Tax Refunds

Tax Saving in haste can be detrimental later

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View quick summary A salaried person gets a fair idea about his total income at the beginning of the financial year. That’s the best time to start planning your tax-saving investments. Unfortunately, people tend to procrastinate these crucial financial decisions till it is very late. In the process, they sacrifice returns or safety, or both, when they buy in a rush. Worse, they … [Read more...] about Tax Saving in haste can be detrimental later

Retirement Planning through Reverse Mortgage

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View quick summary Reverse mortgage your home for next 15 years after retirement and get tax free monthly cash flow from banks/Housing Finance Companies to cover regular expenses. This is the opposite of taking a home loan at the time of purchase or construction of home. You can live in the house for life. You need not repay the loan amount. The legal heir may get the house … [Read more...] about Retirement Planning through Reverse Mortgage

Interest is fully taxable

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View quick summary All income needs to be reported, whether exempt from income tax or not. Interest earned on bank accounts (savings and FD) are generally not reported due to misconception. Interest income, including accrued interest on NSC is taxable. Money received due to compulsory acquisition of land is also taxable. Even the rent received from cell phone tower on roof of … [Read more...] about Interest is fully taxable

Retirement planning through dividends

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View quick summary Dividend is tax free in individual’s hands but it is not regular. If you have surplus funds, you should invest them in mutual funds and get tax-free income from dividends. For emergency funds requirement you can sell a part of your portfolio, money gets credited in your account within 2 days. The risk of investment in equity versus keeping in fixed deposit … [Read more...] about Retirement planning through dividends

Tax Saving with the help of parents

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Invest in their name if they are in a lower tax bracket: Every adult enjoys a basic tax exemption limit. For senior citizens (above 65 years), the basic exemption limit is Rs 2.4 lakh a year. If any or both of your parents do not have a high income but you have an investible surplus, you can avoid tax by transferring money to them which can then be invested in their name. There … [Read more...] about Tax Saving with the help of parents