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?
Invest 5 lakhs in mutual fund
New Delhi: Leading stock exchange BSE on Friday said its mutual fund distribution platform has done 3.41 crore transactions worth Rs 1.17 lakh crore in April-November of the current financial year. The number of transactions in the period under review was 56 per cent higher as compared to the year-ago period. The platform, BSE StAR MF had done 2.19 crore transactions worth Rs 1.03 lakh crore during April-November 2018-19, the BSE said in a release. The inflows received during the period under review are pegged at Rs 48,947 crore. Besides, the BSE said the platform has registered 4.3 lakh new systematic investment plans in October-December, out of which 2.4 lakh were added in November 2019. "It is worthwhile to note that the BSE is aiming at touching a milestone of 50 lakh transactions/month and 10 lakh transactions/day very soon," Ganesh Ram, head of BSE StAR MF said. The exchange had launched BSE StAR MF app to help distributors and independent financial advisors to register … [Read more...] about BSE Star MF does 3.4 crore transactions worth Rs 1.17 lakh cr in FY20
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
Leading stock exchange BSE today said its mutual fund distribution platform has processed a record one crore transactions in the current fiscal, with a total value of over Rs 75,000 crore. The platform -- BSE Star MF -- has experienced a growth of over 500 per cent in the last two years, the exchange said in a statement. "Over last few years, BSE Star MF has changed the concept of mutual fund distribution in India and provided comfort to investors along with convenience, safety, speed and certainty in execution," BSE Managing Director and CEO Ashishkumar Chauhan said. "Our next focus will be to use the same highly compliant distribution network to distribute additional financial products such as insurance in near future," he added. BSE had processed a record, over 2.91 lakh transactions, in a day on Monday. Last month, it had executed more than 1 lakh transactions per day on six occasions out of 21 trading days. BSE Star MF, on an average, is adding more than one lakh new … [Read more...] about BSE Star MF processes 1 crore transactions worth Rs 75,000 crore