The market rally in the last few months has had a dramatic impact on SIP returns especially when you track them on a monthly basis. The Nifty 10-year SIP return as on 4th Feb 2021 is a healthy 14% (including dividends but before expenses, tracking error and taxes). What does this mean for investors? An…
Continue reading →Finance Bill 2020 has proposed that contribution above 2.5 lakhs by employees into recognised provided funds will be taxed. Here is why this rule does not apply to the public provident fund (PPF). The change proposed in Budget 2021 is an inclusion to clause(11) and clause (12) of section 10 of the income tax. Clause 11…
Continue reading →Nippon India Nifty Midcap 150 Index Fund is an open-ended index fund tracking the Nifty Midcap 150 index – the second such fund after Motilal Oswal Nifty Midcap 150 Index Fund. The NFO period for the Nippon India fund begins Feb 4 and lasts until Feb 12th 2021. What is the Nifty Midcap 150 Index? Out…
Continue reading →Nippon India Nifty 50 Value 20 Index Fund is an open-ended passive fund that will track the Nifty 50 Value 20 Index. The NFO period of this fund is from Feb 4th to Feb 12th 2021. This article looks at the risk and reward of the underlying index and answers if it makes sense to…
Continue reading →Finance Bill 2020 has proposed that contribution above 2.5 lakhs by employees into recognised provided funds will be taxed. If an excess contribution is made in one financial year, will it be taxed only in that year or in subsequent financial years until maturity or withdrawal? While a precise answer to this is not available…
Continue reading →Use this free calculator to find out the taxable EPF interest on employee contributions over 2.5 lakhs. This exact calculation is a follow up on this simple illustration: How employee contributions over 2.5 lakhs get taxed like an FD. If you wish to avoid this tax, you can consider alternatives discussed in this article: With PF…
Continue reading →Here is a list of stocks with momentum and low volatility for Feb 2021 from the Nifty 100. This month as many as 54 stocks qualify after filtering Nifty 100 with (1) positive 1-year return, (2) positive six-month return, (3) price > 200-day moving average, (4) 50% of daily positive returns, (5) lowest volatility. What…
Continue reading →From 1st April 2021 onwards, the interest on any contribution above Rs. 2.5 lakh by an employee to a recognised provident fund is taxable as per the provisions of the Finance bill 2021. Here is a simple illustration of how the tax works: How employee contributions over 2.5 lakhs get taxed like an FD. Many have…
Continue reading →We had earlier reported that the Finance Bill 2021 has proposed that employee contributions over 2.5 lakh will be taxed as per slab. Here is a simple illustration of this works. Update 1: Find out taxable EPF Interest with this calculator <= This is the exact calculation Update 2: The Central Board of Direct Taxes has…
Continue reading →Budget 2021 has only one offering for senior citizens. If some conditions are met, those aged 75 and above need not file income tax returns. They have to pay the necessary tax but need not file returns. The conditions for exemption from filing ITR from 1st April 2021 are: The senior citizen should be a…
Continue reading →Finance Bill 2021 has extended the provisions of the five lakh deposit insurance. Earlier it applies to only banks that went bust (liquidation). From 1st April 2021, the insurance will also apply to banks placed under temporary restrictions by the RBI. Investors can redeem up to Rs. five lakh from banks under stress. This may…
Continue reading →From 1st April 2021 onwards, the interest on any contribution above Rs. 2.5 lakh by an employee to a recognised provident fund is taxable as per the provisions of the Finance bill 2021 announced today. Update: Find out taxable EPF Interest with this calculator That is, if the total employee PF contribution (mandatory + voluntary) contribution is…
Continue reading →Finance Bill 2021-22 has proposed to tax gains from ULIP with a premium of more than Rs. 2.5 lakh per year to remove the disparity relative to mutual funds. This means from Feb 1st 2021 if you buy a new ULIP with a premium of more than Rs. 2.5 lakhs the maturity proceeds will be…
Continue reading →In the seventh edition of personal finance audits by readers, we meet 30-year old Rohit whose early struggles led him, to start investing early in a goal-based manner. As regular readers may be aware, we publish a personal financial audit each December – this is the 2020 edition: How my retirement portfolio performed in 2020. This…
Continue reading →In this article, Venkat describes how an incident in a “Xerox shop” changed his outlook on financial independence and financial literacy. Venkat, 32, changed his perspective towards personal finance when he came across the idea of FIRE – financial independence and early retirement. He then invested more than ten hours as a hobby and went on…
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