#Invest in NPS Account through SIP

[slnconsultancy]

How to Integrate PF with Other Financial Planning Tools

SLNPFConsultancy #SLNESIConsultancy #SLNPFESIConsultancy #PFConsultancyHyderabad #BestPFConsultancy

A Provident Fund (PF) is a government-mandated retirement savings scheme designed to help employees accumulate a corpus for their post-retirement years. While contributing to PF is crucial for long-term financial security, it’s equally important to integrate it with other financial planning tools for a holistic approach to wealth management. Combining PF with other investments and financial strategies can maximize returns, minimize risks, and ensure that you achieve your financial goals.

Here’s how you can effectively integrate your PF with other financial planning tools:

Assess Your Retirement Needs Before integrating PF with other financial tools, it’s essential to understand your retirement needs. Start by calculating the amount you’ll need for a comfortable retirement, taking into account inflation, lifestyle expenses, and medical costs.

Use a Retirement Calculator: This tool can help you determine how much you need to save based on your current age, expected retirement age, and desired post-retirement income. PF Contribution: Once you have your retirement goal, calculate how much of that goal will be covered by your PF contributions. The Employee Provident Fund (EPF) offers a fixed interest rate, which helps grow your corpus over time. However, relying solely on PF might not be sufficient for a comfortable retirement, making it crucial to combine it with other investment tools.

Link PF with Pension Plans While PF provides a lump sum at the time of retirement, integrating it with pension plans ensures a regular income stream during retirement.

National Pension System (NPS): NPS is a government-sponsored pension scheme that offers tax benefits and allows you to create a diversified portfolio by investing in equities, corporate bonds, and government securities. The combination of PF and NPS ensures both a lump sum amount and regular income post-retirement. Atal Pension Yojana (APY): This government-backed scheme provides pension benefits, which can be a useful addition to PF, especially for individuals in the lower-income bracket. It offers a guaranteed pension based on contributions. By combining PF with NPS or APY, you can create a balanced post-retirement income structure, mitigating the risk of outliving your savings.

Combine PF with Mutual Funds Mutual funds offer flexibility, diversification, and potentially higher returns compared to traditional savings schemes. While PF is a low-risk, fixed-income tool, adding equity-oriented investments like mutual funds can help accelerate wealth accumulation.

Systematic Investment Plans (SIPs): A SIP in mutual funds allows you to invest a fixed amount regularly, which can grow over time. Since PF predominantly grows through fixed interest rates, SIPs in equity mutual funds can help combat inflation and provide higher returns. Balanced Funds: These funds invest in both equities and fixed-income securities, providing growth and stability. By investing in balanced funds, you can bridge the gap between the safety of PF and the higher risk-reward of equity markets. Integrating PF with mutual funds ensures that you have both stability and growth in your financial portfolio.

Leverage Tax-saving Instruments PF contributions are eligible for tax benefits under Section 80C of the Income Tax Act. However, you can maximize tax benefits by integrating PF with other tax-saving tools.

Public Provident Fund (PPF): PPF is a long-term savings scheme that offers tax-free returns. While both PF and PPF fall under Section 80C, investing in PPF can further boost your retirement corpus, given its safety and tax-free interest. Equity-Linked Savings Scheme (ELSS): ELSS mutual funds offer tax benefits under Section 80C and have the potential to generate higher returns than PF. While ELSS carries a higher risk due to its equity exposure, its lock-in period of three years is shorter compared to PPF, making it an attractive option for long-term growth. By diversifying your portfolio with tax-saving tools, you can reduce your tax liability while growing your wealth.

Utilize Health Insurance Plans Retirement planning is incomplete without factoring in healthcare costs. Medical expenses can significantly drain your retirement savings if not planned for in advance.

Health Insurance Plans: While PF and pension schemes help cover your living expenses, a robust health insurance plan ensures that unexpected medical bills don’t erode your retirement corpus. Critical Illness Insurance: In addition to regular health insurance, consider purchasing a critical illness plan that provides a lump sum payout upon diagnosis of severe illnesses like cancer or heart disease. This can protect your PF savings from being depleted due to medical emergencies. Integrating health insurance with your PF contributions provides financial security against unforeseen healthcare costs during your retirement years.

Real Estate and Gold as Diversification Tools Diversifying your investments is critical for managing risk. Along with PF, real estate and gold can be valuable tools to diversify your financial portfolio.

Real Estate: Investing in real estate offers rental income and long-term appreciation. Post-retirement, rental income can serve as an additional source of cash flow, supplementing the income from PF or pension schemes. Gold Investments: Gold has historically been a hedge against inflation and market volatility. Including gold in your portfolio, whether through physical gold or digital gold investments, can add stability and act as a store of value. Real estate and gold provide diversification beyond financial instruments, balancing your overall financial risk.

Create an Emergency Fund Your PF contributions are primarily for retirement, but it's important to have an emergency fund for unforeseen financial setbacks.

High-yield Savings Account: Keeping your emergency fund in a high-yield savings account or a liquid fund allows easy access while earning moderate returns. This ensures that your PF remains untouched for retirement purposes. Fixed Deposits (FDs): FDs are another safe option for an emergency fund. While they don’t offer high returns, their safety and liquidity make them reliable for unexpected financial needs. Having an emergency fund ensures that you don’t have to dip into your PF or long-term investments for immediate expenses.

Conclusion Integrating PF with other financial planning tools like pension schemes, mutual funds, tax-saving investments, health insurance, and real estate provides a well-rounded approach to financial planning. While PF offers safety and guaranteed returns, these additional tools ensure diversification, tax efficiency, and protection against risks like inflation and medical emergencies. With a holistic financial strategy, you can build a robust retirement corpus and achieve financial security for your golden years.

[integratedindia]

Understanding Financial Services in India: A Beginner's Guide

In today's fast-paced world, understanding the various financial services available in India is crucial for making informed decisions about managing your money. Whether you are looking to invest in mutual funds or secure your future through insurance, having a basic understanding of key financial services can help you navigate the complex world of finance. In this beginner's guide, we will explore different aspects of equity in demat, mutual funds, systematic investment plan (SIP), life insurance, health insurance, National Pension System (NPS), margin trading facility (MTF), IPO, fixed income, corporate services, tax services, and gold bonds.

Demystifying Equity in Demat Accounts

When it comes to investing in the stock market, demat accounts play a crucial role in facilitating the buying and selling of securities. A demat account, short for dematerialized account, is a digital account where investors can hold shares and other securities in electronic form. Opening a demat account is a seamless process offered by various financial services companies in India. It provides a secure and efficient way to trade equities without the hassle of physical certificates.

Transitioning from traditional paper-based trading to electronic trading through demat accounts offers several advantages, such as:

Convenience: Investors can access their holdings anytime, anywhere through online platforms.

Safety: Eliminates the risk of loss, theft, or damage to physical share certificates.

Speed: Instant transfer of securities during transactions.

Leading financial consulting firms in India can guide you through the process of opening a demat account and making informed investment decisions.

Navigating the World of Mutual Funds and SIP

Mutual funds are popular investment options that pool money from multiple investors to invest in a diversified portfolio of securities. A Systematic Investment Plan (SIP) allows investors to regularly invest a fixed amount in a mutual fund scheme. This disciplined approach to investing offers the following benefits:

Rupee Cost Averaging: Buying more units of a mutual fund when prices are low and fewer units when prices are high.

Compounding: Earning returns not only on the principal amount but also on the accumulated earnings.

Financial planning services in India often recommend mutual funds and SIPs as suitable investment vehicles for long-term wealth creation and achieving financial goals.

Securing Your Future with Life and Health Insurance

Life insurance and health insurance are essential components of a comprehensive financial plan. Life insurance provides financial protection to your loved ones in case of your untimely demise, while health insurance covers medical expenses in the event of illness or injury. Understanding the different types of insurance policies and their benefits can help you make informed decisions about protecting your financial well-being.

Investment advisory companies in India offer guidance on selecting the right insurance policies based on your specific needs and financial goals. Having adequate life and health insurance coverage ensures peace of mind and financial security for you and your family.

Planning for Retirement with the National Pension System

The National Pension System (NPS) is a voluntary retirement savings scheme designed to provide regular income during old age. Managed by the Pension Fund Regulatory and Development Authority (PFRDA), NPS offers tax benefits and investment options across asset classes such as equity, corporate bonds, and government securities. By contributing towards NPS, individuals can build a retirement corpus and secure their financial future.

Best financial advisory services in India can help individuals understand the features of NPS, calculate retirement goals, and make informed decisions about pension planning. Consulting with experts in investment consultancy can optimize your NPS contributions and maximize your retirement benefits.

Exploring Margin Trading Facility and IPOs

Margin Trading Facility (MTF) allows investors to buy securities by borrowing funds from a broker. This leveraging technique magnifies both gains and losses, making it a high-risk strategy suitable for experienced investors. Engaging in margin trading requires a thorough understanding of market dynamics, risk management, and margin requirements.

Initial Public Offering (IPO) is the process through which a company offers its shares to the public for the first time. Investing in IPOs can provide opportunities for capital appreciation and participation in the growth of promising companies. However, IPO investments come with risks, including market volatility and uncertain pricing.

Financial consultancy services in India can guide investors through the intricacies of margin trading, IPO investments, and risk mitigation strategies. By seeking advice from the best investment advisory firm in India, investors can make well-informed decisions about participating in these financial instruments.

Gold bonds are government securities denominated in grams of gold, providing an alternative investment avenue for those seeking exposure to the precious metal. Investing in gold bonds offers capital appreciation potential along with periodic interest payments.

Financial service provider companies in India offer a wide range of investment options, including fixed income products, corporate services, tax planning, and gold bonds. By diversifying your investment portfolio across different asset classes, you can reduce risk and enhance returns over the long term.

In conclusion, understanding the various financial services available in India is essential for achieving your financial goals and securing your future. By seeking guidance from the best financial advisory services in India, you can make informed decisions about investments, insurance, retirement planning, and wealth management. Integrated Enterprises (India) Pvt. Ltd. is a leading financial service provider offering comprehensive solutions to meet your financial needs. For expert advice and personalized financial planning, contact Integrated Enterprises at 180042523456 or email customercare@integratedindia.in.

[amnashareefsworld]

What are the Most Popular Tax Saving Investments in India

We pay taxes on income and expenses as responsible citizens of India. It helps the government to perform civil operations and launch welfare schemes. However, you can choose tax-savings instruments to reduce this burden. For instance, you can claim deductions under Section 80C of the Income Tax Act, 1961. Under Section 80C, you can enjoy a rebate of ₹1.5 lakhs per financial year. The best time to invest is in the early quarters. This allows enough time to plan and optimize the returns.

A ‘tax’ component can eat into a prominent part of your savings. This can keep you from catering to the increasing needs of your family. However, by purchasing tax-saving investments at the right time, you can significantly reduce your taxable income under various sections of the IT Act 1961.

Have a look at the popular instruments.

Mutual Funds

These are one of the most popular tax-saving schemes in India. For example, investment in equity-linked savings schemes (ELSS) makes you eligible for exemptions under Section 80C. ELSS comes with advantages such as a shorter lock-in period, flexibility and benefits of professional fund management.

There are many benefits of mutual fund investments. Along with tax-savings, they offer a chance to receive capital appreciation and help you reach your financial goals.

Retirement Funds

Any contribution towards pension plans is tax exempted up to ₹1.5 lakhs under Section 80CCC. This includes investments both towards buying a new plan or renewing an old one. Further, Section 80CCD (1) of The Income Tax Act, 1961 provides exemptions to tax payers who contributes to the national pension scheme (NPS). Both salaried and self-employed people can benefit from this scheme. Another option is respect to retirement funds which offer tax benefits is the Senior Citizen Saving Scheme (SCSS).

PPF Investments

The PPF is a long-term tax-saving investment, which provides exemption upto ₹1.5 lakhs on investment made in a financial year under Section 80C. The interest earned every year is exempted from taxation as well. Moreover, the entire corpus accumulated at maturity is tax-free. This makes PPF one of the most preferred tax saving schemes in India.

CPSE Exchange Traded Funds (ETF)

Finance Minister Nirmala Sitharaman announced that the government will launch the Central Public Sector Enterprises (CPSE) related exchange-traded fund (ETF) in a tax-saving mutual fund scheme format in the Budget 2019 speech. So, investing in ETFs can assure tax deduction under Section 80C of the Income Tax Act. The tax efficiency is similar to ELSS schemes or sometimes more. . Learn about this tax-saving scheme in India from your financial advisor for an informed choice.

Tax Saving Fixed Deposit (FD)

A tax saving FD offers deduction under Section 80C of the Income Tax Act, 1961. Investors can claim an allowance of ₹1.5 lakhs per annum. The terms, conditions, and features are mostly similar to normal FD accounts. They are the safest option and ensure capital protection against market volatility.

If you are choosing to invest in mutual funds through the SIP mode, consider an SIP mutual fund calculator to estimate the returns. You can also get an idea of the future value of the funds. Further, make sure your goal is simply not towards saving tax. It should also be investing in the best instrument for an impressive ROI.

[wizelywizeup]

Explained: What Are ELSS Mutual Funds?

When we invest our money, we look for investment opportunities which can help us generate wealth, get regular returns and/or save taxes. While there are numerous investment schemes available in the market, most of them offer returns which are taxed according to the Income Tax rules. This is where ELSS funds step in.

Let’s look at some commonly asked questions about ELSS investments.

What are ELSS Investments?

ELSS or Equity Linked Savings Schemes are Mutual fund investment schemes that help you save income tax. That’s why they are also known as tax-saving funds.

Other than deduction benefits and the lock-in period, an ELSS is quite the same as a diversified equity fund. It invests in equity shares of companies across sectors and market capitalisations. The Income Tax Act, under section 80C, allows taxpayers to invest up to Rs.1.5 lakh in specific securities and claim it as a deduction from their taxable income.

While there are numerous investment instruments available in the market, ELSS funds are considered the most popular, because of the following reasons:

Lowest lock-in period - There are other tax-saving products available in the market like PPF, NPS or FDs and so on, however all these products have a lock in period of more than 5 years. ELSS is one such product which gives you tax benefit with just a minimum lock in of 3 years.

Tax Benefits - ELSS funds provide tax benefits of upto Rs.1.5lakhs under section 80C.

Higher Returns on Investments - With a longer investment option, you can allow your funds to grow and redeem the benefits after 3 years. Since ELSS funds invest the money in equities, the possibility of earning good returns are higher. Though other tax saving investment schemes — like the Provident Fund (PF), National Pension Scheme (NPS) and National Savings Certificates (NSC) — exist, an ELSS can offer the highest returns out of all.

How Can You Start Investing in ELSS Funds? The best way to start planning your tax-saving investments is the start of the financial year. Most taxpayers procrastinate it till the last few months of the year and end up taking hurried decisions. Besides, if you start planning early, you can save your taxes as well as fulfill your long-term goals.

You can invest in ELSS the same way that you invest in any Mutual Fund. The easiest way is through an Online Investment Services Account. You can invest either as a lump sum or via the SIP (systematic investment plan) route. SIP ensures regularity and discipline and reduces the risk to capital. You can invest as little as INR 500 in an ELSS fund. While you can claim tax benefit only up to INR 1.5 lakh, you are free to invest as much as you like.

Selecting the right ELSS funds may not be an easy task. Some ELSS may have more exposure to large-caps, while some may be more exposed to mid-cap stocks, or multi-caps. So be sure to diversify and spread your investments across multiple funds and sectors to reduce risk.

When planning taxes, investing on a regular basis avoids the outflow of a large amount of money at the end of the financial year. So if you are looking to save taxes, generating higher returns along with a lower lock-in period, then you should consider investing in ELSS funds.

Happy investing!

Source: https://wizely.in/wizeup/elss-mutual-funds-to-save-taxes

[allmoddedapk]

Paytm Money - Stocks & Mutual Funds Investment App Mod 6.6.0511 Apk [Unlocked]

New Post has been published on https://www.allmoddedapk.com/paytm-money-apk/

Paytm Money - Stocks & Mutual Funds Investment App Mod 6.6.0511 Apk [Unlocked]

Paytm Money – Stocks & Mutual Funds Investment App 6.6.0511 Mod Apk [Unlocked]

Open your account in Paytm Money and buy stocks that you love, invest in mutual funds, and prepare for your retirement with NPS in just a click.

Investment Benefits on Paytm Money:

Stocks : Equity trading is just a click away with Paytm Money, now Buying and selling stocks is simple, hassle-free, and affordable. We are here to give you the best in class trading experience with live BSE and NSE trackers.

Here’s why you need to trade on Paytm Money platform:

Competitive Pricing – We have made stock market trading affordable and accessible to every Indian with Zero Brokerage on Delivery Trading with intraday trades as low as ₹10

Simple and Smart Search – Now you don’t need to recite difficult ticker names, with Paytm Money you can discover the stock by the name.

Hassle-free Account Opening – Tired of stepping out for KYC verification to create a Demat account! Well, we solved your problem. Now you can Enjoy fully digital KYC with a 100% paperless account opening.

One App For All Needs – No more shuffling between tabs to get market information and then execute the trade. Do in-app market research, stock trading, or long term investing, all in one place. Also, research in the night and trade in the light with our dark mode feature.

Multiple investment options – Within equity space, you can invest in Large-cap, Midcap and Small Cap stock. You can also align investments to benchmark indices Nifty 50 and Sensex and also broader indices such as Nifty 100, Nifty 500.

Also, after assessing your risk profile, diversification across market capitalization would be easier and you can balance investments within multibagger stocks, penny stocks, and Blue Chip stocks.

Smart Notifications – You can also set price alerts and get notifications when stock or index has hit the price.

Customizable Watchlist – Create multiple watchlists & track real-time price changes of up to 50 stocks in each watchlist.

SIP Management – Be your own fund manager and choose what goes into your SIP. Set weekly/monthly buy orders & automate your stock investing

Stock Performance & Fundamentals – Get in-depth financial & historical price data for every listed company, research about stocks at night in dark mode, and buy them in the morning.

Investing & Trading – Do Intraday & Delivery. Explore advanced options like Cover Order & Bracket Order.

Brokerage Calculator – Discover the transaction charges & exact breakeven price to sell stocks profitably. The brokerage calculator also gives you a break down of all the charges to ensure maximum transparency.

Data Privacy – Trade securely with our bank-level data security so don’t worry about data theft or fraud.

Market holiday list – No More googling for market holiday list because BSE and NSE holidays are now available on Paytm Money.

ETFs : We have just got Exchange-Traded Funds or popularly known as ETFs onboard to suit your requirement. These are a basket of securities like stocks that track certain indices like Nifty, Sensex, and can be traded on NSE/BSE like your regular stocks.

Mutual Funds : Get upto 1% higher returns by investing in Direct Mutual Fund Schemes. Pay no commissions or any charges on buying and selling of direct mutual fund plans through Paytm Money.

Switch from Regular to Direct Plans: Investments across multiple platforms? Enjoy simple one-tap switch from platforms such as ET Money, Groww, Zerodha, Scripbox, MyCAMS, Karvy, AMCs, etc to Paytm Money at zero cost.

Invest in NPS : NPS is a smart way to accumulate a retirement corpus for yourself in an effective manner. Save additional tax on investments upto ₹50,000 and enjoy regular pension income on retirement.

Digital Gold : With digital gold offering on Paytm Money, you can now buy or sell it on the Paytm Money app in a seamless manner. We guarantee 24K 99.99% Pure gold from MMTC-PAMP.

[superdragontyrant]

ELSS

Tax saver laws in India support savers with an exhaustive range of tax saving instruments like the Public Provident Fund, Tax saving Fixed Deposits, Equity linked Saving Scheme (ELSS), National Savings Certificate and several other options. However, without the professional advice frequently individuals make poor tax saving decisions with the tax saving choices that are available.

Individuals simply do not prioritise tax-saving instruments using the same approach as they would think about other investments and it is this view that is responsible for the widespread purchase of funds that offer investment goals instead of considering tax saving instruments as a part of their overall portfolio. This approach proves expensive in the long run as valued savings which can be compounded overtime get paid in tax.

For most investors, ELSS funds make an excellent entry product, where they get a ready mix of equity investing in mutual funds. ELSS fund are an open ended equity mutual fund which offer the greatest potential of generating wealth over the long term, these can be a good means for realising long term financial goals like children’s education fund and post-retirement corpus with contributions lesser than its fixed income alternatives. ELSS has the dual advantage of Tax-saving & potential for better returns than traditional Tax-saving Investment Products, this category of Mutual Fund Schemes is a recommended must have for every investor. These ELSS funds also have the lowest lock-in phase of just 3 years amongst all the options available in Section 80C. Additionally, there is no maximum limit to invest in the ELSS mutual funds and the returns are taxed at only 10 per cent. By investing Rs 1.5 lakhs each year, you can save taxes up to Rs 46,800. After a period of three years, gain from ELSS funds will be treated as long-term gains and taxed at 10 per cent for the gains above Rs 1 Lakh.

There are two other investment options that give equity linked returns; Unit-linked Insurance Plans (ULIPs) and the National Pension System (NPS). Though, ULIPs have a longer lock in period of 5 years, coupled with high costs and less transparency. The NPS is a retirement solution rather than a pure savings one. It has only partial exposure to equity and a very long lock-in period that actually extends till retirement age. There is currently no other three year lock-in product like the ELSS offered.

A word of caution is that Equity investments have higher risk over the short term. ELSS mutual Funds do NOT provide a guaranteed return, since they invest in equity shares of companies that fluctuate in the market. When you take inflation into account, bank FDs and similar deposits turn out to be sub-optimal because of inflation. If you are investing for the long term and age is on your side, you should never invest into guaranteed returns on your investments which typically offer a lower rate of interest.

Since the mandated lock in for ELSS Funds is 3 years. Experts suggest that you should invest in them with a minimum time duration of 5 to 7 years. Stock markets are very cyclical in nature and if your lock-in period finishes in a bear market or recession, then you will end up booking a loss. Hence in such situations it is recommended to stay invested in these funds for longer durations where the risk of investment is considerably lower and exit during a bull market. ELSS funds enforce a hard lock in, and so you cannot redeem funds from them before the 3-year lock in period has been completed.

To simplify your tax annual tax saving approach consider investing in an ELSS through a monthly Systematic Investment Plans (SIPs) through the year, this has advantages: first, they protect your investments in a market downturn, and second, you avoid making a quick lump-sum investment in March. Hence do not postpone your investment to the last quarter or month of the financial year in ELSS mutual funds. High valuations in the equity market at that time, if any, may cost you extra for the ELSS fund units. While investing in ELSS; instead of opting for the dividend option, opt for the growth option to benefit from the rule of compounding. Dividends are also taxable at the hands of investors as per their tax slab.

A general rule of thumb is to opt for the SIP option to spread your investments across the year and benefit from cost averaging during any market correction in the year. The minimum amount of SIP allowed for investing in an ELSS mutual fund is only Rs 500. A suitable practice for your tax saving plan is at the beginning of every financial year, estimate the amount you have left over after the Rs 1.5 lakh limit once legal deductions are made; divide this by twelve and start an SIP. Keep tax saving and investing simple to reap the benefits of investing over the long term !

The information, analysis and opinions expressed herein are for education purposes only and are not intended to provide specific advice or recommendations. This material is not an offer, solicitation or recommendation to purchase any financial products or services. Always remember that all investments carry some level of risk, including the potential loss of principal invested.

[integratedindia]

investment with Integrated Enterprises

Integrated Enterprises (India) Pvt Ltd is a leading financial advisory companies in india, dedicated to helping you achieve your financial goals. We offer a comprehensive selection of investment and insurance products. Open a Demat and trading account to trade stocks or invest in Mutual Funds through SIP, a convenient method for regular investing. Secure your future with life and health insurance plans tailored to your needs. We also provide the National Pension System (NPS) for retirement planning and the Margin Trading Facility (MTF) for experienced traders looking to leverage their investments. Invest in upcoming IPOs through our user-friendly platform. Let Integrated Enterprises (India) Pvt Ltd be your partner on your path to financial security.

[india24x7news-blog]

To make India an 5 Trillion Dollars country, Nirmala Sitharaman  Builds Next generation banks by merging 10 Banks.

Nirmala Sitharaman has said that it is necessary to have next generation banks in the coming five years to make the country an economy of five trillion dollars. Union Finance Minister Nirmala Sitharaman announced merger of 10 state-owned banks in the country. After this Mahavilaya, 12 government banks will survive from the existing 27 public banks. This merger will affect the customers who will have savings account or fixed deposits in these banks. Customers may have to change the checkbook first and then many more changes. New Delhi : - The Finance Minister has announced the merger of 10 banks, after which only 12 state-owned banks will be left in place of the existing 27 banks. This bank of banks will have a big impact on the customers who have savings accounts or fixed deposits in these banks.

To make India an 5 Trillion Dollars country, Nirmala Sitharaman  Builds Next generation banks by merging 10 Banks. India 24x7 News The Finance Minister said in a press conference here on Friday that after the merger the number of state-run banks will be reduced from 27 to 12. Six small state-run banks have already merged with State Bank of India and Vijaya Bank, Dena Bank and Bank of Baroda. Thus, after the merger of SBI and Bank of Baroda, 10 state-run banks have already transformed into two big banks. Nirmala Sitharaman has said that it is necessary to have next generation banks in the coming five years to make the country an economy of five trillion dollars. Let us talk about the effect of these mergers : - 1. Must change checkbook First of all, get ready to change your checkbook, because many banks are going to merge. Although existing checkbooks are valid for some time, they eventually have to be replaced by the check book of the bank the bank merged with. 2. Change in Account Number, Customer ID You can get a new account number and customer ID. Make sure that your email address and mobile number are updated with the bank, so that you can get instant information about any change. All your accounts will be tagged with an ID. For example, if you have an account with Vijaya Bank and another Dena Bank, a customer ID will be allotted for both accounts. 3. Update details with third parties Customers who have been allotted new account numbers or IFSC codes will have to update these details with various third party entities. These include Income Tax Department, Insurance Companies, Mutual Funds and National Pension System (NPS). 4. New ECS, SIP Instructions After the merger, the entity must clear all Electronic Clearing Service (ECS) instructions and post dated checks. Contact your bank, fund house and insurance company and issue new ECS instructions. If needed, you have to fill the ECS related form online or through your branch. For Auto Debit or Systematic Investment Plan (SIP) you may have to fill a new SIP registration and instruction form. The same will have to be done for the EMI of the loan. 5. Local branch may be closed Some branches of the bank may be closed and customers may have to move to a new branch. For example, your existing home branch may be closed when the acquiring bank has its own branch nearby. Keep in mind the new IFSC and MICR codes applicable to your branch as you will need these for fund transfers and other financial transactions. Bank of Baroda, Dena and Vijaya Bank merger approved Finance Minister Nirmala Sitharaman, while talking about new merger in banks, said that the ability to give loans from big banks increases. The merger of Punjab National Bank, Oriental Bank of Commerce and United Bank will make it the second largest bank in the country. The bank, formed by the merger of PNB, Oriental Bank of Commerce and United Bank, will have a turnover of Rs 17.95 lakh crore and will have 11,437 branches. The Finance Minister said that Canara Bank and Syndicate Bank will merge and this will make it the fourth largest public sector bank with a turnover of Rs 15.20 lakh crore.   A new bank consisting of three banks will start next year At the same time, with the merger of Union Bank, Andhra Bank, Corporation Bank, it will become the 5th largest public sector bank in the country. Its total business will be Rs 14.59 lakh crore. On the other hand, merger of Indian Bank and Allahabad Bank will make it the 7th largest public sector bank with a turnover of Rs 8.08 lakh crore. Read the full article

[taxolawgy123]

How to save income tax in India?

How to save income tax in India?

Often, people end up paying taxes more than they should because of lack of awareness. If you file your own taxes it is quite possible that you might commit the same mistake. This blog discusses the best tax saving funds in India and different ways of how to save income tax in India.

ELSS  Mutual Funds

This remains the best tax saving mutual funds in India despite the introduction of the tax on long-term capital gains from equity funds. The 10% of the tax is applicable only on the gains beyond Rs 1 lakh. Routine collection of capital gains can decrease the liability to a great extent. It also provides the highest returns among other 80C options. ELSS funds have the lowest lock-in of about 3 years and the return of the past three years has been 9.78%.

There are other problems present as the Equity markets were unpredictable last year and 2019 may not be any different. The economy has slowed down. This should not worry the long-term investors who stagger their purchases and average out their costs through monthly SIPs. But the SIP window is not applicable for taxpayers who have to show proof of Section 80C tax-saving investments in a few days.

“A lot of taxpayers are eager to invest in ELSS funds but we don’t want them to invest recklessly. If a first-time investor loses his/her money, they remember it for a lifetime and would stay away from the equity for a long time.” Says Shweta Jain, CEO, and Founder, Investography a Bengaluru – based financial advisory firm. She advises taxpayers to not put a large sum into ELSS funds at one go, distribute it over 2-3 tranches before the 31st March deadline.

It should be noted that the risk is equal with all ELSS funds. Some invest more in small and mid-cap stocks while others invest more in large-cap ones. As the ELSS provides numerous benefits, it is currently the best tax saving mutual funds in India.

The best ELSS funds

TURBO-CHARGED National Pension Scheme

At the time of retirement, 60% of the corpus is tax-free. People can keep investing in NPS until the age of 70. They can also stagger their withdrawals.

Additionally, investors can also allocate 75% to investments in the active choice option of the National Pension Scheme. Even though short-term returns may not seem very beneficial, in the long run, investors earn double-digit returns. Return of NPP has been 10.84% in the past five years.

“According to experts, NPS is the better alternative to PPF and bank deposits.”

National Pension Scheme helps people save income taxes in 2 ways:

People can declare contributions of up to 1.5 Lakh INR as a deduction under section 80C.

Furthermore, 50,000 INR can be deducted under 80 CCD(1b), Employers can deposit 10% of the salary of employees in NPS. The capital will not be taxable.

Public Provident Funds (PPF)

PPF funds is a savings fund provided by the Indian Government. The government pays the interest. The interest rate for PPF is 8 %.

In PPF helps save income tax by making the interest completely tax-free. Whereas in fixed deposits interest is taxable. Thus, advisors prefer PPF over fixed deposits. Public provident funds are also an easy investment and score high in terms of safety.

You can easily open an account in any post office branch. Some private banks also offer PPF.

Tax deductions for employed workers:

The income tax department allows multiple income tax exclusions for salaried employees. This proves to be very effective in saving taxes. To avail these benefits, workers have to inform their employers in advance.

The various income tax exclusions for salaried workers are listed below:

HRA exemption for salaried employees.

Income tax exemption on leave travel allowances.

Exception on encashment of holidays for salaried employees.

 4.Tax exemption from pension income.

IT exemption on gratuity for salaried employees.

Income tax exemption on VRS received.

IT exemption for perquisites.

Exemption of various allowance.

Loans to claim tax deductions

Home loans are a great way to save taxes. Under section 24, not only the principal repayment but also the interest is tax-free.

For self-occupied homes, the tax deduction limit is INR 2 lakhs. Although, if the property is rented out the interest goes tax-free. Moreover, first-time owners get additional INR 50,000 reduced under section 80E.

Higher education is increasingly becoming expensive. Education loans that are taken for spouses, offspring, or for students whose guardians are taxpayers are eligible for tax-free interest under section 80E. This reduces a huge burden on taxpayers. The loans must be taken from either a charitable or financial institute.

Health Insurance

A simple way of saving income tax is through buying health insurances. Tax deductions can be made on the premium of the health insurances under section 80D. If you pay health insurance for yourself or for dependent family members the tax reduction is around 25,000 INR. For senior citizens, the tax reduction is 50,000 INR. If you pay a premium for dependent senior citizens then you receive an additional tax reduction of 50,000 INR. In this manner, you can save 1 lakh INR in tax reductions.

These are the easiest and most profitable ways in which you can save income tax and enjoy your rights while exercising your responsibilities simultaneously. Make sure before you invest anywhere you consult an expert to ensure your investment is safe.