QUOTE OF THE WEEK:
"Inflation, as we all know, is a regressive tax, and it hurts the poor the most" - D Subbarao, RBI Governor
YOUR FINANCE DEMYSTIFIED:
Common mistakes people make when filing income tax returns
All those who have taxable income are required to file their return. Also, those with income above Rs 5 lakh have to compulsorily e-file their return from assessment year 2013-14. It’s very important to file error free Income tax Return to avoid future problems. Let’s see the most commonly committed mistakes those could be avoided.
Every year a large number of returns are rejected for incorrect personal details like name, bank account number, IFSC code and address. This leads to delays in refunds. So please be sure to fill correct personal details.
Many of us think that employer’s contribution to EPF has to be included in claiming sec 80C benefits. It’s incorrect. Similarly only the principal repaid on housing loan is eligible for sec 80 C. Many other deductions are claimed under wrong heads leading to their rejection and consequent arising of tax liability... Read more
10 tax saving options other than Section 80C
Income tax exemptions & deductions under various sections
To encourage savings, the government gives tax breaks on certain financial products under Section 80C of the Income Tax Act. Investments made under such schemes are referred to as 80C investments. Under this section, you can invest a maximum of Rs. 1 lakh and if you are in the highest tax bracket of 30%, you save a tax of Rs 30,000.
The Section 80C allows deduction of up to Rs. 1 lakh for investments made under heads like life insurance premiums, contribution to PPF (Public Provident Fund), ELSS (equity linked savings scheme), unit linked insurance plans (ULIPs) premium, NPS (National Pension System), bank FDs or term deposits >5 years, National Saving Certificates, Post Office Deposit accounts, etc. Stamp duty and registration charges for a home and home loan principal repayment also qualify for deduction under Section 80C. One must plan investments well and spread it out across the various instruments specified under this section to avail maximum tax benefit... Read more
DID YOU KNOW?
Investments covered u/s 80C Income Tax
With every new year comes new joys, new wishes and new dreams coupled with new liabilities and responsibilities including the old ones. One such responsibility is financial planning for ourselves and our family for each financial year. The tax plan has always been a concern of the last minute, be it for the service or business class.
Even in today’s tech-savvy generation, there are many people who are not aware of the basic tax planning requirements. Let us understand the various avenues for investment where tax can be saved under Section 80C... Read more
TERM OF THE WEEK
Beneficiary: An individual, institution, trustee, or estate which receives, or may become eligible to receive, benefits under a will, insurance policy, retirement plan, annuity, trust, or other contract.
IN THE NEWS THIS WEEK
Banks to stop levy of pre-payment penalty on floating rate loans: RBI
69% firms say advisers with CFP certification see a higher rate of growth of AUM
SEBI notifies rules on shelf prospectus for debt securities
FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.
In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.
Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.
This portal is but one of the various IIFL initiatives that would be part of FLAME.