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TAXSAVER HAS GROWN 93^ TIMES IN 18 YEARS www.ekarup.com +91 9894447881-2-3-4 “The hardest thing in the world to understand is the income tax.”

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TAXSAVER HAS

GROWN 93^ TIMES

IN 18 YEARS

www.ekarup.com +91 9894447881-2-3-4

“The hardest thing in the world to understand is the income tax.”

ELSS are mutual fund scheme & are

quite similar to diversified equity funds of

Mutual Fund.

As the name suggests, the scheme

primarily invests in equity market by buying

equity stocks of companies listed on the

stock exchanges.

The units of the scheme are offered at

the NAV (Net Asset Value).

The NAV is announced for all

business days and keeps changing

primarily depending upon the movement in

the prices of stocks held in the portfolio of

the scheme.

ELSS Mutual Fund

www.ekarup.com+91 9894447881-2-3-4

Equity Linked Savings Scheme

(ELSS) offers a simple way to get tax

benefits and at the same time get an

opportunity to gain from the potential of

Indian equity markets.

ELSS is a type of diversified equity

mutual fund which is qualified for tax

exemption under section 80C of the

Income Tax Act, and offers the twin-

advantage of,

capital appreciation and

tax benefits.

It comes with a lock-in period of three

years.

Earn Money Save Tax

+91 9894447881-2-3-4www.ekarup.com

Comparison of various tax saving instruments

Investment

Avenue

%

Return

Min

Investme

nt

Max

Investmen

t

Lock in

Period

Feature

National Saving

Certificate

8 Rs.100 No limit 6 years Interest is taxable

Public Provident

Fund

8 Rs.500 Rs.70,000 15 years Tax Free Return

Time Deposit 6.25-7.5 Rs.200 No limit 5 years

(to avail 80C

benefit)

Interest is taxable

Senior Citizen

Saving Scheme

9 Rs.1000 Rs.15 lakh 5 years

(to avail 80C

benefit)

Minimum age is 55

to avail this option

Equity Linked Saving

Scheme

Market

driven but

one can

expect 15-

17% return

Rs.500 to

Rs.5000

No limit 3 years Lowest Lock in

period with

maximum Possible

Return

* Apart from these, insurance premium on life insurance policies and principal

component of housing loan are also eligible for Section 80 C benefit.

+91 9894447881-2-3-4www.ekarup.com

Why should one invest in an ELSS?

ELSS funds are one of the best

avenues to save tax under Section 80C.

This is because along with the tax

deduction, the investor also gets the

potential upside of investing in the equity

markets.

Also, no tax is levied on the long-

term capital gains from these funds.

Moreover, compared to other tax

saving options, ELSS has the shortest

lock-in period of three years.

+91 9894447881-2-3-4 www.ekarup.com

ELSS Investment Option

ELSS

Dividend OptionGrowth Option

Dividend Payout Dividend ReinvestedUnder the Growth option, theinvestor will not get anyincome during the tenure ofinvestment. At the time ofredemption, the investor getlump-sum Amount

Under this plan, if the schemesdeclare a dividend, the investorwill receive dividend income

Under this scheme, the dividenddeclared by the scheme isreinvested on behalf of theinvestor at the prevailing NAV onthe day if dividend. Investor canclaim additional tax benefits onreinvested dividend amount.

+91 9894447881-2-3-4www.ekarup.com

In SIP, you invest a certain amount each

month in a fund.

It’s an effective way of investing in ELSS

as the concept of,

rupee cost averaging and

the power of compounding

works well.

Even if you have done your tax planning for

this year start this from 1st April 2011.

Systematic Investment Plan (SIP) in ELSS

+91 9894447881-2-3-4www.ekarup.com

Benefits of ELSS MF

Tax benefit at the Investment

You can get tax benefit under section 80 C of Income tax. Maximum limit is Rs

100000.

Shortest duration

Lock in period of ELSS is 3 year which is shortest in comparison to any other tax

saving investment. This lock in is the only difference between diversified

equity mutual fund & ELSS.

Tax free return

Any profit/ capital gain you have from ELSS is completely tax free. If you see

return from NSC & Tax saving Bank FDs they are completely taxable & added to

your income. Only PPF Offers tax- free return but it has a maturity period of 15

years.

+91 9894447881-2-3-4www.ekarup.com

Tax free dividends

ELSS schemes keeps giving dividend on regular intervals & the whole dividend

you receive is tax free.

No entry Loads (Less Expensive)

Say if you invest Rs 10000 in ELSS Scheme your complete Rs 10000 is invested

in Mutual Fund. You have to decide how much want to pay your advisor.

High Growth

Equity funds can be volatile in the short run, but have been known to beat

inflation and create wealth over the long run.

If you are looking at investing some money that you won’t need future, and are

willing to ride the ups and downs of the market, you may find ELSS an ideal tax

saving option.

+91 9894447881-2-3-4www.ekarup.com

Cont…

Type of deposit:

Two types of deposits are to be offered under the

scheme,

One providing for quarterly compounding/

reinvestment of interest (RIC scheme)

Other providing for quarterly payout of Interest

(QIC scheme) to the designated operative account of

the depositor.

Two schemes:

TDGRI (Reinvestment Type)

TDGQI (Quarterly Interest Type).

Features

+91 9894447881-2-3-4www.ekarup.com

Fixed Deposits with the bank shall be

subject to Tax Deduction at source as

per Income Tax Act 1961.

Interest on these term deposits

shall be liable to tax under the Act,

on the basis of annual accrual or

receipt, depending upon the

method of accounting followed by

the assesses.

The tax on such interest shall be

deducted in accordance with the

provisions of section 194A or

section 195 of the Act.

Tax Deducted at Source

+91 9894447881-2-3-4www.ekarup.com

Via SIP mode rather than lump sum (for cost averaging)

In GROWTH Option (for wealth accumulation)

In DIRECT Plan (to save costs & higher returns)

It is always better to invest

+91 9894447881-2-3-4www.ekarup.co

m

Make sure your tax saving

investments fulfill your needs and match

your risk profile and investment horizon.

Our Tax Savings Solutions help to

reduce your tax burden and at the same

time, aim to grow your money through

equity investments.

Section 80C of the Income Tax Act,

1961 provides options to save tax by

reducing the taxable income by up to 1

lakh. But, wealth creation is also

important.

+91 9894447881-2-3-4www.ekarup.com

May invest your money in a better way

Contact Us

Coimbatore :+91 9894447881(Corporate Office) [email protected]

Chennai : +91 [email protected]

Madurai : +91 [email protected]

Pondicherry : +91 [email protected]

For more information, please visit us at

www.ekarup.com