• The fund may invest unto 70% in large cap and 30% in a mix of mid & small cap stocks.#
• The fund will invest in sectors that are likely to get benefited from India's economic recovery and expected to do well in the next 3 years. Sectors which can be benefited are
  • Interest Rate sensitive sector
  • Infrastructure Sector
• Declare commensurate dividends*.

LTCG tax for those with income below threshold

A resident individual can adjust the basic exemption limit against long term capital gains (LTCG)

Q. What does it cover?

A. There are many types of health plans ranging from basic hospitalisation and critical illness to disease-based, top-up and daily cash. Buy a basic hospitalisation policy first. Others such as critical illness and disease-specific ones should be the next level of protection.

Q. Is it an indemnity or a benefit plan?

A. While indemnity plans cover hospitalisation expenses such as room rent, doctor's fee, etc, benefit plans pay a lump sum on diagnosis of the disease.

Q. What does it exclude?

A. You need to carefully read policy papers to know what is not covered by the plan.

Q. How long do you have to wait for the coverage to start?

A. It is important to understand what the policy will not cover, whether for a stipulated period or forever.

Q. What additional covers can you take with the policy?

A. If there is a need, additional covers such as international treatment, maternity and critical illness should be considered.

Q. Are there sub-limits?

A. You need to check expense limits for different heads such as room rent and consultant fee to avoid last-minute surprises.

Q. Are there any treatment-specific limits?

A. There can be treatment-specific caps which restrict the amount of money you can claim for a particular treatment even if the sum insured is big.

Q. Is the policy portable?

A. Ask your agent if the policy can be ported. This means you can transfer the policy to another insurer without losing continuity benefits such as coverage of pre-existing illnesses after completion of four years.

Q. How good is claim paying ability of the insurer?

A. Check the claim ratio of the insurer and compare it with that of its peers.

Q. Can you extend the coverage later?

A. As your responsibilities grow you may need to increase your sum insured. Ask your insurer as to what extent it can be done.

Buying life insurance can be a crucial decision. Some people may choose to buy a cover early in life. Others may leave it until later. If you are thinking of investing in a life insurance policy, here are 10 points you may want to know.

1. Necessity: Investing in a life insurance policy can make complete sense if you are taking care of other people. Life insurance provides more than the death benefit. It may help you prepare for any uncertainties. But what if you plan to remain single? Or, you do not have any future liabilities? Then you may think again before buying a life insurance policy.

2. Purpose: You may feel investing in life insurance is a fundamental need. Then consider the purpose of buying your policy. For example, do you expect your policy to pay for your child's education in case of an uncertainty? Or, do you want it as a security for your high-risk job?

3. Coverage: Individuals need different insurance covers. What is the amount of cover you need? Your annual income may not be the ideal figure to calculate your desired cover. You may want to consider other important factors before deciding. What is your age, profession, and medical condition? How many people are dependent on you? What are your financial goals?

4. Category: If you are clear about the purpose of your life insurance and the amount of cover you need, it will help you choose the category of insurance you want to buy. You can opt for either a term insurance cover or a whole insurance cover. Do you want to pay a fixed premium rate for a specific period of cover? Then a term insurance is best for you.

5. Debt: When you decide to invest in a life insurance policy, you have to know how much you are able to pay. So you may want to consider any debts you already have. These existing debts could hamper your ability to pay the insurance premium on time. This delay could end your policy. Most insurance companies may also increase the premium when you renew your policy.

6. Investment: You may not want to ignore the investment element while purchasing a life insurance cover. A unit-linked insurance policy (ULIP) provides for death benefit and financial security. It may also provide an opportunity for your investment to grow by linking it to the stock market.

7. Protection: Your life insurance policy may pay for unexpected events such as death, disability, and sickness. It could provide protection to your loved ones by reducing the effects of loss of income due to death. You can even draw a loan against your life insurance policy. Many banks and financial institutions accept it as a guarantee.

8. Savings: Investing in a life insurance policy could lead to savings. A term life insurance could leave you with cash in hand. You could use this money for other investments. For example, you could pay a certain amount of premium for a specific time. You could then use the rest of the insurance amount to buy a child plan. You may accumulate cash value with permanent life insurance and get tax-deferred growth.

9. Tax benefits: Life insurance premiums are exempt from tax up to a certain amount. The claim amount received by the beneficiary is also tax-free. But each policy is different. So it is important for you to know how much you will be paying to keep your policy practical. Sometimes the cost may be more than the tax benefits.

10. Terms: Each life insurance policy has different terms and conditions. You need to understand and read the complete policy document before signing to buy. You may want to know the future impact on the premium. You may also want to know if there is any bonus or cash value that you could withdraw in the near future.

Tax implication on debt funds for merchant navy personnel

For merchant navy personnel the tax treatment will be similar to that of an NRI

For merchant navy personnel the tax treatment will be similar to that of an NRI which is as follows

Long term capital gains (holding period of more than 3 years) 

Listed debt funds are taxed at 10% without indexation or 20% with indexation whichever is lower but the fund house will deduct TDS at flat rate of 20%. 

Unlisted debt funds are taxed at 10% without indexation.

Short term capital gains (holding period of less than 3 years)

Debt funds are taxed as per your income tax slab, but the TDS is deducted at the highest applicable rate of 30%, irrespective of what tax slab you belong to.