Some mutual fund investors love to recycle their investments in Equity Linked Saving Scheme or ELSS to claim tax benefit under Section 80C of the Income Tax Act. The strategy is very simple: you recycle your old investment and claim tax deduction on it again after three years. However, the re-introduction of Long Term Capital Gains (LTCG) tax may queer the pitch for these investors, say some mutual fund advisors. “Fundamentally, this process is unhealthy for your investments but now after the introduction of LTCG, you will be at loss since you will pay tax on the redemption,” says Vishal Dhawan, Founder, Plan Ahead Wealth Advisors. The finance minister has proposed to tax long term capital gains above Rs 1 lakh on equity mutual funds at a flat 10 per cent without the indexation benefit. For late comers, investments in ELSS qualify for tax deductions of up to Rs 1.5 lakh under Section 80C. However, instead of making fresh investments, some investors pull out their old … [Read more...] about Does it make sense to recycle your ELSS investments after return of LTCG tax?
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BBPS allows you to pay electricity, telephone, water supply, gas and DTH bills. The Reserve Bank of India's recent approval to the National Payments Corporation of India to commercialise the Bharat Bill Payment System means you would soon be able to make payments to all utility providers, buy/service investment products, and even pay municipal corporations without having to log on to their respective Web sites. And it could be more cost effective as well. "The biller is likely to absorb the cost of such transactions. But if the customer opts for payment through an agent using cash or cheque, there will be a nominal fee, which will be based on the bill amount," says Sunil Kulkarni, joint managing director, Oxigen Services India, one of the participants in the BBPS.In the initial days, consumers can expect 2 TO 5 per cent discounts for using this service, say experts. As the cost of handling payments come down for billers, they may choose to pass the benefit to the consumer. As these … [Read more...] about Pay all bills, make investments from one place
Did you know that, under section 80 C, the government’s policy allows you tax deductions up to INR 1.5 lakh on your income? No? Shayan didn’t know this either. Until he met Pallavi.We all have been there; the groan that escapes you looking at the amount getting deducted from your salary, the money that could have been right in your pocket but now takes up a place in your salary slip under ‘income tax’. However, there’s a way you can save this money. Atleast, a healthy amount of it. All you need to do is invest early, wisely and keep a track of your portfolio. To find out exactly how to do that -- and avoid being as lost as Shayan -- tune in to Friday Finance, a web series brought to you by HT Brand Studio, in association with Aditya Birla Sun Life Mutual Fund and Aviva India. Watch the fourth episode, ‘Taxing Situation’, above! … [Read more...] about Don’t want to pay tax? You don’t have to