Let us all
welcome the year 2013 with varied ideas to bring home tax planning for you and
your family and also take you through Investment Strategies for investing your
money. The following thirteen important Investment Tips for the year 2013 will
surely help you to achieve your desired results :-
1. Income-tax file for one
and all: In whose name to make the investment yes, this should be the first
point in the back of your mind before planning investment strategies for 2013,
it is time now for every tax payer of the country to make a resolution to have
a separate independent Income-tax File for every member in the family. The
objective of this is to achieve tax planning and cut down on your income-tax
payments. Firstly think of your wife and if she does not have till now a
separate independent Income-tax File, then start of having such independent
Income-tax File for your wife. The concept of gift and loans in the name of
your wife will help you to achieve this. However, do remember that your wife
can receive gift from any relative other than her husband, her father in law
and her mother in law. However, wife is free to take loan with reasonable
interest from anyone including the husband. Similarly adopt the concept of
gifting your major children and start having separate independent Income-tax
File for your major children.
2. Investments for Hindu Undivided Family tax
file in your kitty Investments made by your Hindu Undivided Family can bring
rich dividends for you in the year 2013. If you are a Hindu, then it is time
now to find out whether you have a separate independent Income-tax File of your
Hindu Undivided Family. If still now you have not been instrumental in opening
a separate Income-tax File for your Hindu Undivided Family, then right now is
the time when you should start such separate Income-tax File in your family so
that it helps you in the process of tax planning. The HUF file apart from
enjoying the basic income-tax exemption of Rs. 2,00,000 will also continue to
enjoy tax deduction in terms of section 80C as well as deduction for interest
on housing loans. Also do remember that your HUF file can come into existence
whether you have a son or just a daughter and even if you do not have any
children, still your HUF file can come into existence right now.
3. Plan for
Investments for your minor children If you are having a minor child or a grand
child, plan right now the different strategies for the safety and security of
your minor child in particular. If you want to have lots of income and wealth in
the name of the minor child and would still like no clubbing of the income of
the minor child, then it is time now to think of creating a separate
independent hundred per cent “Specific Beneficiary Trust” in the name of the
minor child based on the principles enunciated by the various courts of India
including the Supreme Court of India so that the income of the minor child with
special terms and conditions mentioned in the Trust Deed is not clubbed with
the income of the parents. It is also possible for you to think of starting a
PPF account in the name of the minor child for his or her safety and also do
not forget to take out Life Insurance Policies specially in the name of your
minor child which will help the process of investment strategy in the years to
come for the safety, security of your loving children.
4. Deposits in savings
bank account: In the year 2013 also consider keeping money in the Savings Bank
Account specially because the interest rates in the Savings Bank Account have
gone up and moreover the biggest advantage is that from the Financial Year
2012-13 the interest income from Deposits in Savings Bank Account in Bank, a
Co-operative Society and a Post Office will be exempted up to Rs. 10,000 as per
section 80 TTA of the Income tax Act, 1961. This benefit is available to
Individuals and Hindu Undivided Families. The “Time Deposits” interest income
would not enjoy the deduction.
5. Zero Coupon Bond: Think of investing in Zero
Coupon Bond in the year 2013 and it should be taken as a preferred tool of
instrument of investment specially by persons not interested in regular income.
Generally the maturity time of Zero Coupon Bond is ten years. Also look into
the tax planning aspect at the time of maturity. Because of the benefit of Cost
Inflation Index tax will be virtually nil on your income from Zero Coupon Bond
at the time of maturity. It is also good to gift Zero Coupon Bonds to your
minor children aged eight years and above.
6. Tax free bonds: If you are coming
in the highest income bracket, namely if you are having income exceeding Rs. 10
lakhs in a year, then surely it is worthwhile for you to make your investment
in tax free bonds specially if you calculate the impact of income-tax savings
on the same. The investment in the year 2013 in tax free bonds would be better
than Bank Fixed Deposits.
7. Postal Instruments: Do invest in Postal Office
Instruments like National Savings Certificate VIII issue, National Savings
Certificates IX issue, Post Office Time Deposit Receipts, as well as in Senior Citizen
Savings Scheme specially keeping in view the aspects connected with tax
deduction under section 80C and also the rise in the interest rates. The above
items from Post Office will be eligible for 80C deduction. There has also been
some increase recently in the interest of these investments.
8. Continue
investment in Public Provident Fund: In the year 2013 also please continue to
keep your investment in Public Provident Fund Account specially because of the
fact that the interest income from Public Provident Fund will now be 8.8 per
cent. Moreover, such income will continue to be exempted from income-tax. Also
do open Public Provident Fund Account specially for your minor children and
your spouse. However, the total investment in Public Provident Fund Account for
you and your minor children taken together in a financial year should not
exceed Rs.1 lakh.
9. Real Estate Investments for the family: In case you do not
yet own your own residential house property then it is time now to start
investing in new residential house property so that you can have your dream
house. The investment in residential property would also bring home for you
special tax deduction under section 24 for interest payment on loan for
residential property. The maximum deduction would be Rs.1,50,000 for interest
payment. Besides, the repayment housing loan also would enjoy tax deduction
under section 80C. It would be better to buy a house in the name of two or more
family members so that each one can enjoy tax deduction. From tax angle it
would not be worth just to buy a piece of land because no tax benefit is
available only on land purchase.
10. Time to vigorously think on investments in NPS: Please focus your investment strategy for the year 2013 on investment vistas connected with New Pension Scheme. Although by now the New Pension Scheme popularly known as NPS is into operation for the last couple of years. However, still now NPS investment has not become the darling of tax payers of India. However, it is time now to show your love and affection to the investment in new Pension Scheme. It is time now for you to study the new provisions in greater detail and try to open separate NPS account for different members in your family. For those tax payers who are having high income and wealth, it is recommended that two tier account in NPS should also be obtained. Finally if you are going to complete sixty years of age during the year 2013, then you should be more careful to immediately open NPS account in your name. This is mainly because of the fact that once you have completed sixty years of age, you cannot open a new NPS Account. Please note that after sixty years of age one cannot go in for opening an NPS account. But if you have already opened NPS account, then you can continue contributing in the said account. Hence, in the year 2013 you should aim at bringing NPS as a preferred tool of investment in your family.
10. Time to vigorously think on investments in NPS: Please focus your investment strategy for the year 2013 on investment vistas connected with New Pension Scheme. Although by now the New Pension Scheme popularly known as NPS is into operation for the last couple of years. However, still now NPS investment has not become the darling of tax payers of India. However, it is time now to show your love and affection to the investment in new Pension Scheme. It is time now for you to study the new provisions in greater detail and try to open separate NPS account for different members in your family. For those tax payers who are having high income and wealth, it is recommended that two tier account in NPS should also be obtained. Finally if you are going to complete sixty years of age during the year 2013, then you should be more careful to immediately open NPS account in your name. This is mainly because of the fact that once you have completed sixty years of age, you cannot open a new NPS Account. Please note that after sixty years of age one cannot go in for opening an NPS account. But if you have already opened NPS account, then you can continue contributing in the said account. Hence, in the year 2013 you should aim at bringing NPS as a preferred tool of investment in your family.
11. New
Life Insurance Policies for your family: Are you adequately insured ? Let this
question be asked by every adult income-tax payer in his family. I would like
every tax payer to take care of securing his family during the year against
calamity. One of the best way to protect the family is to adequately insure all
the family members. It is time now for you not just to count your Life
Insurance Policies for different members in the family but to sit down and
ponder whether all the family members are adequately insured. In most cases I
am sure the answer that will come in conclusion would be that most of the
family members are not adequately insured. Hence, during the year 2013 please
take a call to answer the question whether you and your family members are
adequately insured. Do not forget to take an insurance policy for your dear
loving daughter too.
12. Rajiv Gandhi Equity Savings Scheme: For all those tax
payers who have never had any exposure in the stock market let the year 2013 be
their first year for investing in the stock market. Firstly the action plan to
enter into the stock market would be to open a Demat Account in your name. To
inspire all those who have never had any exposure in the stock market tax
incentive is being made available in the Income-tax Law in terms of the
provision contained in section 80CCG whereby first time investors in the stock
market can go in for making investment up to Rs. 50,000 and enjoy a tax
deduction equal to 50 per cent of such investment. Thus, tax saving can be made
by taking an exposure to Rajiv Gandhi Equity Investment Scheme and thereby
cutting down your tax payment by Rs. 2,500 to Rs. 5,000.
13. Investment in Gold
& Silver: Purely from investment angle it makes no sense to invest in gold
jewellery for use at a future point of time. Generally, it is seen that people
buy jewellery specially during festive season specially when there is no making
charges. This jewellery is being purchased for let us say the marriage of your
dear daughter which however is to take place a decade later. Hence, it is
recommended that in the year 2013 do buy jewellery when the purpose is to buy
for your own use and wear but abstain from investing in jewellry in case you
plan to use the jewellery for marriage in the family which will take place
after a long interval because the jewellery would become outdated. It will
however be better to go in for buying gold coins and investments through Gold
ETF
Let us all welcome the
year 2013 with varied ideas to bring home tax planning for you and your
family and also take you through Investment Strategies for investing
your money. The following thirteen important Investment Tips for the
year 2013 will surely help you to achieve your desired results :-
1. Income-tax file for one and all:
In whose name to make the investment yes, this should be the first point
in the back of your mind before planning investment strategies for
2013, it is time now for every tax payer of the country to make a
resolution to have a separate independent Income-tax File for every
member in the family. The objective of this is to achieve tax planning
and cut down on your income-tax payments. Firstly think of your wife
and if she does not have till now a separate independent Income-tax
File, then start of having such independent Income-tax File for your
wife. The concept of gift and loans in the name of your wife will help
you to achieve this. However, do remember that your wife can receive
gift from any relative other than her husband, her father in law and her
mother in law. However, wife is free to take loan with reasonable
interest from anyone including the husband. Similarly adopt the concept
of gifting your major children and start having separate independent
Income-tax File for your major children.
2. Investments for Hindu Undivided Family tax file in your kitty
Investments made by your Hindu Undivided Family can bring rich
dividends for you in the year 2013. If you are a Hindu, then it is time
now to find out whether you have a separate independent Income-tax File
of your Hindu Undivided Family. If still now you have not been
instrumental in opening a separate Income-tax File for your Hindu
Undivided Family, then right now is the time when you should start such
separate Income-tax File in your family so that it helps you in the
process of tax planning. The HUF file apart from enjoying the basic
income-tax exemption of Rs. 2,00,000 will also continue to enjoy tax
deduction in terms of section 80C as well as deduction for interest on
housing loans. Also do remember that your HUF file can come into
existence whether you have a son or just a daughter and even if you do
not have any children, still your HUF file can come into existence right
now.
3. Plan for Investments for your minor children
If you are having a minor child or a grand child, plan right now the
different strategies for the safety and security of your minor child in
particular. If you want to have lots of income and wealth in the name
of the minor child and would still like no clubbing of the income of the
minor child, then it is time now to think of creating a separate
independent hundred per cent “Specific Beneficiary Trust” in the name of
the minor child based on the principles enunciated by the various
courts of India including the Supreme Court of India so that the income
of the minor child with special terms and conditions mentioned in the
Trust Deed is not clubbed with the income of the parents. It is also
possible for you to think of starting a PPF account in the name of the
minor child for his or her safety and also do not forget to take out
Life Insurance Policies specially in the name of your minor child which
will help the process of investment strategy in the years to come for
the safety, security of your loving children.
4. Deposits in savings bank account:
In the year 2013 also consider keeping money in the Savings Bank Account
specially because the interest rates in the Savings Bank Account have
gone up and moreover the biggest advantage is that from the Financial
Year 2012-13 the interest income from Deposits in Savings Bank Account
in Bank, a Co-operative Society and a Post Office will be exempted up
to Rs. 10,000 as per section 80 TTA of the Income tax Act, 1961. This
benefit is available to Individuals and Hindu Undivided Families. The
“Time Deposits” interest income would not enjoy the deduction.
5. Zero Coupon Bond:
Think of investing in Zero Coupon Bond in the year 2013 and it should be
taken as a preferred tool of instrument of investment specially by
persons not interested in regular income. Generally the maturity time
of Zero Coupon Bond is ten years. Also look into the tax planning
aspect at the time of maturity. Because of the benefit of Cost
Inflation Index tax will be virtually nil on your income from Zero
Coupon Bond at the time of maturity. It is also good to gift Zero
Coupon Bonds to your minor children aged eight years and above.
6. Tax free bonds:
If you are coming in the highest income bracket, namely if you are
having income exceeding Rs. 10 lakhs in a year, then surely it is
worthwhile for you to make your investment in tax free bonds specially
if you calculate the impact of income-tax savings on the same. The
investment in the year 2013 in tax free bonds would be better than Bank
Fixed Deposits.
7. Postal Instruments:
Do invest in Postal Office Instruments like National Savings Certificate
VIII issue, National Savings Certificates IX issue, Post Office Time
Deposit Receipts, as well as in Senior Citizen Savings Scheme specially
keeping in view the aspects connected with tax deduction under section
80C and also the rise in the interest rates. The above items from Post
Office will be eligible for 80C deduction. There has also been some
increase recently in the interest of these investments.
8. Continue investment in Public Provident Fund:
In the year 2013 also please continue to keep your investment in Public
Provident Fund Account specially because of the fact that the interest
income from Public Provident Fund will now be 8.8 per cent. Moreover,
such income will continue to be exempted from income-tax. Also do open
Public Provident Fund Account specially for your minor children and
your spouse. However, the total investment in Public Provident Fund
Account for you and your minor children taken together in a financial
year should not exceed Rs.1 lakh.
9. Real Estate Investments for the family:
In case you do not yet own your own residential house property then it
is time now to start investing in new residential house property so that
you can have your dream house. The investment in residential property
would also bring home for you special tax deduction under section 24
for interest payment on loan for residential property. The maximum
deduction would be Rs.1,50,000 for interest payment. Besides, the
repayment housing loan also would enjoy tax deduction under section 80C.
It would be better to buy a house in the name of two or more family
members so that each one can enjoy tax deduction. From tax angle it
would not be worth just to buy a piece of land because no tax benefit is
available only on land purchase.
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Let us all welcome the
year 2013 with varied ideas to bring home tax planning for you and your
family and also take you through Investment Strategies for investing
your money. The following thirteen important Investment Tips for the
year 2013 will surely help you to achieve your desired results :-
1. Income-tax file for one and all:
In whose name to make the investment yes, this should be the first point
in the back of your mind before planning investment strategies for
2013, it is time now for every tax payer of the country to make a
resolution to have a separate independent Income-tax File for every
member in the family. The objective of this is to achieve tax planning
and cut down on your income-tax payments. Firstly think of your wife
and if she does not have till now a separate independent Income-tax
File, then start of having such independent Income-tax File for your
wife. The concept of gift and loans in the name of your wife will help
you to achieve this. However, do remember that your wife can receive
gift from any relative other than her husband, her father in law and her
mother in law. However, wife is free to take loan with reasonable
interest from anyone including the husband. Similarly adopt the concept
of gifting your major children and start having separate independent
Income-tax File for your major children.
2. Investments for Hindu Undivided Family tax file in your kitty
Investments made by your Hindu Undivided Family can bring rich
dividends for you in the year 2013. If you are a Hindu, then it is time
now to find out whether you have a separate independent Income-tax File
of your Hindu Undivided Family. If still now you have not been
instrumental in opening a separate Income-tax File for your Hindu
Undivided Family, then right now is the time when you should start such
separate Income-tax File in your family so that it helps you in the
process of tax planning. The HUF file apart from enjoying the basic
income-tax exemption of Rs. 2,00,000 will also continue to enjoy tax
deduction in terms of section 80C as well as deduction for interest on
housing loans. Also do remember that your HUF file can come into
existence whether you have a son or just a daughter and even if you do
not have any children, still your HUF file can come into existence right
now.
3. Plan for Investments for your minor children
If you are having a minor child or a grand child, plan right now the
different strategies for the safety and security of your minor child in
particular. If you want to have lots of income and wealth in the name
of the minor child and would still like no clubbing of the income of the
minor child, then it is time now to think of creating a separate
independent hundred per cent “Specific Beneficiary Trust” in the name of
the minor child based on the principles enunciated by the various
courts of India including the Supreme Court of India so that the income
of the minor child with special terms and conditions mentioned in the
Trust Deed is not clubbed with the income of the parents. It is also
possible for you to think of starting a PPF account in the name of the
minor child for his or her safety and also do not forget to take out
Life Insurance Policies specially in the name of your minor child which
will help the process of investment strategy in the years to come for
the safety, security of your loving children.
4. Deposits in savings bank account:
In the year 2013 also consider keeping money in the Savings Bank Account
specially because the interest rates in the Savings Bank Account have
gone up and moreover the biggest advantage is that from the Financial
Year 2012-13 the interest income from Deposits in Savings Bank Account
in Bank, a Co-operative Society and a Post Office will be exempted up
to Rs. 10,000 as per section 80 TTA of the Income tax Act, 1961. This
benefit is available to Individuals and Hindu Undivided Families. The
“Time Deposits” interest income would not enjoy the deduction.
5. Zero Coupon Bond:
Think of investing in Zero Coupon Bond in the year 2013 and it should be
taken as a preferred tool of instrument of investment specially by
persons not interested in regular income. Generally the maturity time
of Zero Coupon Bond is ten years. Also look into the tax planning
aspect at the time of maturity. Because of the benefit of Cost
Inflation Index tax will be virtually nil on your income from Zero
Coupon Bond at the time of maturity. It is also good to gift Zero
Coupon Bonds to your minor children aged eight years and above.
6. Tax free bonds:
If you are coming in the highest income bracket, namely if you are
having income exceeding Rs. 10 lakhs in a year, then surely it is
worthwhile for you to make your investment in tax free bonds specially
if you calculate the impact of income-tax savings on the same. The
investment in the year 2013 in tax free bonds would be better than Bank
Fixed Deposits.
7. Postal Instruments:
Do invest in Postal Office Instruments like National Savings Certificate
VIII issue, National Savings Certificates IX issue, Post Office Time
Deposit Receipts, as well as in Senior Citizen Savings Scheme specially
keeping in view the aspects connected with tax deduction under section
80C and also the rise in the interest rates. The above items from Post
Office will be eligible for 80C deduction. There has also been some
increase recently in the interest of these investments.
8. Continue investment in Public Provident Fund:
In the year 2013 also please continue to keep your investment in Public
Provident Fund Account specially because of the fact that the interest
income from Public Provident Fund will now be 8.8 per cent. Moreover,
such income will continue to be exempted from income-tax. Also do open
Public Provident Fund Account specially for your minor children and
your spouse. However, the total investment in Public Provident Fund
Account for you and your minor children taken together in a financial
year should not exceed Rs.1 lakh.
9. Real Estate Investments for the family:
In case you do not yet own your own residential house property then it
is time now to start investing in new residential house property so that
you can have your dream house. The investment in residential property
would also bring home for you special tax deduction under section 24
for interest payment on loan for residential property. The maximum
deduction would be Rs.1,50,000 for interest payment. Besides, the
repayment housing loan also would enjoy tax deduction under section 80C.
It would be better to buy a house in the name of two or more family
members so that each one can enjoy tax deduction. From tax angle it
would not be worth just to buy a piece of land because no tax benefit is
available only on land purchase.
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Let us all welcome the
year 2013 with varied ideas to bring home tax planning for you and your
family and also take you through Investment Strategies for investing
your money. The following thirteen important Investment Tips for the
year 2013 will surely help you to achieve your desired results :-
1. Income-tax file for one and all:
In whose name to make the investment yes, this should be the first point
in the back of your mind before planning investment strategies for
2013, it is time now for every tax payer of the country to make a
resolution to have a separate independent Income-tax File for every
member in the family. The objective of this is to achieve tax planning
and cut down on your income-tax payments. Firstly think of your wife
and if she does not have till now a separate independent Income-tax
File, then start of having such independent Income-tax File for your
wife. The concept of gift and loans in the name of your wife will help
you to achieve this. However, do remember that your wife can receive
gift from any relative other than her husband, her father in law and her
mother in law. However, wife is free to take loan with reasonable
interest from anyone including the husband. Similarly adopt the concept
of gifting your major children and start having separate independent
Income-tax File for your major children.
2. Investments for Hindu Undivided Family tax file in your kitty
Investments made by your Hindu Undivided Family can bring rich
dividends for you in the year 2013. If you are a Hindu, then it is time
now to find out whether you have a separate independent Income-tax File
of your Hindu Undivided Family. If still now you have not been
instrumental in opening a separate Income-tax File for your Hindu
Undivided Family, then right now is the time when you should start such
separate Income-tax File in your family so that it helps you in the
process of tax planning. The HUF file apart from enjoying the basic
income-tax exemption of Rs. 2,00,000 will also continue to enjoy tax
deduction in terms of section 80C as well as deduction for interest on
housing loans. Also do remember that your HUF file can come into
existence whether you have a son or just a daughter and even if you do
not have any children, still your HUF file can come into existence right
now.
3. Plan for Investments for your minor children
If you are having a minor child or a grand child, plan right now the
different strategies for the safety and security of your minor child in
particular. If you want to have lots of income and wealth in the name
of the minor child and would still like no clubbing of the income of the
minor child, then it is time now to think of creating a separate
independent hundred per cent “Specific Beneficiary Trust” in the name of
the minor child based on the principles enunciated by the various
courts of India including the Supreme Court of India so that the income
of the minor child with special terms and conditions mentioned in the
Trust Deed is not clubbed with the income of the parents. It is also
possible for you to think of starting a PPF account in the name of the
minor child for his or her safety and also do not forget to take out
Life Insurance Policies specially in the name of your minor child which
will help the process of investment strategy in the years to come for
the safety, security of your loving children.
4. Deposits in savings bank account:
In the year 2013 also consider keeping money in the Savings Bank Account
specially because the interest rates in the Savings Bank Account have
gone up and moreover the biggest advantage is that from the Financial
Year 2012-13 the interest income from Deposits in Savings Bank Account
in Bank, a Co-operative Society and a Post Office will be exempted up
to Rs. 10,000 as per section 80 TTA of the Income tax Act, 1961. This
benefit is available to Individuals and Hindu Undivided Families. The
“Time Deposits” interest income would not enjoy the deduction.
5. Zero Coupon Bond:
Think of investing in Zero Coupon Bond in the year 2013 and it should be
taken as a preferred tool of instrument of investment specially by
persons not interested in regular income. Generally the maturity time
of Zero Coupon Bond is ten years. Also look into the tax planning
aspect at the time of maturity. Because of the benefit of Cost
Inflation Index tax will be virtually nil on your income from Zero
Coupon Bond at the time of maturity. It is also good to gift Zero
Coupon Bonds to your minor children aged eight years and above.
6. Tax free bonds:
If you are coming in the highest income bracket, namely if you are
having income exceeding Rs. 10 lakhs in a year, then surely it is
worthwhile for you to make your investment in tax free bonds specially
if you calculate the impact of income-tax savings on the same. The
investment in the year 2013 in tax free bonds would be better than Bank
Fixed Deposits.
7. Postal Instruments:
Do invest in Postal Office Instruments like National Savings Certificate
VIII issue, National Savings Certificates IX issue, Post Office Time
Deposit Receipts, as well as in Senior Citizen Savings Scheme specially
keeping in view the aspects connected with tax deduction under section
80C and also the rise in the interest rates. The above items from Post
Office will be eligible for 80C deduction. There has also been some
increase recently in the interest of these investments.
8. Continue investment in Public Provident Fund:
In the year 2013 also please continue to keep your investment in Public
Provident Fund Account specially because of the fact that the interest
income from Public Provident Fund will now be 8.8 per cent. Moreover,
such income will continue to be exempted from income-tax. Also do open
Public Provident Fund Account specially for your minor children and
your spouse. However, the total investment in Public Provident Fund
Account for you and your minor children taken together in a financial
year should not exceed Rs.1 lakh.
9. Real Estate Investments for the family:
In case you do not yet own your own residential house property then it
is time now to start investing in new residential house property so that
you can have your dream house. The investment in residential property
would also bring home for you special tax deduction under section 24
for interest payment on loan for residential property. The maximum
deduction would be Rs.1,50,000 for interest payment. Besides, the
repayment housing loan also would enjoy tax deduction under section 80C.
It would be better to buy a house in the name of two or more family
members so that each one can enjoy tax deduction. From tax angle it
would not be worth just to buy a piece of land because no tax benefit is
available only on land purchase.
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Let us all welcome the
year 2013 with varied ideas to bring home tax planning for you and your
family and also take you through Investment Strategies for investing
your money. The following thirteen important Investment Tips for the
year 2013 will surely help you to achieve your desired results :-
1. Income-tax file for one and all:
In whose name to make the investment yes, this should be the first point
in the back of your mind before planning investment strategies for
2013, it is time now for every tax payer of the country to make a
resolution to have a separate independent Income-tax File for every
member in the family. The objective of this is to achieve tax planning
and cut down on your income-tax payments. Firstly think of your wife
and if she does not have till now a separate independent Income-tax
File, then start of having such independent Income-tax File for your
wife. The concept of gift and loans in the name of your wife will help
you to achieve this. However, do remember that your wife can receive
gift from any relative other than her husband, her father in law and her
mother in law. However, wife is free to take loan with reasonable
interest from anyone including the husband. Similarly adopt the concept
of gifting your major children and start having separate independent
Income-tax File for your major children.
2. Investments for Hindu Undivided Family tax file in your kitty
Investments made by your Hindu Undivided Family can bring rich
dividends for you in the year 2013. If you are a Hindu, then it is time
now to find out whether you have a separate independent Income-tax File
of your Hindu Undivided Family. If still now you have not been
instrumental in opening a separate Income-tax File for your Hindu
Undivided Family, then right now is the time when you should start such
separate Income-tax File in your family so that it helps you in the
process of tax planning. The HUF file apart from enjoying the basic
income-tax exemption of Rs. 2,00,000 will also continue to enjoy tax
deduction in terms of section 80C as well as deduction for interest on
housing loans. Also do remember that your HUF file can come into
existence whether you have a son or just a daughter and even if you do
not have any children, still your HUF file can come into existence right
now.
3. Plan for Investments for your minor children
If you are having a minor child or a grand child, plan right now the
different strategies for the safety and security of your minor child in
particular. If you want to have lots of income and wealth in the name
of the minor child and would still like no clubbing of the income of the
minor child, then it is time now to think of creating a separate
independent hundred per cent “Specific Beneficiary Trust” in the name of
the minor child based on the principles enunciated by the various
courts of India including the Supreme Court of India so that the income
of the minor child with special terms and conditions mentioned in the
Trust Deed is not clubbed with the income of the parents. It is also
possible for you to think of starting a PPF account in the name of the
minor child for his or her safety and also do not forget to take out
Life Insurance Policies specially in the name of your minor child which
will help the process of investment strategy in the years to come for
the safety, security of your loving children.
4. Deposits in savings bank account:
In the year 2013 also consider keeping money in the Savings Bank Account
specially because the interest rates in the Savings Bank Account have
gone up and moreover the biggest advantage is that from the Financial
Year 2012-13 the interest income from Deposits in Savings Bank Account
in Bank, a Co-operative Society and a Post Office will be exempted up
to Rs. 10,000 as per section 80 TTA of the Income tax Act, 1961. This
benefit is available to Individuals and Hindu Undivided Families. The
“Time Deposits” interest income would not enjoy the deduction.
5. Zero Coupon Bond:
Think of investing in Zero Coupon Bond in the year 2013 and it should be
taken as a preferred tool of instrument of investment specially by
persons not interested in regular income. Generally the maturity time
of Zero Coupon Bond is ten years. Also look into the tax planning
aspect at the time of maturity. Because of the benefit of Cost
Inflation Index tax will be virtually nil on your income from Zero
Coupon Bond at the time of maturity. It is also good to gift Zero
Coupon Bonds to your minor children aged eight years and above.
6. Tax free bonds:
If you are coming in the highest income bracket, namely if you are
having income exceeding Rs. 10 lakhs in a year, then surely it is
worthwhile for you to make your investment in tax free bonds specially
if you calculate the impact of income-tax savings on the same. The
investment in the year 2013 in tax free bonds would be better than Bank
Fixed Deposits.
7. Postal Instruments:
Do invest in Postal Office Instruments like National Savings Certificate
VIII issue, National Savings Certificates IX issue, Post Office Time
Deposit Receipts, as well as in Senior Citizen Savings Scheme specially
keeping in view the aspects connected with tax deduction under section
80C and also the rise in the interest rates. The above items from Post
Office will be eligible for 80C deduction. There has also been some
increase recently in the interest of these investments.
8. Continue investment in Public Provident Fund:
In the year 2013 also please continue to keep your investment in Public
Provident Fund Account specially because of the fact that the interest
income from Public Provident Fund will now be 8.8 per cent. Moreover,
such income will continue to be exempted from income-tax. Also do open
Public Provident Fund Account specially for your minor children and
your spouse. However, the total investment in Public Provident Fund
Account for you and your minor children taken together in a financial
year should not exceed Rs.1 lakh.
9. Real Estate Investments for the family:
In case you do not yet own your own residential house property then it
is time now to start investing in new residential house property so that
you can have your dream house. The investment in residential property
would also bring home for you special tax deduction under section 24
for interest payment on loan for residential property. The maximum
deduction would be Rs.1,50,000 for interest payment. Besides, the
repayment housing loan also would enjoy tax deduction under section 80C.
It would be better to buy a house in the name of two or more family
members so that each one can enjoy tax deduction. From tax angle it
would not be worth just to buy a piece of land because no tax benefit is
available only on land purchase.
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Let us all welcome the
year 2013 with varied ideas to bring home tax planning for you and your
family and also take you through Investment Strategies for investing
your money. The following thirteen important Investment Tips for the
year 2013 will surely help you to achieve your desired results :-
1. Income-tax file for one and all:
In whose name to make the investment yes, this should be the first point
in the back of your mind before planning investment strategies for
2013, it is time now for every tax payer of the country to make a
resolution to have a separate independent Income-tax File for every
member in the family. The objective of this is to achieve tax planning
and cut down on your income-tax payments. Firstly think of your wife
and if she does not have till now a separate independent Income-tax
File, then start of having such independent Income-tax File for your
wife. The concept of gift and loans in the name of your wife will help
you to achieve this. However, do remember that your wife can receive
gift from any relative other than her husband, her father in law and her
mother in law. However, wife is free to take loan with reasonable
interest from anyone including the husband. Similarly adopt the concept
of gifting your major children and start having separate independent
Income-tax File for your major children.
2. Investments for Hindu Undivided Family tax file in your kitty
Investments made by your Hindu Undivided Family can bring rich
dividends for you in the year 2013. If you are a Hindu, then it is time
now to find out whether you have a separate independent Income-tax File
of your Hindu Undivided Family. If still now you have not been
instrumental in opening a separate Income-tax File for your Hindu
Undivided Family, then right now is the time when you should start such
separate Income-tax File in your family so that it helps you in the
process of tax planning. The HUF file apart from enjoying the basic
income-tax exemption of Rs. 2,00,000 will also continue to enjoy tax
deduction in terms of section 80C as well as deduction for interest on
housing loans. Also do remember that your HUF file can come into
existence whether you have a son or just a daughter and even if you do
not have any children, still your HUF file can come into existence right
now.
3. Plan for Investments for your minor children
If you are having a minor child or a grand child, plan right now the
different strategies for the safety and security of your minor child in
particular. If you want to have lots of income and wealth in the name
of the minor child and would still like no clubbing of the income of the
minor child, then it is time now to think of creating a separate
independent hundred per cent “Specific Beneficiary Trust” in the name of
the minor child based on the principles enunciated by the various
courts of India including the Supreme Court of India so that the income
of the minor child with special terms and conditions mentioned in the
Trust Deed is not clubbed with the income of the parents. It is also
possible for you to think of starting a PPF account in the name of the
minor child for his or her safety and also do not forget to take out
Life Insurance Policies specially in the name of your minor child which
will help the process of investment strategy in the years to come for
the safety, security of your loving children.
4. Deposits in savings bank account:
In the year 2013 also consider keeping money in the Savings Bank Account
specially because the interest rates in the Savings Bank Account have
gone up and moreover the biggest advantage is that from the Financial
Year 2012-13 the interest income from Deposits in Savings Bank Account
in Bank, a Co-operative Society and a Post Office will be exempted up
to Rs. 10,000 as per section 80 TTA of the Income tax Act, 1961. This
benefit is available to Individuals and Hindu Undivided Families. The
“Time Deposits” interest income would not enjoy the deduction.
5. Zero Coupon Bond:
Think of investing in Zero Coupon Bond in the year 2013 and it should be
taken as a preferred tool of instrument of investment specially by
persons not interested in regular income. Generally the maturity time
of Zero Coupon Bond is ten years. Also look into the tax planning
aspect at the time of maturity. Because of the benefit of Cost
Inflation Index tax will be virtually nil on your income from Zero
Coupon Bond at the time of maturity. It is also good to gift Zero
Coupon Bonds to your minor children aged eight years and above.
6. Tax free bonds:
If you are coming in the highest income bracket, namely if you are
having income exceeding Rs. 10 lakhs in a year, then surely it is
worthwhile for you to make your investment in tax free bonds specially
if you calculate the impact of income-tax savings on the same. The
investment in the year 2013 in tax free bonds would be better than Bank
Fixed Deposits.
7. Postal Instruments:
Do invest in Postal Office Instruments like National Savings Certificate
VIII issue, National Savings Certificates IX issue, Post Office Time
Deposit Receipts, as well as in Senior Citizen Savings Scheme specially
keeping in view the aspects connected with tax deduction under section
80C and also the rise in the interest rates. The above items from Post
Office will be eligible for 80C deduction. There has also been some
increase recently in the interest of these investments.
8. Continue investment in Public Provident Fund:
In the year 2013 also please continue to keep your investment in Public
Provident Fund Account specially because of the fact that the interest
income from Public Provident Fund will now be 8.8 per cent. Moreover,
such income will continue to be exempted from income-tax. Also do open
Public Provident Fund Account specially for your minor children and
your spouse. However, the total investment in Public Provident Fund
Account for you and your minor children taken together in a financial
year should not exceed Rs.1 lakh.
9. Real Estate Investments for the family:
In case you do not yet own your own residential house property then it
is time now to start investing in new residential house property so that
you can have your dream house. The investment in residential property
would also bring home for you special tax deduction under section 24
for interest payment on loan for residential property. The maximum
deduction would be Rs.1,50,000 for interest payment. Besides, the
repayment housing loan also would enjoy tax deduction under section 80C.
It would be better to buy a house in the name of two or more family
members so that each one can enjoy tax deduction. From tax angle it
would not be worth just to buy a piece of land because no tax benefit is
available only on land purchase.
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Let us all welcome the
year 2013 with varied ideas to bring home tax planning for you and your
family and also take you through Investment Strategies for investing
your money. The following thirteen important Investment Tips for the
year 2013 will surely help you to achieve your desired results :-
1. Income-tax file for one and all:
In whose name to make the investment yes, this should be the first point
in the back of your mind before planning investment strategies for
2013, it is time now for every tax payer of the country to make a
resolution to have a separate independent Income-tax File for every
member in the family. The objective of this is to achieve tax planning
and cut down on your income-tax payments. Firstly think of your wife
and if she does not have till now a separate independent Income-tax
File, then start of having such independent Income-tax File for your
wife. The concept of gift and loans in the name of your wife will help
you to achieve this. However, do remember that your wife can receive
gift from any relative other than her husband, her father in law and her
mother in law. However, wife is free to take loan with reasonable
interest from anyone including the husband. Similarly adopt the concept
of gifting your major children and start having separate independent
Income-tax File for your major children.
2. Investments for Hindu Undivided Family tax file in your kitty
Investments made by your Hindu Undivided Family can bring rich
dividends for you in the year 2013. If you are a Hindu, then it is time
now to find out whether you have a separate independent Income-tax File
of your Hindu Undivided Family. If still now you have not been
instrumental in opening a separate Income-tax File for your Hindu
Undivided Family, then right now is the time when you should start such
separate Income-tax File in your family so that it helps you in the
process of tax planning. The HUF file apart from enjoying the basic
income-tax exemption of Rs. 2,00,000 will also continue to enjoy tax
deduction in terms of section 80C as well as deduction for interest on
housing loans. Also do remember that your HUF file can come into
existence whether you have a son or just a daughter and even if you do
not have any children, still your HUF file can come into existence right
now.
3. Plan for Investments for your minor children
If you are having a minor child or a grand child, plan right now the
different strategies for the safety and security of your minor child in
particular. If you want to have lots of income and wealth in the name
of the minor child and would still like no clubbing of the income of the
minor child, then it is time now to think of creating a separate
independent hundred per cent “Specific Beneficiary Trust” in the name of
the minor child based on the principles enunciated by the various
courts of India including the Supreme Court of India so that the income
of the minor child with special terms and conditions mentioned in the
Trust Deed is not clubbed with the income of the parents. It is also
possible for you to think of starting a PPF account in the name of the
minor child for his or her safety and also do not forget to take out
Life Insurance Policies specially in the name of your minor child which
will help the process of investment strategy in the years to come for
the safety, security of your loving children.
4. Deposits in savings bank account:
In the year 2013 also consider keeping money in the Savings Bank Account
specially because the interest rates in the Savings Bank Account have
gone up and moreover the biggest advantage is that from the Financial
Year 2012-13 the interest income from Deposits in Savings Bank Account
in Bank, a Co-operative Society and a Post Office will be exempted up
to Rs. 10,000 as per section 80 TTA of the Income tax Act, 1961. This
benefit is available to Individuals and Hindu Undivided Families. The
“Time Deposits” interest income would not enjoy the deduction.
5. Zero Coupon Bond:
Think of investing in Zero Coupon Bond in the year 2013 and it should be
taken as a preferred tool of instrument of investment specially by
persons not interested in regular income. Generally the maturity time
of Zero Coupon Bond is ten years. Also look into the tax planning
aspect at the time of maturity. Because of the benefit of Cost
Inflation Index tax will be virtually nil on your income from Zero
Coupon Bond at the time of maturity. It is also good to gift Zero
Coupon Bonds to your minor children aged eight years and above.
6. Tax free bonds:
If you are coming in the highest income bracket, namely if you are
having income exceeding Rs. 10 lakhs in a year, then surely it is
worthwhile for you to make your investment in tax free bonds specially
if you calculate the impact of income-tax savings on the same. The
investment in the year 2013 in tax free bonds would be better than Bank
Fixed Deposits.
7. Postal Instruments:
Do invest in Postal Office Instruments like National Savings Certificate
VIII issue, National Savings Certificates IX issue, Post Office Time
Deposit Receipts, as well as in Senior Citizen Savings Scheme specially
keeping in view the aspects connected with tax deduction under section
80C and also the rise in the interest rates. The above items from Post
Office will be eligible for 80C deduction. There has also been some
increase recently in the interest of these investments.
8. Continue investment in Public Provident Fund:
In the year 2013 also please continue to keep your investment in Public
Provident Fund Account specially because of the fact that the interest
income from Public Provident Fund will now be 8.8 per cent. Moreover,
such income will continue to be exempted from income-tax. Also do open
Public Provident Fund Account specially for your minor children and
your spouse. However, the total investment in Public Provident Fund
Account for you and your minor children taken together in a financial
year should not exceed Rs.1 lakh.
9. Real Estate Investments for the family:
In case you do not yet own your own residential house property then it
is time now to start investing in new residential house property so that
you can have your dream house. The investment in residential property
would also bring home for you special tax deduction under section 24
for interest payment on loan for residential property. The maximum
deduction would be Rs.1,50,000 for interest payment. Besides, the
repayment housing loan also would enjoy tax deduction under section 80C.
It would be better to buy a house in the name of two or more family
members so that each one can enjoy tax deduction. From tax angle it
would not be worth just to buy a piece of land because no tax benefit is
available only on land purchase.
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Let us all welcome the
year 2013 with varied ideas to bring home tax planning for you and your
family and also take you through Investment Strategies for investing
your money. The following thirteen important Investment Tips for the
year 2013 will surely help you to achieve your desired results :-
1. Income-tax file for one and all:
In whose name to make the investment yes, this should be the first point
in the back of your mind before planning investment strategies for
2013, it is time now for every tax payer of the country to make a
resolution to have a separate independent Income-tax File for every
member in the family. The objective of this is to achieve tax planning
and cut down on your income-tax payments. Firstly think of your wife
and if she does not have till now a separate independent Income-tax
File, then start of having such independent Income-tax File for your
wife. The concept of gift and loans in the name of your wife will help
you to achieve this. However, do remember that your wife can receive
gift from any relative other than her husband, her father in law and her
mother in law. However, wife is free to take loan with reasonable
interest from anyone including the husband. Similarly adopt the concept
of gifting your major children and start having separate independent
Income-tax File for your major children.
2. Investments for Hindu Undivided Family tax file in your kitty
Investments made by your Hindu Undivided Family can bring rich
dividends for you in the year 2013. If you are a Hindu, then it is time
now to find out whether you have a separate independent Income-tax File
of your Hindu Undivided Family. If still now you have not been
instrumental in opening a separate Income-tax File for your Hindu
Undivided Family, then right now is the time when you should start such
separate Income-tax File in your family so that it helps you in the
process of tax planning. The HUF file apart from enjoying the basic
income-tax exemption of Rs. 2,00,000 will also continue to enjoy tax
deduction in terms of section 80C as well as deduction for interest on
housing loans. Also do remember that your HUF file can come into
existence whether you have a son or just a daughter and even if you do
not have any children, still your HUF file can come into existence right
now.
3. Plan for Investments for your minor children
If you are having a minor child or a grand child, plan right now the
different strategies for the safety and security of your minor child in
particular. If you want to have lots of income and wealth in the name
of the minor child and would still like no clubbing of the income of the
minor child, then it is time now to think of creating a separate
independent hundred per cent “Specific Beneficiary Trust” in the name of
the minor child based on the principles enunciated by the various
courts of India including the Supreme Court of India so that the income
of the minor child with special terms and conditions mentioned in the
Trust Deed is not clubbed with the income of the parents. It is also
possible for you to think of starting a PPF account in the name of the
minor child for his or her safety and also do not forget to take out
Life Insurance Policies specially in the name of your minor child which
will help the process of investment strategy in the years to come for
the safety, security of your loving children.
4. Deposits in savings bank account:
In the year 2013 also consider keeping money in the Savings Bank Account
specially because the interest rates in the Savings Bank Account have
gone up and moreover the biggest advantage is that from the Financial
Year 2012-13 the interest income from Deposits in Savings Bank Account
in Bank, a Co-operative Society and a Post Office will be exempted up
to Rs. 10,000 as per section 80 TTA of the Income tax Act, 1961. This
benefit is available to Individuals and Hindu Undivided Families. The
“Time Deposits” interest income would not enjoy the deduction.
5. Zero Coupon Bond:
Think of investing in Zero Coupon Bond in the year 2013 and it should be
taken as a preferred tool of instrument of investment specially by
persons not interested in regular income. Generally the maturity time
of Zero Coupon Bond is ten years. Also look into the tax planning
aspect at the time of maturity. Because of the benefit of Cost
Inflation Index tax will be virtually nil on your income from Zero
Coupon Bond at the time of maturity. It is also good to gift Zero
Coupon Bonds to your minor children aged eight years and above.
6. Tax free bonds:
If you are coming in the highest income bracket, namely if you are
having income exceeding Rs. 10 lakhs in a year, then surely it is
worthwhile for you to make your investment in tax free bonds specially
if you calculate the impact of income-tax savings on the same. The
investment in the year 2013 in tax free bonds would be better than Bank
Fixed Deposits.
7. Postal Instruments:
Do invest in Postal Office Instruments like National Savings Certificate
VIII issue, National Savings Certificates IX issue, Post Office Time
Deposit Receipts, as well as in Senior Citizen Savings Scheme specially
keeping in view the aspects connected with tax deduction under section
80C and also the rise in the interest rates. The above items from Post
Office will be eligible for 80C deduction. There has also been some
increase recently in the interest of these investments.
8. Continue investment in Public Provident Fund:
In the year 2013 also please continue to keep your investment in Public
Provident Fund Account specially because of the fact that the interest
income from Public Provident Fund will now be 8.8 per cent. Moreover,
such income will continue to be exempted from income-tax. Also do open
Public Provident Fund Account specially for your minor children and
your spouse. However, the total investment in Public Provident Fund
Account for you and your minor children taken together in a financial
year should not exceed Rs.1 lakh.
9. Real Estate Investments for the family:
In case you do not yet own your own residential house property then it
is time now to start investing in new residential house property so that
you can have your dream house. The investment in residential property
would also bring home for you special tax deduction under section 24
for interest payment on loan for residential property. The maximum
deduction would be Rs.1,50,000 for interest payment. Besides, the
repayment housing loan also would enjoy tax deduction under section 80C.
It would be better to buy a house in the name of two or more family
members so that each one can enjoy tax deduction. From tax angle it
would not be worth just to buy a piece of land because no tax benefit is
available only on land purchase.
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Let us all welcome the
year 2013 with varied ideas to bring home tax planning for you and your
family and also take you through Investment Strategies for investing
your money. The following thirteen important Investment Tips for the
year 2013 will surely help you to achieve your desired results :-
1. Income-tax file for one and all:
In whose name to make the investment yes, this should be the first point
in the back of your mind before planning investment strategies for
2013, it is time now for every tax payer of the country to make a
resolution to have a separate independent Income-tax File for every
member in the family. The objective of this is to achieve tax planning
and cut down on your income-tax payments. Firstly think of your wife
and if she does not have till now a separate independent Income-tax
File, then start of having such independent Income-tax File for your
wife. The concept of gift and loans in the name of your wife will help
you to achieve this. However, do remember that your wife can receive
gift from any relative other than her husband, her father in law and her
mother in law. However, wife is free to take loan with reasonable
interest from anyone including the husband. Similarly adopt the concept
of gifting your major children and start having separate independent
Income-tax File for your major children.
2. Investments for Hindu Undivided Family tax file in your kitty
Investments made by your Hindu Undivided Family can bring rich
dividends for you in the year 2013. If you are a Hindu, then it is time
now to find out whether you have a separate independent Income-tax File
of your Hindu Undivided Family. If still now you have not been
instrumental in opening a separate Income-tax File for your Hindu
Undivided Family, then right now is the time when you should start such
separate Income-tax File in your family so that it helps you in the
process of tax planning. The HUF file apart from enjoying the basic
income-tax exemption of Rs. 2,00,000 will also continue to enjoy tax
deduction in terms of section 80C as well as deduction for interest on
housing loans. Also do remember that your HUF file can come into
existence whether you have a son or just a daughter and even if you do
not have any children, still your HUF file can come into existence right
now.
3. Plan for Investments for your minor children
If you are having a minor child or a grand child, plan right now the
different strategies for the safety and security of your minor child in
particular. If you want to have lots of income and wealth in the name
of the minor child and would still like no clubbing of the income of the
minor child, then it is time now to think of creating a separate
independent hundred per cent “Specific Beneficiary Trust” in the name of
the minor child based on the principles enunciated by the various
courts of India including the Supreme Court of India so that the income
of the minor child with special terms and conditions mentioned in the
Trust Deed is not clubbed with the income of the parents. It is also
possible for you to think of starting a PPF account in the name of the
minor child for his or her safety and also do not forget to take out
Life Insurance Policies specially in the name of your minor child which
will help the process of investment strategy in the years to come for
the safety, security of your loving children.
4. Deposits in savings bank account:
In the year 2013 also consider keeping money in the Savings Bank Account
specially because the interest rates in the Savings Bank Account have
gone up and moreover the biggest advantage is that from the Financial
Year 2012-13 the interest income from Deposits in Savings Bank Account
in Bank, a Co-operative Society and a Post Office will be exempted up
to Rs. 10,000 as per section 80 TTA of the Income tax Act, 1961. This
benefit is available to Individuals and Hindu Undivided Families. The
“Time Deposits” interest income would not enjoy the deduction.
5. Zero Coupon Bond:
Think of investing in Zero Coupon Bond in the year 2013 and it should be
taken as a preferred tool of instrument of investment specially by
persons not interested in regular income. Generally the maturity time
of Zero Coupon Bond is ten years. Also look into the tax planning
aspect at the time of maturity. Because of the benefit of Cost
Inflation Index tax will be virtually nil on your income from Zero
Coupon Bond at the time of maturity. It is also good to gift Zero
Coupon Bonds to your minor children aged eight years and above.
6. Tax free bonds:
If you are coming in the highest income bracket, namely if you are
having income exceeding Rs. 10 lakhs in a year, then surely it is
worthwhile for you to make your investment in tax free bonds specially
if you calculate the impact of income-tax savings on the same. The
investment in the year 2013 in tax free bonds would be better than Bank
Fixed Deposits.
7. Postal Instruments:
Do invest in Postal Office Instruments like National Savings Certificate
VIII issue, National Savings Certificates IX issue, Post Office Time
Deposit Receipts, as well as in Senior Citizen Savings Scheme specially
keeping in view the aspects connected with tax deduction under section
80C and also the rise in the interest rates. The above items from Post
Office will be eligible for 80C deduction. There has also been some
increase recently in the interest of these investments.
8. Continue investment in Public Provident Fund:
In the year 2013 also please continue to keep your investment in Public
Provident Fund Account specially because of the fact that the interest
income from Public Provident Fund will now be 8.8 per cent. Moreover,
such income will continue to be exempted from income-tax. Also do open
Public Provident Fund Account specially for your minor children and
your spouse. However, the total investment in Public Provident Fund
Account for you and your minor children taken together in a financial
year should not exceed Rs.1 lakh.
9. Real Estate Investments for the family:
In case you do not yet own your own residential house property then it
is time now to start investing in new residential house property so that
you can have your dream house. The investment in residential property
would also bring home for you special tax deduction under section 24
for interest payment on loan for residential property. The maximum
deduction would be Rs.1,50,000 for interest payment. Besides, the
repayment housing loan also would enjoy tax deduction under section 80C.
It would be better to buy a house in the name of two or more family
members so that each one can enjoy tax deduction. From tax angle it
would not be worth just to buy a piece of land because no tax benefit is
available only on land purchase.
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Let us all welcome the
year 2013 with varied ideas to bring home tax planning for you and your
family and also take you through Investment Strategies for investing
your money. The following thirteen important Investment Tips for the
year 2013 will surely help you to achieve your desired results :-
1. Income-tax file for one and all:
In whose name to make the investment yes, this should be the first point
in the back of your mind before planning investment strategies for
2013, it is time now for every tax payer of the country to make a
resolution to have a separate independent Income-tax File for every
member in the family. The objective of this is to achieve tax planning
and cut down on your income-tax payments. Firstly think of your wife
and if she does not have till now a separate independent Income-tax
File, then start of having such independent Income-tax File for your
wife. The concept of gift and loans in the name of your wife will help
you to achieve this. However, do remember that your wife can receive
gift from any relative other than her husband, her father in law and her
mother in law. However, wife is free to take loan with reasonable
interest from anyone including the husband. Similarly adopt the concept
of gifting your major children and start having separate independent
Income-tax File for your major children.
2. Investments for Hindu Undivided Family tax file in your kitty
Investments made by your Hindu Undivided Family can bring rich
dividends for you in the year 2013. If you are a Hindu, then it is time
now to find out whether you have a separate independent Income-tax File
of your Hindu Undivided Family. If still now you have not been
instrumental in opening a separate Income-tax File for your Hindu
Undivided Family, then right now is the time when you should start such
separate Income-tax File in your family so that it helps you in the
process of tax planning. The HUF file apart from enjoying the basic
income-tax exemption of Rs. 2,00,000 will also continue to enjoy tax
deduction in terms of section 80C as well as deduction for interest on
housing loans. Also do remember that your HUF file can come into
existence whether you have a son or just a daughter and even if you do
not have any children, still your HUF file can come into existence right
now.
3. Plan for Investments for your minor children
If you are having a minor child or a grand child, plan right now the
different strategies for the safety and security of your minor child in
particular. If you want to have lots of income and wealth in the name
of the minor child and would still like no clubbing of the income of the
minor child, then it is time now to think of creating a separate
independent hundred per cent “Specific Beneficiary Trust” in the name of
the minor child based on the principles enunciated by the various
courts of India including the Supreme Court of India so that the income
of the minor child with special terms and conditions mentioned in the
Trust Deed is not clubbed with the income of the parents. It is also
possible for you to think of starting a PPF account in the name of the
minor child for his or her safety and also do not forget to take out
Life Insurance Policies specially in the name of your minor child which
will help the process of investment strategy in the years to come for
the safety, security of your loving children.
4. Deposits in savings bank account:
In the year 2013 also consider keeping money in the Savings Bank Account
specially because the interest rates in the Savings Bank Account have
gone up and moreover the biggest advantage is that from the Financial
Year 2012-13 the interest income from Deposits in Savings Bank Account
in Bank, a Co-operative Society and a Post Office will be exempted up
to Rs. 10,000 as per section 80 TTA of the Income tax Act, 1961. This
benefit is available to Individuals and Hindu Undivided Families. The
“Time Deposits” interest income would not enjoy the deduction.
5. Zero Coupon Bond:
Think of investing in Zero Coupon Bond in the year 2013 and it should be
taken as a preferred tool of instrument of investment specially by
persons not interested in regular income. Generally the maturity time
of Zero Coupon Bond is ten years. Also look into the tax planning
aspect at the time of maturity. Because of the benefit of Cost
Inflation Index tax will be virtually nil on your income from Zero
Coupon Bond at the time of maturity. It is also good to gift Zero
Coupon Bonds to your minor children aged eight years and above.
6. Tax free bonds:
If you are coming in the highest income bracket, namely if you are
having income exceeding Rs. 10 lakhs in a year, then surely it is
worthwhile for you to make your investment in tax free bonds specially
if you calculate the impact of income-tax savings on the same. The
investment in the year 2013 in tax free bonds would be better than Bank
Fixed Deposits.
7. Postal Instruments:
Do invest in Postal Office Instruments like National Savings Certificate
VIII issue, National Savings Certificates IX issue, Post Office Time
Deposit Receipts, as well as in Senior Citizen Savings Scheme specially
keeping in view the aspects connected with tax deduction under section
80C and also the rise in the interest rates. The above items from Post
Office will be eligible for 80C deduction. There has also been some
increase recently in the interest of these investments.
8. Continue investment in Public Provident Fund:
In the year 2013 also please continue to keep your investment in Public
Provident Fund Account specially because of the fact that the interest
income from Public Provident Fund will now be 8.8 per cent. Moreover,
such income will continue to be exempted from income-tax. Also do open
Public Provident Fund Account specially for your minor children and
your spouse. However, the total investment in Public Provident Fund
Account for you and your minor children taken together in a financial
year should not exceed Rs.1 lakh.
9. Real Estate Investments for the family:
In case you do not yet own your own residential house property then it
is time now to start investing in new residential house property so that
you can have your dream house. The investment in residential property
would also bring home for you special tax deduction under section 24
for interest payment on loan for residential property. The maximum
deduction would be Rs.1,50,000 for interest payment. Besides, the
repayment housing loan also would enjoy tax deduction under section 80C.
It would be better to buy a house in the name of two or more family
members so that each one can enjoy tax deduction. From tax angle it
would not be worth just to buy a piece of land because no tax benefit is
available only on land purchase.
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/investing/13-investment-tips-for-2013_800707.html?utm_source=ref_article
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