Wealth creating using various financial products like Mutual funds, Shares, Secondary market Bonds, Health Insurance,General Insurance and Life Insurance. How to use Mutual Funds to safe guard your fund against inflation, create Wealth and Save Tax. Other services offered are Income Tax and GST consultancy and return filings.
Wednesday, April 16, 2025
ELSS Funds vs NPS: Key Differences
ELSS Funds come with a lock-in period of just three years. After this period, you can withdraw your entire investment along with any returns earned during this time. This makes them a relatively short-term option for tax savings and potential wealth growth.
On the other hand, NPS (National Pension System) is primarily designed for long-term retirement planning. While partial withdrawals are allowed before the age of 60—up to 25% of your contributions—this is only permitted for specific purposes like medical emergencies or your children’s education. However, it's important to note that you can only withdraw up to 25% of your own contributions, not the entire account balance.
Upon reaching retirement, you can withdraw 60% of your accumulated corpus tax-free. The remaining 40% must be used to purchase an annuity, which provides you with regular payouts throughout your retirement.
Paying rent above ₹50,000/month? A must-know tax rule!
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If you're paying more than ₹50,000 per month as rent to your landlord (whether you're a salaried individual or not), the Income Tax Department expects you to deduct TDS (Tax Deducted at Source) under Section 194IB.
🔹 TDS @ 5% needs to be deducted from the total annual rent.
🔹 This must be deposited with the government using Form 26QC.
🔹 You also need to issue Form 16C to your landlord.
👉 Failure to do so? You may be treated as an assessee in default—which could lead to penalties and interest.
💡 Even if you're not a business owner or salaried person, this rule applies if your rent exceeds ₹50,000/month.
✅ Stay compliant. Avoid unwanted surprises from the tax department.
Monday, April 14, 2025
NRI’s capital gains on MF units sale can’t be taxed in India’
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For Mutual Fund NRI investors, this is a significant positive that you should note
Now, Capital Gains on MF Units can't be taxed in India under the tax treaties with specific countries like Singapore, UAE, Mauritius Netherlands etc.
This is an article in TOI, where the ITAT has passed this Order and hence no tax is payable in India for this Singapore resident on her short term and long term capital gain both from debt and equity mutual funds. It is taxable only in the country of residence (Singapore in this case)
Significant Positive for NRI MF investors!
THE POWER OF COMPOUNDING THE EIGHTH WONDER!
There was once a king in India who was a big chess enthusiast and had the habit of challenging wise visitors to a game of chess. One day a travelling sage was challenged by the king. As it turned out, it was one of those rarest occasions where the king lost the game. While the king was certainly disappointed, he was also pleased at the wise man's intellect.
To reward the sage's achievement, the king offered him any reward of his choosing. The sage modestly asked just for a few grains of rice in the following manner the king was to put a single grain of rice on the first chess square and double it on every consequent one. The king was astonished at such a modest request, but accepted it at the sage's behest.
The king ordered a bag of rice to be brought to the chess board. Then he started placing rice grains according to the arrangement: 1 grain on the first square, 2 on the second, 4 on the third, 8 on the fourth and so on.
Following the exponential growth of the rice payment, the king quickly realised that he was unable to fulfil his promise because on The twentieth square the king would have had to put 1,000,000 grains of rice. On the fortieth square, the king would have had to put 1,000,000,000 grains of rice. And, finally, on the sixty-fourth square, the king would have had to put more than 18,000,000,000,000,000,000 grains of rice which is equal to about 210 billion tonnes and is allegedly sufficient to cover the whole territory of India with a metre thick layer of rice.
It was at that point that the sage told the king that he doesn't have to pay the debt immediately but can do so over time. And so the sage became the wealthiest person in the world.
Lessons from this story
What may seem insignificant, with the benefit of compounding can yield unimaginable results. Apply this concept to your investments start early, remain disciplined, stay patient attain financial independenc
e!
Friday, April 11, 2025
CAS on Digilocker
📲 Track ALL Your Mutual Fund Investments in One Place – Now on DigiLocker! 🧾
Great news for investors!
DigiLocker is now integrated with CDSL & NSDL, India’s top depositories.
That means you can now access: ✅ Demat MFs
✅ Non-demat MFs
✅ All SEBI-regulated assets
...in ONE place!
🔍 How to check your holdings:
1️⃣ Open the DigiLocker app
2️⃣ Search for “Central Depository Services Ltd” or “NSDL”
3️⃣ Enter your Demat number & PAN
4️⃣ In 2-3 minutes, your latest CAS statement will be available
5️⃣ Use your PAN number as the password to open the PDF
💡 Bonus Tip:
Store this in your DigiLocker & ask family members to do the same.
➡️ Add a nominee to DigiLocker for smooth succession planning.
No confusion. No chaos. All records, safe and accessible. ✅
📤 Share this with your clients, family & friends. This is a game-changer!
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