Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Thursday, 29 May 2014

Tax Free Interest Benefits

Download Tax Saving Mutual Fund Application Forms

Invest In Tax Saving Mutual Funds Online

Buy Gold Mutual Funds

Leave a missed Call on

94 8300 8300

 

Check for ceiling on your tax free interest benefits

 

 The risk here is that in the process of earning tax free returns the actual yield of rate earned for the individual could be going down


 

When it comes to the question of tax free interest there are two ways in which these would be available as a benefit for the individual. There can either be a limit that is set upto which specific types of interest would not have any tax levied on them or it could that there is no such limit present. The individual has to check if the instrument where they are making the investment has any limit present and then they should make their respective calculations. Here is a closer look at the issue along with some of the instruments where this is available and how the investor can deal with them.

 

Tax free limit

 

There are some instruments that are present where the income earned is tax free but there is a limit to which this would be applicable. The manner in which this works is that upto the limit specified there is no tax on the interest but once the figure crosses this limit then the amount would be added to the taxable income of the individual. One such area where the interest is tax free to a limit is the savings bank account. In case of this account the interest earned during the year upto Rs 10,000 is tax free and if the income is above this level then the additional amount would be taxed. This would ensure that the individual does some planning to ensure that there is enough interest generated from the savings account that can reach up to this limit. The risk here is that in the process of earning tax free returns the actual yield of rate earned for the individual could be going down. The other area where there is a limit that the individual would experience is that with the post office savings account interest. Here the amount that is tax free is only Rs 3,500 for an individual where the account is in an individual name and Rs 7,000 where this is a joint account. This means that keeping too much money in the post office savings bank account might not be wise as the excess return would end up getting taxed in the hands of the individual.

 

Tax free without limit

 

There are other options where the individual would get the benefit of tax free income but there would not be any limit on the amount of income that could be earned this way. This is one of the best options for the individual in the sense that they do not have to worry about the extent of the figure that is actually earned from this particular area. This would ensure that someone who has a large amount of corpus can actually plan their finances in such a manner that they would end up with a large part of tax free income. This is significant in the sense that there is a large amount of freedom for the individual to plan their finances in a proper manner. There are a lot of tax free infrastructure bonds that are being launched since the last few years and these are the instruments where the individual would not have to worry about the amount that they invest in these bonds as well as the amount of income that is actually earned from these. This is because there is no limit to the extent that would actually be tax free in the hands of the individual and hence this gives a lot of leeway to them about the amounts that they actually want to channelize in this area. The problem with the tax free bonds is that they might not be available for investment when required if a new issue is not open or that there is not much liquidity available in the secondary markets.

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

Leave a missed Call on 94 8300 8300

Leave your comment with mail ID and we will answer them

OR

You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
      4. Birla Sun Life Front Line Equity Fund
      5. Franklin India Prima

C. Mid and SmallCap Funds Invest Online

      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
      5. Birla Sun Life Dividend Yield Plus
      6. SBI Emerging Businesses Fund
      7. HDFC Mid-Cap Opportunities Fund
      8. ICICI Prudential Discovery Fund

D. Small and MicroCap Funds Invest Online

      1. DSP BlackRock MicroCap Fund

2.Franklin India Smaller Companies

E. Sector Funds Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
      3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

      1. DSP BlackRock Tax Saver Fund
      2. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
      4. Birla Sun Life Gold

H. International funds Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF

No comments:

Post a Comment

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Popular Posts