Head of Research at Finity. He is known to look beyond just numbers and identify wealth-creation opportunities in the Indian capital markets. A former U.S. Oil & Gas, Chemicals credit analyst with a globally-renowned credit rating agency, he has a penchant for translating dynamic economics into wealth propositions. Nirav specialises in generating risk-optimal wealth for investors through strategic as well as tactical play with equity and fixed income assets. He is up, anytime, for an intellectual debate around anything that pertains to business, economics & wealth.

He can be reached at nirav@finity.in

Download android app: https://bit.ly/2OMEWvn

Download ios app: https://apple.co/2PVqN2C

Check out our Facebook Page: https://www.facebook.com/Finityw/

Check out our website: https://finity.in/

TRANSCRIPT:

Hi guys! So as the interim budget is closing by we have received a few queries and questions around the budget itself so we decided why not in the best interest of everyone share the same questions and our responses to it with all of you viewers out there

1. What is an interim budget?

Interim budget is the name itself suggests its the budget presented in an interim fashion it is not an actual full-fledged budget it is something being presented as a temporary solution, so this generally done during the time of the year where there is a general election close by like it is now, so our interim budget is not really a full-fledged budget but a mini version of it, it is generally. Anything presented in the interim budget cannot really be implemented for the whole next year, there will be a full-fledged budget presented by the next elected government.

2. What is the difference between an interim budget and a vote on account?                                                                                                               

 An Interim budget would be talking a lot about past expenses and past revenues, also the future expenses and revenues that the government expects at least for the next couple of months till the general Lok Sabha elections are conducted. A vote on account, on the other hand, has the first part intact it will talk about the past revenue and expenses but at the same time it will also focus majorly around the expenses that the government would be making and not so much around the sources of income or the revenues.

So that is the difference between in an interim budget and a vote on account so government generally during election years can choose to present one of these this year the finance ministry explicitly mentioned that it would be presenting an interim budget.

3. When is an interim budget applicable?

As I mentioned it is applicable when a government does not really have a full tenure to implement a budget like now majorly because of an upcoming election, like this year in 2019. So an interim budget is basically the budget which is in play and in force till the next government is elected.

4. How is interim budget different from the final budget?         

Final budget- it consists of a lot more than an interim budget, it talks about the past and the future years revenue and expense in detail.

However an Interim budget  due to the lack of a period in future it cannot really talk much about the sources of revenue in future, neither about the expenses that it expects to, the current government expects to incur over an entire year so it is somewhat an apprised version of a full budget, generally a full budget can include several important measures like certain tax changes, policy changes while the interim budget can also introduce a few policy changes, the election commission of India has certain guidelines to ensure that the interim budget is not presented in a way that unfairly influences the voting section of the society, so that is the basic difference between an interim and a full budget.

5. Does interim budget 2019 hold any value?                                       

This is quite a question that demands some opinion on a personal and subjective front, in our opinion all budgets do hold value and the interim budget would actually be indicative of what the current government is willing to do, having said it is not necessary that it does everything that it mentions in the interim budget but it actually explains the mindset and the framework with which the current government expects to run the economy if re-elected so that offers some more insight and perspective and apart from that, while it does not hold any significant value for the longer term it does have a deep impact on the sentimental and emotional fronts on the Indian population so ya by that measure it does have a certain degree of importance.

So these were the top 5 questions that came to us, if you have any more questions related to the budget, we would be more than happy to answer them, just drop your questions in the comment section and we will answer each one of them, so meanwhile keep watching this space once the interim budget is out we actually hope to come out with another video explaining of what we understood of the interim budget and how we expect it to impact the country, the economy, and your personal investments.
So meanwhile keep browsing through the Finity app for investment opportunities that would turn to gold irrespective of what this budget presents.
Happy Investing guys!

ELSS: Why wait for the year end scramble to save tax.

So the tax saving season has arrived. Here is the best solution for your tax saving woes which is ELSS!

Equity Linked Savings Scheme are one of the most popular tax saving investment options among other tax saving option under SEC 80C. You might be going through the last minute rush for tax saving around Jan-Feb each year. Most of the people get easily distracted by just looking at ‘tax saving’ tag on investments available in the market and invest in products which don’t add enough value.

(more…)

National Savings Certificate

Investments for Wealth Generation

What is a National Savings Certificate?

The National Savings Certificate (NSC) is a small-savings scheme backed by the Government of India. This instrument is popular for its ability to link tax benefits with assured returns.

This initiative provides a channel to build a corpus for retirement. The current interest rate is 8% and is compounded annually. This facility is provided at any post office with a minimum investment amount of Rs. 100.

Premature withdrawal is not available for this 5 year scheme. However, loans against your NSC savings is permissible. NSC is eligible for tax deductions up t0 Rs. 1.5lakh under Section 80(C) of the Income Tax Act.

Risk averse investors who want to remain invested for 5 years or more, looking for steady returns through lump sum investments.

  • Investors looking to build a corpus over a long period regardless of earning inflation beating returns.
  • Investors who are able to make regular small deposits.
  • Debt Mutual Funds 
  • Company deposits
  • 5 year Fixed Bank Deposits
  • 5 year Post-Office Time Deposit

Highlights

  • RiskThe scheme is risk-free.
  • ReturnsThe scheme currently offers an interest rate of 8% and the rates are revised every quarter.
  • TaxationThe invested amount receives tax deduction up to Rs.1.5 lakh as per Section 80(C).
  • Lock-in LimitationsHas a lock-in period of 5 years.
  • WithdrawalsWithdrawal is permissible on account of death of the NSC holder, forfeiture by a pledge or a court order.
  • Capital ProtectionIt is a Government scheme so the capital is highly safe and reliable.
  • Inflation ProtectionWhen inflation is above interest, the account earns no real returns.

Investment Goal

It is initiative by the Indian Government for the citizens to provide a regular monthly income flow during their retirement. The scheme receives tax benefits on deposit and yields assured returns..

Download Finity app to get more returns

Invest in Direct Mutual Funds with zero commissions and no fees

Overview

FeatureDescription
EligibilityThe account holder must be an Indian Resident.
Entry AgeNo age barriers.
Fee Structure (Account Opening Fee & Maintenance Charges)You can start an NSC account with just Rs. 100. (available denominations for certificates are Rs.100, Rs. 500, Rs.1000, Rs.5000 and Rs.10,000)
Investment
InterestThe current interest rate is 8% (compounded annually).
Tenure5 years.
Exit OptionPremature encashment is permissible on account of death of the NSC holder, forfeiture by a pledge or a court order.
Account Holding Categories

  • Sole /Joint Account

  • Minor through a guardian.

Nomination facilityThis provision is available.

Capital & Inflation Protection

Since this scheme is backed by the Indian Government, the capital is highly protected.

There is no inflation protection because the account earns no real returns when the inflation rate is more than the rate offered by the national savings certificate.

Guarantees

The interest rate currently is 8% (compounded annually) and is guaranteed. The government revises the rates quarterly according to the government- bond rates. Once the investor has made his deposit, the interest won’t change during the tenure.

Liquidity

Premature encashment of NSC is not allowed before maturity. However withdrawal is permissible under the following conditions:

  • Death of the account holder.
  • Forfeiture by a pledge
  • Through a court order

Also loans can be borrowed against the NSC savings.

Tax Implications

  • Under Section 80(C) of the Income Tax Act, the investment amount receives deductions up to Rs. 1.5 lakh per annum.
  • The interest earned from NSC is eligible for tax deduction under Section 80(C) provides it is reinvested .
  • However, the income on maturity is taxable if the interest accrued is not added with Rs.15 lakh deduction

Account Setup Information

How to open?

The account can be opened at any head or general post office and requires the following documents:

  • NSC application form (receivable at the post office).
  • Carry originals of ID proof during account opening for verification purpose.
  • Choose a nominee

You can buy the NSC via cash, cheque or a demand draft in favor of the postmaster from the respective post office you have decided to avail NSC. By providing an indemnity bond you an receive duplicate certificates of NSC in case of any damage or loss.

Online Access

Online facility is not yet available, nevertheless you can use the option of ebanking after opening the account

Key Takeaways

  • If you have obtained transfer rights, you can enash certificates at any post office.
  • Certificates are transferable across post offices.
  • For both purchase and payment, you can provide the power of attorney to another person.
  • The account receives tax deductions under Section 80(C) up to Rs.1.5 lakh.

Invest in Direct Mutual Funds to get better returns