Everyone wants to get sky-high returns on their investments in the short term. However, the fact is that - higher the returns, higher is the risk and vice versa. There is no short to success in the investment world. Short term investment plans can give you higher returns but there is a lot of risks involved, while long-term investments come with low-risk and hence lower returns. The best way to decide whether you should consider a low-risk high return or high-risk low return investment options is to match your risk profile with the risk associated with the fund you are planning to invest in. Indians mostly like to invest in non-financial assets such as - gold and real estate. The other financial investment options include - stocks, mutual funds, provident funds, tax-saving funds, bank deposits, fixed deposits etc. Here are top 5 investment options that you can consider for saving tax this year: Mutual funds Mutual funds are of different types but here we are talking exclusively … [Read more...] about Top 5 investment options for tax saving in 2019
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One-off deferred tax gain supported bottom lines for much of India Inc during the September quarter. But that should not take away credit from those which managed to grow bottom lines on the strength of top line expansion. September quarter earnings season broadly turned out to be better than expected, which took BSE benchmark Sensex to its record high mark. Sensex scaled a fresh all-time high of 40,676 amid the ongoing earnings season. This was one of the better earnings seasons anytime in last three or four years, says Vivek Mavani, Independent Investment Adviser. “A number of companies have beaten Street expectations. I am evening out the earnings growth because of the tax adjustments which a lot of companies have done because we had the tax cuts in the middle of the quarter. A lot of companies adjusted that in the second quarter,” he said. For instance, despite a drop in top line, Tata Steel reported a 6 per cent increase in consolidated net for the quarter at Rs … [Read more...] about Stocks to watch: In times of tax gain, these 72 firms grew Q2 PAT on top line expansion
The Department for Promotion of Industry and Internal Trade and Central Board of Direct Taxation are likely to increase the exemption threshold for startups from the so-called Angel Tax. Under the new rules, companies whose share premium does not exceed Rs 25 crore will get immunity from the taxation. The earlier limit was Rs 10 crore. Angel tax is a term used to refer to the income tax payable on capital raised by unlisted companies via issue of shares where the share price is seen in excess of the fair market value of the shares sold. The exemptions will be based on the submission of audited financials and income tax returns of a startup, along with a self-certified declaration that the angel funds raised by the firm have and will not be used for inappropriate purchases. This is based on a submission made by LocalCircles and iSPIRT, people aware of the discussions told ET. The move will bring relief to a majority of startups that over the past few months have received notices from … [Read more...] about Angel tax exemption may be hiked to Rs 25 crore
A combination of ELSS or PPF with a term plan offers better coverage and returns, says Tinesh Bhasin.Rediff.comSingle premium life insurance policies have become popular since demonetisation was announced. All life insurance companies put together collected Rs 6,692 crore premium for individual single premium plans -- a growth of 507% compared to the same period last year. "In the initial days of demonetisation, life insurance companies were accepting old notes and issued policies. This was one key reason for the sudden spurt," according to Naval Goel, CEO and founder of Policyx.comSubhrajit Mukhopadhyay, chief actuary at Edelweiss Tokio Life, says that many insurance companies were also planning to withdraw old plans and launch new ones with lower interest rates. Individuals therefore rushed to lock-in their investments at a higher rate. "Banks were also flushed with money after demonetisation. Rather than keeping it idle in bank, investors could have used funds to purchase these … [Read more...] about Single premium plans for tax saving make no sense
NEW DELHI: Christopher Wood, Global Head of Equity Strategy at Jefferies, says Finance Minister Nirmala Sitharaman’s move to cut corporate tax was dramatic and came as a total surprise. Increasing India’s weightage in his Asia Pacific ex-Japan relative-return portfolio by 3 percentage points, Wood said Indian investors must celebrate the tax cuts now and leave worrywarts to worry about fiscal deterioration. India’s move to cut corporate tax came after Indonesia on September 3 announced plans to cut corporate tax rate in line with President Joko Widodohe (Jokowi)’s stated intent. The Indonesian central bank also relaxed loan-to-value rules on down payments for mortgages and auto loans this past Thursday. But Wood felt India’s move was a total surprise. “It shows the benefits of one political party dominating the legislature. It also highlights that the Modi government is finally responding in earnest to the extreme slowdown in growth in recent … [Read more...] about Christopher Wood says enjoy tax cut, leave worrywarts to worry about fisc!