Stock Mutual Fund Donation Procedures & Loi Form - Holy Name: Fill & Download for Free

Broadly, there are three ways to ensure that you pay optimal tax; claiming tax free income, incidental actions that bring tax benefits and finally investing/saving for tax benefits.Let us explore them in detail;Claiming tax free income:All you need to do here is submit documents to the HR and relax. Your tax outflow will automatically get managed. These are applicable for salary components that are tax free in nature. Here is the list of items:In case you live in a rented apartment and want to make your HRA tax free: Submit 12 months rental receipt from ownerFor making medical allowance tax free you need to submit medical bills for the yearTo make leave travel allowance (LTA) tax free you need to submit travel proofs For conveyance allowance to be made tax free you need to do nothing to prove. Attending work is good enough we guess!Incidental actions that bring tax benefitsHere you get benefits for certain positive actions you take in your financial life. Here again all you need to do is to submit proofs to claim tax benefits for those actions.Interest payment on your home loan- this qualifies under section 24Principal re-payment on your home loan- this qualifies under section 80C tax rebateInsurance premium receipts paid for the year- this qualifies for section 80C tax rebateTuition fee receipt paid for your children if any- this qualifies for section 80C tax rebateYour side contribution to employee provident fund (no proof to be submitted as the HR already has the records) – this qualifies for section 80C tax rebateMediclaim premium receipt- this qualifies for section 80D tax rebateParents mediclaim premium receipt- this qualifies for section 80D tax rebate Education loan statement (mentioning the interest component)- this qualifies for section 80E tax rebateInvesting/saving for tax benefitsHere is where you need to plan and act for managing your tax outgo. Broadly here you deal with the provisions of Sec 80C/Sec 80 CCC, 80G and 80 CCG. You are primarily expected to invest in any of the products listed in these sections and in return you get the benefit of paying lesser tax. But there is an upper limit to this. For both section 80C and section 80CCC the upper limit collectively is Rs 1,00,000.Section 80C/ 80CCC:In case the total amount claimed under 80C from the items that are listed in the above incidental category is totaling to Rs 1,00,000 then just chill. You have nothing much to do under these sections. But if total is less than Rs 1,00,000 then you can make some investments to claim tax benefits.The products that qualify for the same are as follows:Public provident fundBank fixed deposits (the 5 yr thing)Mutual fund-ELSSULIPsNational Savings Certificate (NSC) Pension PlanNaturally your next question will be which product to choose. Here is our recommendation:On closely looking at these products you will notice that all of them are long-term in nature. As it is a long-term investment, we need to take into consideration the negative impact of inflation while deciding on the product. Inflation robs the value of money as time passes. What a Rs 500 note can buy today it cannot buy after say, 5 years. Probably you need to have a Rs 1000 note! Hence whenever you make investments that are long-term in nature, the returns you earn necessarily should beat inflation.Only growth assets have the power to beat inflation in the long run. Equities, equity mutual funds, gold and real estate have the power to beat inflation in the long run. Though they are riskier in nature, in the long run they deliver the best value. Income assets like fixed deposits, bonds, traditional investment-cum insurance policies, etc give returns less than inflation.Arranging the section 80C products as per the asset class:Income assetsPublic provident fundBank fixed depositsNational Savings Certificate (NSC)Growth assetsULIPsPension PlanMutual fund-ELSSIt is now quite obvious that young and middle aged people should look at growth assets only. ELSS wins hands down over ULIPs since it has far lower costs and charges loaded onto it. This makes it one of the best tax saving instruments available. We will briefly look into it:What is ELSS?An equity linked savings scheme (ELSS) is very similar to a diversified fund - it invests in the broad Indian equity market. It has no stated preference for sectors or themes – it chooses stocks based on the fund managers research and hypotheses. An ELSS has a three-year lock-in period.Heres how to choose (the rule of three):Avoid funds that have less than three years of track recordAvoid funds that have an asset base of less than Rs.300 crores. You can get this figure in the fund fact-sheet (available for download at the funds site)Rank all ELSS in decreasing order of three-year returns. Choose one of the top three. Be aware, past performance may not be repeated in futureSection 80GIf you donate an amount to any recognized charity or relief fund, a part of the donation can be claimed as a tax rebate. You need to submit the certificate of donation to HR.A few organizations like the Prime Ministers Disaster Fund enjoy 100% deduction – which means the entire donation paid is deductible from your salary. However, most of the other donations including several religious organizations enjoy only a 50% deduction. If you pay Rs. 1,000 to such an organization, you can claim Rs. 500 as benefit.Section 80CCGThis is the newly announced rebate from the government called Rajiv Gandhi Equity Savings Scheme (RGESS). Features areOne can invest a maximum of Rs 50,000Tax rebate of 50%Only for individuals whose annual income is less than 10 lacsInvesting in stocks for the first timeInvesting in BSE 100, CNX 100, PSUs, certain mutual funds and ETFs (list) Lock in of 3 year but can trade after 1 yearThere is not much clarity in term of execution and procedure. May be you can give it a miss this year or wait for few more weeks to get complete clarity.Recap- here is the check list of documents you need to submit to your HRIn case you live in a rented apartment: 12 months rental receipt from ownerIn case you have home loan: Statement of housing loan with details of principal and Interest componentsMedical bills for the year if anyTuition fee receipt paid for your children if anyFlight & train tickets for LTA claimsInsurance premium receipts paid for the yearNSC purchased in the yearMutual fund (ELSS) statementMediclaim premium receiptParents mediclaim premium receiptEducation loan statement (mentioning the interest component)Bank Fixed deposit receiptsBe aware about the current crop of tax free bonds: Firstly it has nothing to do with tax rebate of Sec 80 CCF. Section 80 CCF (Rs 20,000) has been scrapped this year and you will not get any tax rebate on infrastructure bonds like the ones you got last year. Hence do not fall for this trap.source: http://www.newsanalysis.fintotal.com/Tax-Planning-for-Salaried-Employees-A-Last-Minute-Guide/5908

WANT TO SAVE TAX?WANT TO MAKE MONEY?WANT TO RETIRE LIKE A BOSS AND BE SUPER RICH AT THE AGE OF 60?Remember a penny saved is a penny earned. Also earning is hard. Real hard.This article is for people who love every bit of their hard- earned money but are grappling with the dilemma on whether to deal with this hassle or just not fall into the trap.Well we all are very inquisitive about the whereabouts of our money. So why let it go when we can easily save it by following a simple procedure.Here's something that I've examined & evaluated over a period of time and hope it would help you in saving a huge chunk of your money in future.Just go through the entire article thoroughly and trust me you don't need to worry about saving tax after that.As an example I'm taking:Total base pay as Rs. 5,50,000Basic salary as Rs.2,20,000TAX COMPONENTSA) 80C- Investment under 80CB) 80D- Medical InsuranceC) 80DD- Handicapped DependentD) 80E- Education LoanE) 80U- Self With Physical DisabilityF) RentG) Interest On Housing LoanH) Other IncomeI) Previous EmploymentJ) Loss From Letout PropertyK) 80CCG- Rajiv Gandhi Equity Savings SchemeL) SEC80DDB- Self & DependentM) SEC80CCD- National Pension Scheme (NPS)N) Donation u/s 80GI'm guessing that for most of us only A)B)M)are of importance at this moment.A) 80C- Investment under 80CThis would be our major area of discussion as it lists down the instruments, which we can invest in order to save tax. We can invest a maximum of Rs 1.5 lakh in all these instruments put together and the entire amount of Rs 1.5 lakh will be deducted from our taxable income.1) Provident Fund or Voluntary Provident Fund or Employees Provident Fund2) Public Provident Fund3) National Savings Certificate4) Equity- Linked Savings Scheme5) Life Insurance Premiums6) Home Loan Principal Repayment7) Stamp Duty and Registration charged for home8) Five- year bank Fixed Deposits1) Provident Fund (PF)/ Voluntary Provident Fund (VPF)/ Employees Provident Fund (EPF)PF is a part of our salary, which is deducted every month and deposited on our behalf.It is 12% of our basic salary. I.e Rs.2200 (You can always contribute more than the stipulated amount (VPF); in fact you can contribute the entire salary)Your company now invests this amount in Debt bonds which are managed by Fund Managers and we get a return of 8.75% annually.When we leave our company we can apply and withdraw the amount saved.So we should always put this amount in the 80C tax components.Rs.2200/ month= Rs.26,400/ yearPF WITHDRAWAL:Firstly, we can withdraw this amount ONLY IF there is a gap of at least 2 months between the date we leave our previous organisation and the date we join the new one. If not, as per law, we must transfer our PF. (This is assuming that the new company too is covered under the PF Act).Secondly, as per Income Tax Act, premature withdrawal of PF balance will NOT be taxed only if we have had a continuous service of 5 years or more. [Good news is that this 5-year period will also include periods of our previous employment(s) provided we have transferred the PF balances from our previous employer(s) to the latest account.]Thus, under normal circumstances, we are liable to pay tax on our PF amount if the same is withdrawn before 5 years of continuous service. Therefore, it is advisable that we arrange to transfer our PF balance to our new employer(s) whenever we change our jobs and have not yet completed 5 years.2) Public Provident Fund (PPF)Minimum yearly deposit : Rs. 500 Maximum deposit : Rs.1.5 lakhs.The excess amount above Rs. 1.50 lac will neither earn any interest nor will be eligible for rebate under Income Tax Act. The amount can be deposited in lump sum or in a maximum of 12 installments per year.The current interest rate of return is 8.70%/ Annually(compounded annually).Note: PPF cannot be attached under any court order with respect to any debt or liabilities of the account holder. In simple words, No government authority can attack your money in the PPF account (Good for Entrepreneurs)In a generalized view, if an individual deposits an amount of 1 lakh every year for 15 years without any exception, then he would receive a total sum of more than 30 lakh. This reflects the huge amount of benefit applicable on PPF account, for a total investment of 15 lakh (1 lakh every year * 15 years) interest received is more than 16 lakh, which is also in fact non-taxable.Note: Though with such high CPI Inflation numbers in India, it's hard to calculate the real value of Rs. 30 Lakh, fifteen years down the line.PPF LOANS:Loan facility available from 3rd financial year up to 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account shall be 2%. (Yes, we need to pay interest on our own money :-P)Up to a maximum of 25 per cent of the balance at the end of the 2nd immediately preceding year would be allowed as loan. Such withdrawals are to be repaid within 36 months.A second loan could be availed as long as we are within the 3rd and before the 6th year, and only if the first one is fully repaid. Also note that once we become eligible for withdrawals, no loans would be permitted. Inactive accounts or discontinued accounts are not eligible for loan.PPF WITHDRAWAL:There is a lock-in period of 15 years and the money can be withdrawn in whole after its maturity period.After 15 years of maturity, full PPF amount can be withdrawn and all is tax free, including the interest amount as well.There's also an option to extend the term for 5 more years after maturity.(Max 20 Years)Note: We'll discuss the amount to be invested in PPF later.3) National Savings CertificateNSC VIII Issue:Minimum investment: Rs100Maximum limit: NORate of interest: 8.50% (Compounded half- yearly; twice a year)Tax benefit: Investment up to INR 1,50,000/- per annum qualifies for IT Rebate.The instrument is available for investment in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-.INR.100/- purchased shall be INR. 151.62 after 5 years.Note: However, Interest earned on NSC is taxable.NSC IX issue:Minimum investment: Rs 100Maximum limit: NORate of interest: 8.80% (compounded half- yearly; twice a year)Tax benefit : Investment up to INR 1,50,000/- per annum qualifies for IT RebateINR. 100/- grows to INR 234.35 after 10 years.The instrument is available for investment in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-.Note :However, Interest earned on NSC is taxableSummary:• Generally, it is advisable to declare accrued interest on NSC on a yearly basis. So, over the period of six years, you could declare the interest income for each year. In such a case, it does not amount to a huge sum.If you do not declare the interest on accrual basis, then the entire interest earned (difference between the amount deposited and the maturity value) would accumulate in the year of maturity. You could then claim it under Section 80C but it would be a huge amount and would be taxable at the current applicable tax rate.• Once you open an NSC, you can't keep adding to it. You will have to buy another. Let's say you buy a NSC of Rs 30,000. In a year's time, you want to add another Rs 30,000. You cannot add it to this amount. You will have to buy another NSC.This picture would clear up a lot of things:My suggestion Is to buy ten NSC IX certificate of value : Rs.1,000/yearSo your investment would be:March, 2016: 1000April, 2016: 1000...December, 2016: Rs.1000That is Rs. 10,000And subsequently for 2017.....2025And your return would be:March, 2026: Rs.2,343April, 2026: Rs. 2343..December, 2026: Rs. 2,343That is Rs. 23,435And subsequently for 2027...2035NOTE: Post offices in Delhi usually do not keep certificates below Rs. 5000. So we can go for two Rs.5000 certificates in a yearTotal amount invested in 10 years= 10,000 X 10 = Rs. 1,00,000Total amount earned in next 10 years=23,435 X 10= Rs. 2,34,3504) Equity- Linked Savings Scheme (ELSS)Mutual Funds:An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors.3 Types of Mutual Funds:• Equity funds ( High risk, high return)• Balanced funds (Medium risk, medium return) (65%- 80% in equity securities and remaining in debt securities)•Debt funds (Low risk, low return)• Traditional InvestmentThe traditional investment method is buying mutual funds where you invest large amounts at one go in either of the three mutual funds (or multiple)The lock-in period is only three years, the shortest among all tax-saving options under Section 80C. You cannot redeem or switch to another option during this period.• Non- Traditional investment OR Systematic Investment plan (SIP)A Systematic Investment Plan or SIP is a smart and hassle free mode for investing money in mutual funds. SIP allows you to invest a certain pre-determined amount at a regular interval (weekly, monthly, quarterly, etc.). A SIP is a planned approach towards investments and helps you inculcate the habit of saving and building wealth for the future.In the case of SIPs, each instalment is treated as a separate investment and will have a three-year lock-in period.Summary:Min investment : Rs 500Max investment: NATax Benefit: Upto Rs. 1.50 lakh (all equity funds fall under tax benefit but not all balanced and debt funds).All the returns are Tax freeSince its your money and you are the sole owner of it, there would be no penalties even if you miss an SIPSince ELSS are essentially diversified mutual funds, there is no guarantee on returns and the return on your investments totally depends on the capability of the Fund Managers. Therefore a Mutual fund should be carefully studied before investing (Financial Advisors are the best people to guide you; ask for financial advisors in your area on JustDial)RDA V/S SIP:What is RDA?Recurring Deposit is a special kind of Term Deposit offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits. It is similar to making FDs of a certain amount in monthly installments, for example Rs 1000 every month. This deposit matures on a specific date in the future along with all the deposits made every month. Thus, Recurring Deposit schemes allow customers with an opportunity to build up their savings through regular monthly deposits of fixed sum over a fixed period of time.Minimum Period of RD is 6 months and maximum is 10 years.What is variable RDA ?Similar to RDA. Here we can vary the amount invested every month according to our budget and needs."Indian bank" offers variable RDARDA (Recurring Deposit Account)Return in banks: 8.25- 8.50%/ yearReturn in post offices: 8.40%/ yearTax benefit: NoSIPAverage Return for debt funds for 3 years: 10.3%Average Return for balanced funds for 3 years: 13.6%Average Return for equity funds for 3 years : 14.10%Tax benefit: All equity funds fall under tax benefit provision but not all balanced and debt funds do. (Check with financial advisor)My suggestion would be to go with SIPs, which are the best source of investment today, giving us a handsome return after 3-5 years and are capable of dealing with the inflation.Plus we are young, some risk on a tiny part of our income is totally justifiable.I would say Rs.5000/ month In mutual funds will suffice.That is Rs.60,000/ annum5) Life Insurance PremiumsMost of us already have a life insurance. For those who don't have one and want to look at the good available options, here's something on life insurances:• ULIP (Unit Linked Insurance Plans)• Term InsuranceThis is a vast topic and an important one too. But to cut it short, Term insurances are the traditional insurances which give us a death cover but no amount on maturity.On the other hand ULIPS are an amalgamation of term insurances and investment, where a part of our premium is invested in the mutual funds and we get this amount on maturity of the insurance.ULIPS have higher premiums (Rs.40,000-Rs.50,000) compared to term insurances(Rs.5000-Rs.20,000) for our age group.There's no point in mixing life insurances with investments(that's what I feel) as we already have a lot of other options to invest our money in.The only setback with a term insurance is that we don't get any amount on its maturity but again the premium is worth it (death cover).Good Term plans:• Max (conversion rate = 96%)Premium: Rs. 9,918/ yearCover: 1 croreTerm: 35 yearsAdditional cover: Rs.40,000/ month for the next 10 years (after death) with a 10% increment every year.1st year: 40,000/ month2nd year: 44,000/ month..10th year: 94,317/ monthPlus 1 crore straight away.And a 10 day guarantee claim from MAX• HDFC (Conversion Rate= 91%)Premium: Rs.12,035/ yearCover: 1 croreTerm: 35 yearsAdditional cover: Rs.50,000/ month for the next 10 years (after death) with a 10% increment every year.1st year: 50,000/ month2nd year: 55,000/ month..10th year: Rs.1,17,897/ monthPlus 1 crore straight away.6) Home Loan Principal Repayment7) Stamp Duty and Registration charged for homeI'm ignoring these two options as they don't apply to most of us at this moment.8) Five- year bank Fixed DepositsReturn: ~8%Lock- in period: 5 years (no Loans or withdrawal before that)You can consider this option just for the purpose of saving tax and not as a money earning tool. (Low returns and long lock- in period)B) 80D- Medical InsuranceJust enter the whole amount of the medical insurance you have taken for yourself and your family.Exempt from tax: YesM) SEC80CCD- National Pension Scheme (NPS)Our government is reforming its policies and the PF account (with our companies) would convert totally into an NPS account as soon as the bill gets passed. The government is initiating this option to promote compulsive savings for our future.Minimum amount/ contribution: Rs.500Minimum annual contribution: Rs.6,000Maximum annual contribution: NANPS CALCULATOR:Current age: 22Retirement age: 60Monthly contribution: Rs.2,000Expected Rate of Return: 8%(Again our money is invested in mutual funds and we are given an option to select the type of mutual fund)I have taken an average of 8% return. Could be higher as well.Amount invested: Rs9,12,000Interest earned: Rs. 49,51,365Total tax saving: Rs. 2,73,600But return is not tax freeWe can withdraw 40% of the amount at the age of 60 and the rest 60% is again invested by the government and can be withdrawn by us on a monthly basis as pension.CONCLUSIONA) 80C- Investment under 80C (Limit: Rs.1,50,000/ annum)•Provident Fund or Voluntary Provident Fund or Employees Provident Fund : Rs.26,400/ annum•Equity- Linked Savings Scheme: Rs.60,000/ annum•Life Insurance Premiums : Rs.10,000/ annum•Public Provident Fund•National Savings CertificateNow we are left with Rs.53,600 of investment/ annum under 80C, which can be put into either PPF or NSC or both (your decision).B) 80D- Medical Insurance: Just enter the whole amount of the medical insurance you have taken for yourself and your family (approx Rs.4,000-5,000/ annum)M) SEC80CCD- National Pension Scheme (NPS): Rs.24,000/ annumYou may not want to invest your money under any of these schemes. That is totally fine and you'll get this money on a monthly basis as a part of your salary. But this part of your income would be taxable and tax would be deducted according to the tax slab you fall in.Good luck :-)

If you are asking, what are the investment option(s) after Demonetisation,Yes, sure; more options available as legal.Bank DepositsMutual Funds (Debt / Equity)Stock MarketReal EstateYou can use Bank Deposits on Short term as the Returns will not to be smile :)Bank Deposit Rates will be come low, but surely Safe.Invest in Real Estate after 2 - 3 Years of Demonetisation and GST 2017.But now for Real Estate (Negative in Short Term)Mutual Funds and Stock Market will surely perform better in the upcoming years and good for the Longterm.If your Question, “Especially for the people who have lent it to people and gaining monthly/regular interest out of it….”Herenow, i m always suggesting Don’t Park your money at home or street. Because, you are living in a Tech-world. Mobile Apps, Internet Banking, Wallets will hurt if you go for offline(White goes Black). So, Beware of it.Try to put your money on Regularised (Banks, Mutual Funds, Stocks, Realty). Even nowadays, SEBI have a proposition for Regularisation of Peer-to-Peer Lending in India.So, always Do safe on your Hard /Easy earned money :)Note:On the Past, we had more options to use / help for others with it like Donation. But, we was always ignoring the Govt. Policies. At now, Follow the Current Procedure that what Govt. tells, earn and keep it safe