Category: Money Matters

Should I pay or save tax?

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How to save your Income tax Upto 12 lacs (Sec - 87A, Sec 80CCD(1B))

Should I pay or should I save taxes? If that is your dilemma, then you can take solace from the fact that even Benjamin Franklin, the founding father of the United States of America, faced the same tough choice way back in 1789 when in a letter he wrote to Jean-Baptiste Leroy about the new constitution of his country, ‘…nothing is certain except death and taxes.’  Income taxes are unavoidable. But the question is: should one pay it or invest in specified instruments to save one’s tax outgo? Under the law of the land, you need to pay tax to …

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You need to pay tax on dividend

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You need to pay tax on dividend in 2023: All you need to know

You need to pay tax on dividend, 15 March deadline for advance tax payment. Dividend payment is no longer tax-free in your hand from 1 April 2020. If you have dividend income from shares, equity or debt mutual funds, you’ll have to add this as ‘income from other sources’ to arrive at your total income and pay income tax accordingly.  Till March 2020 dividend in your hands tax-free as the dividend paying company or mutual fund house was required to pay a dividend distribution tax (DDT). The Finance Act 2020 has withdrawn the DDT liability on firms and mutual funds …

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Why should you invest in shares/mutual funds – part-3

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Why should you invest in shares/mutual funds in 2021 -- part-3

ETFs – a simple and low-risk way to invest in shares. Investment in equities doesn’t always entail a thorough research of balance sheets, management pedigree, etc of companies. Thanks to the advent of exchange-traded funds (ETFs), those are now things of the past. Passive investment through ETFs is increasingly becoming a darling to seasoned as well as first-time investors in equity markets around the world. Consider this bit of information to get an idea about how popular are ETFs – 60% of daily trading volume in the US stock market, which is 8 times bigger than India, are ETFs. In …

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Why should you invest in shares/mutual funds – part-2

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Why should you invest in share/ mutual fund in 2021 - Part 2

Risks get ironed out in the long-run We have seen in the previous article how the shine of bank fixed deposits fades away under the lens of inflation. (Read here: Think beyond bank deposits to stave off inflation)  However, it doesn’t necessarily mean that you should not keep money in bank deposits. It rather suggests that one should not keep all his/her hard earned money in bank and post-office deposits. Because, you may be losing on return by not investing in shares and mutual funds for the risks inherent therein.  But, do you know, bank deposits too are not entirely …

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Why should you invest in shares/mutual funds – part 1

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Why should you invest in share/ mutual fund in 2021 - Part 1

Think beyond bank deposits to stave off Inflation If you feel quite satisfied by keeping your savings in a bank or post-office fixed deposit scheme, think again. Sure, while signing up for a bank fixed deposit, you know beforehand exactly how much (rate of interest) and how long (the maturity of the deposit) you’ll get. But, have you considered the ‘real’ return on maturity after providing for inflation and income taxes? Or, for that matter, bank fixed deposits also come with liquidity risks in the form that if you want to withdraw the money before maturity, you’ll have to pay …

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