TallyPrime Auditor License (Renewal) (Multi User)   TallyPrime
Gold
Renewal

  TallyPrime Silver Renewal (Single User)   TallyPrime Silver New Licence (Single User)   TallyPrime Gold New Licence (Multi User)   Purchase
Tally on
Cloud
Open DEMAT Account with in 24 Hrs and start investing now!
Top Headlines »
Open DEMAT Account in 24 hrs
 Notification No. 68/2022 CENTRAL BOARD OF DIRECT TAXES
 Guidelines for removal of difficulties under sub-section (6) of section 194S of the Income-tax Act, 1961
 How to file income tax return with two or more Form 16s
  You must reconcile your Form 16 with 26AS before filing income tax return ITR
 Form 16: What you should check in TDS certificate while filing ITR
 Income-tax (18th Amendment) Rules, 2022
 Guidelines for removal of difficulties under sub-section (2) of section 194R of the Income-tax Act, 1961
  Compliance Check Functionality for Section 206AB & 206CCA of Income-tax Act 1961
 Notification No. 59/2022 CENTRAL BOARD OF DIRECT TAXES
 Clarification regarding Form No 10AC issued till the date
 Provisioning for Standard assets by Non-Banking Financial Company Upper Layer

4 smart tax moves to maximize investment returns
May, 11th 2022

Benjamin Franklin had rightly said – “In life, only two things are certain: death and taxes.” The first one cannot be avoided, but we can make an effort to reduce the tax burden and increase investment returns.

 

This is the first and foremost smart move that one can make to maximize returns on one’s investment. 

Anup Bansal, Chief Investment Officer, Scripbox, says, “Tax planning is a crucial aspect when it comes to saving on returns. If you are planning to make investments in tax-saving instruments like PPF and ELSS, it is best to do it at the beginning of the year to give more time for growth.” 

If there are changes in your situation, such as rental agreement changes (HRA), then consider these and intimate your employer for accurate TDS.

Invest in the name of your parents and spouse 

To avoid income clubbing, you can try investing in the name of your parents, or even your grandparents and spouse who may be in a lower tax bracket. 

Bansal explains, “If one of your parents is over the age of 65 and does not have any investments, you can invest in their name to earn tax-free interest. Every adult over the age of 60 is already entitled to a Rs 3 lakh baseline exemption.”  

Additionally, if you wish to take the help of a grandparent, who is above the age of 80, the exemption is even higher at Rs 5 lakh. 

Invest in the name of your kids

Next, your kids can also help you save tax, much like your parents, but only if your kid is an adult, i.e. above the age of 18. 

After becoming an adult, a kid is treated as a separate individual, for tax purposes and would even be eligible to open a Demat account and invest in stocks and mutual funds, with money gifted by you. 

“Long-term capital gains of up to Rs 1 lakh will be tax-free every year, while short-term capital gains would be tax-free up to the standard exemption of Rs 2.5 lakh per year,” points out Bansal. 

NPS is a good option

With the low annuity rates in India and the scary thought of putting away your retirement money for a long time, experts say has led to NPS being considered an unattractive investment option. 

Having said that, Bansal adds, “reform in the NPS’s withdrawal regulations has reversed this to some extent, making the pension scheme more appealing to those in their 50s. The new rule opens a few different tax-saving options for investors.” 

Home | About Us | Terms and Conditions | Contact Us
Copyright 2022 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting