How to plan tax investments at different stages of your career

Before you buy an investment product, ensure that it’s in line with your financial needs and stage of life. We tell you how to save taxes without losing sight of the big picture

What’s the difference between tax exemption, tax deduction and tax rebate?

• While calculating tax liability, exempt incomes are the first components that get reduced from your salary or other income
• You can claim a deduction by making investments in specified products or by incurring certain expenses under different income tax sections

Common myths people fall for when making tax-saving investments

• When it comes to investing, people often follow the herd and end up buying products not ideal for them. Four experts bust the myths people fall for
• The most common mistake that investors commit is to invest in tax-saving instruments only towards the end of the financial year

With EPF and a home loan, you may not need to worry about 80C basket

• Under Section 80C, you can claim a deduction of ₹1.5 lakh from your total income, thereby bringing down your tax liability
•  Stamp duty and registration charges are eligible for deduction under 80C

Look beyond 80C deductions to reduce your tax liability

• There are quite a few products and expenses that do not fall into the 80C basket of deductions but can fit into your financial plan and also get you additional tax benefit
• Health insurance premiums, and interest paid on home and education loans can get you extra tax benefit

How much tax do you pay on your bond investments?

• Take a look at the applicable taxation before investing
• Some types of bonds offer taxation benefits, and some have coupon rates higher than fixed deposit rates

Instead of taking more risk, increase savings

• In the pursuit of reaching targeted amount, don’t take undue risk
• The asset class allocation needs to be spread out i.e. exposure to mid-caps and small-caps

Rupee trades higher against US dollar

• Other Asian currencies also traded higher against US dollar
• But so far this year, rupee has declined nearly 2% against the US dollar

Will it help to pause your SIP in a volatile market?

• To create long-term wealth, stay the course and work towards your goals
• Investing at levels closer to the market peak might mean that you will have to remain invested in the market for longer than expected to earn the return you want

Unlike a Will, a gift deed requires to be registered as per applicable rules

• A Will does not require to be stamped or registered. A gift requires to be stamped as per applicable stamp laws
• If it is a gift of immoveable property, it would have to be registered under the Indian Registration Act

Planning your life and goals go hand in hand

• Niranjan Borse and his family are proactive towards achieving their goals
• It’s a myth that your goals will take care of themselves. You have to be proactive to achieve all your goals

Insurance products can be replicated, but hard to build distribution network

• It’s important for companies to be balanced, or customers will be sold products that may not be suitable to them, says Tripathy
• Tripathy underlines the importance of having a balanced product portfolio and robust distribution network

Property sales show slight improvement in Dec quarter

• The number of unsold units remains high despite fewer project launches and that’s a matter of concern
• According to a PropTiger report, Pune witnessed an increase of 59% in sales during the December quarter FY19 compared to the same quarter in FY18

Salary for services rendered in India is taxable in India

• Salary income for the period services are rendered in India is taxable in India, irrespective of residential status
• Under the exchange control law, an NRO account may be held jointly with residents on ‘former or survivor’ basis

Is this the right time to invest in the small-cap segment?

• Edelweiss Small Cap Fund offers an added STeP feature that enables investors to benefit from any correction
•  The segment has the potential to outperform large-caps, mid-caps but it also sees the deepest cuts when economic and market conditions turn unfavourable

ITI Growth Opportunities Fund, Chetan Maini invest in EV startup RevOS

• RevOS provides battery management for two- and three-wheeler electric vehicles, an app for navigation, and an anti-theft lock
• RevOS was founded by Mohit Ranjan and Jyotiranjan Harichandran in 2017

Gilts gain as RBI flags higher core inflation

•  Official figures last week showed core CPI inflation increased to 5.73% in December
• Balancing inflation and growth under a flexible inflation-targeting framework needed careful analysis of each category of data, RBI governor Shaktikanta Das 

HDFC Bank: No surprises as bad loan metrics continue to shine

•  The private sector lender reported a 20% year-on-year growth in net profit to ₹5,585.85 crore for the quarter ended 31 December.
• Gross non-performing assets for the December quarter were 1.38% of its loan book, slightly higher than 1.29% a year earlier.

Top health insurance plans for you

• Here is a comparison of top health insurance plans for different sum assured and across different age groups
• Only the A-rated health insurance plans have been shown here

Women bought 32% of life insurance policies in 2017-18, shows Irdai data

• Participation of women in the Indian workforce declined to 27.21% in 2017 from the peak of 36.78% in 2005, says ILO data
• The total number of individual life insurance policies issued in 2017-18 was 28.2 million, of which about 9 million were bought by women and 19.1 million by men

Save for old age, not for tax benefits

• If you are looking to invest in NPS just to save taxes, financial planners advise against it.
• However, if you want to consider NPS in your investment portfolio, here is what you should know

Opinion | Is an insurtech revolution coming our way?

Insurtech has already helped improve ‘digital distribution’ and ‘customer experience’

How food ordering apps are eating into millennials’ income

• Overspending on food can put a significant dent in your finances over a period of time
• Millennials are eating out or ordering food more frequently compared to Gen Xers, who are now in their late 30s and 40s, and Baby Boomers, who are of retirement age

NPS can help you save ₹15,600 extra in taxes

• NPS, in addition to qualifying for a tax deduction of ₹1.5 lakh under Section 80C, qualifies for an extra deduction of ₹50,000
• NPS is a defined contribution pension plan that requires annual contributions till 60 years of age

What a car loan costs you

• Do your homework and get rates from more than one lender before taking a car loan.
• Use this information to bargain further and make a smart choice

Insurers can load premiums due to high BMI

• Before you apply with a particular insurer, consult the insurer’s representative or an advisor about their usual rating practices for BMI
• The right time to buy health insurance is when you are healthy. Insurers are reluctant to issue a cover to people with adverse health history