Here are some key parameters that need evaluation before you select the right tax-saving fund.
Insurance companies are seeking a separate deduction limit of Rs 1 lakh for insurance premium payment under Section 80C of the Income Tax Act in the upcoming Union Budget to bring in more people under the ambit of insurance. The insurers also want reduction in the goods and services tax (GST) rate of 18 per cent currently applied on health insurance products to 5 per cent to make such products more affordable to common people. Finance Minister Nirmala Sitharaman will present the Union Budget for 2022-23 on February 1.
Investors must, however, be prepared for volatility in ELSS, cautions Sanjay Kumar Singh.
While the proposed new tax regime is optional for taxpayers, the finance minister has said the government eventually wants to do away with all exemptions with a lower tax-rate simplified structure.
Tax planning will help you pay less income tax. Something everyone wants. But smart tax planning will help you boost your portfolio.
Assets under management with the mutual fund industry jumped a whopping 41 per cent in fiscal 2021 to Rs 31.43 lakh crore, despite a minor 1 per cent decline in March, says a report. The 1 per cent decline in assets on monthly basis in March was because of net outflows from open-ended debt funds, even though open-ended equity funds for the first time in June 2020 recorded net inflows, according to the industry data collated by Crisil on Friday. Marc saw net outflows of Rs 29,745 crore, taking down the industry's asset base to Rs 31.43 lakh crore, down from the record high of Rs 31.64 lakh crore in February, registering a whopping 41 per cent growth in the fiscal 2021 over the previous fiscal, said Crisil, adding cumulative inflows equalled Rs 2.09 lakh crore.
The regulator has sought an increase in the investment limit for tax-saving equity mutual fund schemes to Rs 200,000 from the current Rs 150,000.
The assets under management of the 44-players mutual fund industry stood at Rs 24.55 lakh crore in May-end from Rs 23.93 lakh crore in April-end.
If one compares returns, the two public-sector ETFs have done better over the past year, but the ELSS category has done better over the trailing three and five years.
At gross level, MFs mobilised Rs 43.67 lakh crore (Rs 43.67 trillion) in August.
The pre-Budget proposals sent to the finance ministry aim to bring uniformity in tax treatment for investments in different financial sectors, mitigate hardship to retail taxpayers, and encourage participation in mutual funds.
Foreign portfolio investors, on the other hand, have been net sellers in the markethaving pulled out Rs 8,600 crore
'The decline was inevitable as one-year returns have been negative.'
In 2013-14, the funds witnessed outflow of Rs 2,293 crore
Days ahead of the Budget, Reserve Bank Governor Raghuram Rajan on Wednesday pitched for increasing the tax exemption limit on financial investments by individuals from Rs 1.5 lakh a year.
The government has also allowed individuals from the private sector to apply for the post
The tax filing season is here, and mutual funds have launched tax-saving products.
As long as the money has been 'paid or deposited in the previous year', an assessee should be eligible for tax relief, says Harsh Roongta.
Investors across age groups and risk appetite can invest in these schemes.
Tax planning should not be left for March. If you do so, you could face a severe cash crunch in that month, warns Sanjay Kumar Singh.
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
Plan these investments well rather than just doing random investments at the beginning of the year or rushing in at the end, advises Harshad Chetanwala, co-founder, MyWealthGrowth.
Invest early. Plan your taxes.
After the lock-in, ELSS investments should be en-cashed only when an important financial goal has arrived or there is a medical or other financial emergency in the family, says Anil Chopra -- Group CEO & Director, Bajaj Capital.
A combination of ELSS or PPF with a term plan offers better coverage and returns
NSC scores high on all three parameters that conservative investors are seeking -- safety, tax-adjusted returns and liquidity.
New retirement schemes from MFs offer Section 80C benefit but locks in your money for five years
When looking at fund returns, avoid looking at just the past 12 months' performance, says Sanjay Kumar Singh
Equity-linked savings scheme, PPF and Sukanya Samriddhi Yojana are recommended instruments.
Salil Dhawan explains why you must invest early in life.
Dear readers, we had asked you to send in your personal finance queries to be answered by Basis founder and CEO Hena Mehta. Here's the first batch of responses.
Few options that can help you plan taxes wisely.
Experts say the size of the fund shouldn't be a primary criterion for selection.
Retail participation in mutual funds from beyond the top 15 cities in the country has increased remarkably in the past 18 months.
Over 700,000 new investor accounts have been opened so far in FY15.
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