Archive for the ‘Finance’ Category

                               This is the beginning of the year so we need to declare our savings so that our employer does not deduct tax.

Even If the tax is deducted nowadays it is not that difficult to get your refund money back.I was amazed at the speed with which US Refunds would come.

Use the above site to track your refunds.It even gives the status of cheque and speed post tracking number.The below site will help to track your post.

These websites are really awesome and great hope to millions of Indian tax payers.

CRISIL Fund awards 2009

Most Innovative Fund of the Year
ICICI Prudential Target Returns Fund
Equity Mutual Fund House of the Year
DSP BlackRock Mutual Fund
Debt Mutual Fund House of the Year
ICICI Prudential Mutual Fund
Mutual Fund House of the Year
Reliance Mutual Fund
Most Investor-Friendly Fund House of the Year Award
UTI Mutual Fund
Large Cap Oriented Funds DSP BlackRock Top 100 Equity Fund
HDFC Top 200 Fund
Equity Diversified Funds DSP BlackRock Equity Fund
UTI Dividend Yield Fund
Small and Mid Cap Funds Sundaram BNP Paribas S M I L E Fund
Balance Funds Reliance Regular Savings Fund – Balanced
Income Funds Canara Robeco Income
Gilt Funds ICICI Prudential Gilt Fund – Investment – PF Option
Equity Linked Savings Schemes Fidelity Tax Advantage Fund
Monthly Income Plans Reliance Monthly Income Plan
Index Funds Nifty Benchmark Exchange Traded Scheme – Nifty BeES
Income Funds – Short Term Birla Sun Life Short Term Fund
Ultra Short Term Funds HDFC Cash Management Fund – Treasury Advantage Plan
Reliance Medium Term Fund
Liquid Funds ICICI Prudential Liquid Plan
Reliance Liquid Fund – Treasury Plan

                               For ppl who have invested in mutual funds.-  We all might have invested in various mutual funds across company.It use to be very difficult to manage them.No more we have that issues.Click on below link…

This link will help you generate consolidated account statement for all mutual funds registered under CAMS and Karvy.You have to give email id or PAN as key.So either of these detail you must have furnished.

We can check the current value and NAV in a single place.

                                 March is always tax planning month.Since most of our employers deduct tax in advance, we need to do only the planning.We need to devote adequate time and effort to the tax planning exercise and be aware of the various benefits that they can availed. Some tax-planning tips that can aid salaried individuals minimise their tax liability.

1. Section 80C deduction

Under Section 80C, the maximum deduction available is Rs 100,000 pa. Ideally, salaried individuals whose gross total income is equal to or more than Rs 250,000 should utilise the entire Rs 100,000 limit.

Consider the case of an individual whose taxable income is Rs 600,000 and who only utilises half of the available Rs 100,000 limit. He would end up paying an additional tax of Rs 15,450 as opposed to an individual with the same taxable income, but has utilised the entire limit.

Also, at times, individuals make investments of over Rs 100,000 in Section 80C designated avenues, since they fail to understand that the benefits are capped. For example, despite making investments of Rs 70,000 in Public Provident Fund and Rs 40,000 in ELSS, the amount eligible is only Rs 100,000.

Following investments/contributions qualify for Section 80C deductions,

Public Provident Fund
National Saving Certificate
Accrued interest on National Saving Certificate
Life Insurance Premium
Tuition fees paid for children’s education (maximum 2 children)
Principal component of home loan repayment
Equity Linked Savings Schemes (ELSS)

ULIPs and Mutual Funds with 3 year Lock-in
5-Year fixed deposits with banks and Post Office

2.Beyond Section 80C

For salaried individuals whose gross total income exceeds Rs 250,000 pa, deductions under Section 80C may not be sufficient to reduce the overall tax liability. In such cases they can consider the following:

Home loan: Individuals intending to buy a house should consider opting for a home loan. Interest payments of upto Rs 150,000 pa are eligible for deduction under Section 24.

Medical insurance: An individual who pays medical insurance premium for self or spouse/dependent children is allowed a deduction of upto Rs 15,000 pa under section 80D.

An additional deduction of up to Rs 15,000 pa is allowed for premium payment made for parents. In case the parents are senior citizens, then the maximum deduction allowed is Rs 20,000 per year.

Donations: Subject to the certain limits, donations to specified funds/institutions (Homes or Orphanages)  are eligible for tax benefits under Section 80G.Though social service should not be done to save tax.This could serve both the purpose.

Education:Salaried individuals who plan to pursue higher education should avail of an education loan as the entire interest is eligible for deduction under Section 80E. We can get tax exemption for the interest we are paying on education loan.The loan can be for self, spouse or child from an approved charitable institution or a notified financial institution.

3. Restructure the salary

Restructuring the salary and including certain components can go a long way in reducing the tax liability. Unlike eligible investments which lead to an additional cash outflow, restructuring the salary is a more ‘efficient’ means of claiming tax benefits. Not all employers give this option of restructuring the salary.If  given make use of it.The following can form a part of one’s salary structure:

Food coupons like Sodexo and Ticket Restaurant; they are exempt from tax up to Rs 36,000 per year.
Sundry Medical expenses are exempt up to Rs 15,000 per year can be utilised by submitting Original medical receipts.

Individuals living in a rented accommodation should have House Rent Allowance (HRA) as part of their salary.
Transport allowance is exempt upto Rs 800 per month.
Leave Travel Allowance (LTA) can be claimed twice in a block of four years for domestic travel.

4. Claim tax benefits on house rent paid

Salaried individuals can claim rent paid by them for residential accommodation, if HRA doesn’t form part of their salary. This deduction is available under Section 80GG and is least of the following:

25% of the total income or,
Rs 2,000 per month or,
Excess of rent paid over 10% of total income
Please note that the above deduction will be denied if the taxpayer or his spouse or minor child owns a residential accommodation in the location where the taxpayer resides or performs his office duties.

5. Opt for a joint home loan

As discussed earlier, the principal repayment on a home loan is eligible for a deduction of up to Rs 100,000 pa and the interest paid is eligible for a deduction of up to Rs 150,000 per year.

In cases where the home loan is for a substantial sum, it is not uncommon for the interest and principal repayment to exceed the stated limit. To ensure that the tax benefit is optimally utilised, an individual can consider opting for a joint loan with his spouse or parent or sibling.

This will ensure that both the co-owners can claim tax deductions in the proportion of their holding in the loan. The co-owner falling in the higher tax bracket should hold a higher proportion of home loan to ensure that the tax benefits are maximised.

Benefits of tax-planning

Income (Rs)

Tax Rate (%)

Maximum tax savings
after 80C deductions

Savings invested
@ 8% pa for 20 years

Savings invested
@ 15% pa for 20 years

Upto 150,000












500,001 and above





As can be seen in the table above, making use of the available tax deductions can go a long way in helping individuals accumulate wealth. Consider the case of an individual in the highest tax bracket with a gross total income of Rs 600,000.

If he chooses to ignore the tax sops available under Section 80C, his tax liability will amount to Rs 87,550. Conversely, if he chooses to makes eligible investments/contributions of Rs 100,000 under Section 80C, his tax liability will be Rs 56,650 i.e. a saving of Rs 30,900.

The amount saved in turn can be invested in various avenues like fixed deposits, mutual funds and equities, depending on his risk appetite.

Given that the tax-planning exercise can aid salaried individuals to both save on tax and accumulate wealth, they would do well to offer the exercise the importance that it deserves.

Disclaimer:I am not a tax consultant.This is my take on tax planning.