Risk-averse investors often prefer buying low-beta stocks, whose returns are ideally more stable than high-beta shares While low-beta in the financial world is often synonymous with safety but boring returns, in the year that has seen equity market rallying over 20%, as many as 24 low-beta stocks in the BSE 100 index outperformed the index itself as on September 22. In comparison, just 21 high-beta stocks beat the benchmark, shows a DNA Money analysis. Risk-averse investors often prefer buying low-beta stocks, whose returns are ideally more stable than high-beta shares….
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Tax saving tips for the new financial year
Want your investments to make money as well as save tax for you? Anil Rego has some advice The advent of the new financial year brings forth with it the desire to invest wisely and the resolution to save more tax. So, the time is ripe to educate yourself on the tax savings investment options that are available. Here are few tax-saving investment options: Section 80 C The combined limit of investing in tax saving instruments under section 80 C is Rs 150,000. There is a plethora of investment options…
Read MoreWhat are tax-free bonds and how they work
Indian investors seem to be spoilt for choice when it comes to investing. From investment schemes offering monthly, quarterly, half-yearly as well as annual returns, to schemes offering taxable as well as non-taxable returns, the list is endless. Choosing the right investment avenue, therefore, may not be as easy as it appears. One of the hugely-popular investment options, especially among high net worth investors, is tax-free bond. Let’s see what these bonds are and how they work. What are they: A bond is a fixed income instrument carrying a coupon…
Read MoreInvest smartly while making last-minute tax planning moves
Taking advantage of tax deductions for investment under section 80C of the Income Tax Act must start with a list of investments already made to avoid unnecessary over investing for tax deduction. The benefits from tax deductions are provided on a specified range of investments made during a financial year. Time is running out for making investments for the financial year 2016-17, with barely three weeks left. Considering the very limited time available to the taxpayer a warning is warranted – most investments made for tax deductions during the last…
Read MoreLast minute Tax Planning guide
guest: Hello Sir,in my Form 16 I show Rs.150000/- deposited in ELSS fund but actually I deposited Rs.150000/- in my PPF account , is it make any punishment if I file return and get 80C deduction? please must answer. Anil Rego: First you have to confirm the assessment year. if it is for FY2016-17 then , you can ask the concerned department for rectification. if it is for FY2015-16 , then already form 16 would have been generated and further rectification is not possible. if scrutiny comes, explanation should be…
Read MoreDummy’s guide to tax-filing documents
Though the process is not tedious, it still saves time if one has all the proofs of these documents ready for submission, says Anil Rego. The hustle and bustle of the New Year has not yet completely engulfed us. We are still settling in the New Year. We may still be dreamy eyed and viewing this year with rose tinted glasses! Sorry to break into your La La Land, but we want to talk about income tax and the related documents to be submitted! Immaterial of if you are salaried…
Read MoreEight strategies to manage your money that can help you get rich faster in 2017
By now, you must have made your financial resolution for the New Year. But wealth accumulation often takes a little bit more than just planning. Going by the books, the right asset mix is considered the main foundation for wealth creation. So, if you are dreaming of accumulating wealth over time, you should opt for proper financial planning and go for a mix of equities and debt instruments. Financial planners suggest eight key steps to financial planning and wealth creation in the Indian context, given the current equilibrium in the…
Read MoreLast minute scramble? Five mistakes to avoid when choosing tax-saving products
Understand that tax planning is only a small component of your overall financial portfolio For most salaried individuals, the December-January period is usually the time when their employers ask for proofs of investments for the financial year (FY). Ideally, you should do your tax planning at the beginning of the FY and then invest throughout the year. But if you are one of those who are scrambling to complete your tax planning process and trying to meet the deadline, here is a list of mistakes you should avoid while taking…
Read MoreHow ‘Tax –free’ is the Freelancer?
While the salaried hurry and submit papers on proof of investments for tax benefits before the deadline, freelancers have a different story to tell. The salaried have the employers communicate all the rules and roll out facilities that enable them file their taxes with ease. Freelancers do all the legwork when it comes to filing their taxes but enjoy comparatively higher benefits and advantages. In truth, Freelancers have the best of both the worlds. Here’s how they claim the tax – saving deductions available to salaried individuals and the…
Read MoreMistakes to avoid while doing tax planning in 2017
Tax planning is not about saving taxes but it is an important part of overall financial planning and should ideally be planned throughout the year. But unfortunately, we all consider it one time activity which we undertake generally in the last three months of the financial year without giving much thought on how it is going to impact our overall finances. “One of the biggest investment errors we make during pressing times is to invest just to avail the tax deductions. Do not therefore make any investment just for the…
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