Posted at 3:35 PM , on December 4, 2015
It is already a well-understood fact that mutual funds offer the best way for retail investors to participate in the markets. With the benefit of professional management and the benefit of diversification, mutual funds are in a position to outperform markets over a longer period. Thus they offer the best means of creating wealth over the long term. Mutual funds have another important role to play. They are extremely critical to help meet our long term goals. Typically, goals include our requirements like capital appreciation, liquidity, tax efficiencies, synchronizing withdrawals, timing redemptions etc. The beauty of mutual funds is that they have a wide variety of schemes like equity funds, debt funds, variable rate funds and money-market funds etc which are suited to each of these unique needs. Continue reading
Posted at 7:52 PM , on March 9, 2015
The tax season for the salaried has been quite regular. Around December they are required to submit their proofs for deduction to their employers. Typically, the employer accepts documents in case of certain exemptions like HRA, Section 80C, Medical Insurance Premium, Interest on home loan etc. In such cases, the employer accepts the documents submitted by the employee which are then evaluated and considered for the purpose of deciding the amount of TDS. But the problem arises since there is no standard documentation procedure. This creates last minute rejection of exemptions by the employer or the auditor. Let me illustrate some of them. Continue reading
Posted at 2:18 PM , on February 26, 2015
We expect the Union Budget 2015 to take a small step in making life easier for the bank depositors, especially senior citizens, with respect to deduction of TDS on interest.
Today banks are not required to deduct TDS (Tax deducted at Source) on interest paid on savings accounts but if the interest paid exceeds Rs.10,000/- per annum on an FD, then the bank is obligated to deduct TDS. While it is a reasonable measure to front-end the collection of taxes, it would be a lot better if the budget tried to simplify this process. It will reduce the burden on banks and also save senior citizens living on interest income from the procedural hassles. Continue reading