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Filling Tax Returns Online





THE LAST date for filing Income Tax (I-T) returns is just about a week away and it's time to get your documents in order to get started with the process. If you have a taxable income of over `5 lakh, you must file the returns online. The process has become less complicated this year with the I-T department's official e-filing site (incometaxindiaefiling.gov.in) introducing the much simpler Java utility .

It is user-friendly and faster, with separate tab for head of income and tax details being provided. Also provided is the option to pre-fill some personal and tax information such as PAN (permanent account number), name, TDS etc.

However, keep your bank statements, Form-16 issued by your employer and a copy of the last year's returns near you before you begin.

You then need to register yourself on the portal, where your PAN will act as your user ID. You can click on `Quick e-file ITR' on the left hand side menu and follow the instructions after selecting the applicable form. Pay the income tax due, if any; verify all the information and hit the `submit' key . Finally , if you haven't filed the return using a digital signature, you need to print the verification form (ITR-V), sign it using a blue ink and send it to the I-T department's central processing centre in Bangalore by ordinary or speed post, within 120 days of filing your returns electronically .

PAY AND FILE

If you find the task daunting, you may also use private portals like taxsmile.com, cleartax.in and myITreturn.com that facilitate filing of return. You can also check out mobile applications from BlackBerry and makemyreturns.com.

The private portals essentially offer two types of plans -one, where you are required to complete the process on your own and the other, where the portal's helpdesk assists you. If your return-filing is complex and detailed, consider opting for this assistance.

But you will have to pay a fee of `299-1,500, depending on the site and your requirements. Those earning less than ` 5 lakh are offered this service for free.

For those drawing an income of over `5 lakh, we charge a fee. All calculation engines are embedded (filer need not know the tax laws) in the page, making it easy to file returns. In addition to these, the portals also offer value-added services like tax credit verification, ITR-V submission and refund tracking for a fee. Our income tax return review service entails tax experts scrutinising the return prepared by users. This helps in ensuring accuracy.

CHOOSE SITES CAREFULLY

I-T department recently put out a cautionary advice against using certain mobile applications without naming any, stating that one must use them at their own risk. So, ensure that you are using a legitimate portal or an application.

Check if firm's policy states that your data won't be shared with third parties without consent. Moreover, see its track record too.

You need to assure yourself that the sensitive information that you provide will not be misused. Therefore, do a background check to ascertain the return filing portal's reputation and its parent company's antecedents. Transacting through credible entities will provide some comfort.

Considering that the new version of the forms on the department's portal is simpler, attempt filing on the official site first.

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

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

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

3. DSP BlackRock Tax Saver Fund
4. 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

Download Tax Saving Mutual Fund Application Forms

Invest In Tax Saving Mutual Funds Online

Buy Gold Mutual Funds

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94 8300 8300

 

Diversify Your Investments





Government-guaranteed pension, inflation-beating returns from safe investment schemes, low rate of inflation and the comfort of a joint family — all these four pillars on which retirement planning rested earlier have disappeared. The new reality is that the recently retired or tomorrow's retirees will need to balance high expenses with uncertain returns on their invested capital, longer lifespan with ever looming dangers of outliving their accumulated retirement corpus and an urge to hang up their boots early. And all these without wanting to compromise on their lifestyle.

For retirees, the biggest enemy is inflation. Just as compounding works in your favour, inflation eats away the value without your knowledge. A retirement corpus of Rs 1 crore may seem to be a lot of money today but over 30 years an inflation of 8% can reduce its equivalent purchasing value to less than Rs 10 lakh at today's prices.

And worse, over the last 30 years consumer inflation was in double digits many a times. A lowto-moderate inflation rate of 7-8% does not attract attention of the working class. That's because prices of products and services do not seem to be shooting up 'fast' but over the years, it nevertheless erodes your money's value quietly.

For example, a person with a retirement corpus of Rs 50 lakh feels it will help him/her live well. Now if he invests this corpus at 8% per annum in a safe investment avenue, he/she will start eating into this corpus from the age of 72 years and by the time he/she is 86, there may not be any corpus left. And these calculations are based only on normal day-today living, and no big expenses are considered. And if inflation rate is in double digits, the matters could be worse. Thus, you need to go beyond safe investment avenues if you want to live long. So you should invest a calculated amount in some high growth investment product that returns enough to offset the low returns of safe avenues. This will not only support your expenses but will help you pursue your dreams post-retirement.

You can follow this 4-step retirement strategy to preserve your nest egg and also live a comfortable retired life:

Know how much you need

The income that you need to live off after retirement is approximately 65-70% of the income that you need while working, considering no big purchases or expenditures. However, this rule of thumb may not be accurate for everybody since people are living longer than ever and retiring in good enough health to incur additional expenses (travel, entertainment and so on). This holds good if you meet the following criteria: ä No rent or loan on your house,

Your children are financially independent, You have fewer taxes due to lower income,

And you have no debt

Decide your asset allocation

Don't put all your nest eggs in one basket because that's a high risk strategy for your postretirement corpus. It should be a mix of different asset classes and investment instruments with debt and fixed income instruments forming the backbone of the allocation. Have some equities and prefer it through the mutual fund route.

However, this should be based on your risk appetite.

Choose appropriate products

Once the asset allocation is decided, choose the right investment vehicles to attain your goals. Invest in a large number of instruments that will assure regular income and also allow your corpus to grow in tandem with your withdrawals and rising inflation. This strategy should alter with the age or stage of the life after retirement. So, for the first 6-8 years after you retire, allow your funds to grow at a rate faster than the withdrawal. Even as you use the interest earned through debt options to meet your expenses, invest in equity through mutual funds or monthly income plans. However, all these require strict monitoring after you have parked your funds in various instruments.

Formulate a withdrawal plan

The final step in your retirement planning is to formulate a withdrawal strategy with two essential components: liquidity and growth. It should give you regular income and also grow fast enough to take care of future expenses. Systematic withdrawal plans (SWPs) in mutual fund schemes and rentals from a good residential/commercial property are ideal strategies.

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

3. DSP BlackRock Tax Saver Fund
4. 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

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

Debt Mutual Funds and Budget 2014

The increase in the tax exemption limit from ₹ 2 lakh to ₹ 2.5 lakh, the savings that can be done under Section 80C has been increased by ₹ 50,000 per annum and the deduction available for interest repayment towards home loans for self- occupied property has been increased to ₹ 2 lakh. But, there was a sore spot amid all the good news.

It was the change in the long- term capital gains tax and the tenure for qualifying for long- term capital gains for non- equity mutual funds. Long term capital gains tax used to be 10 per cent without indexation or 20 per cent with indexation, whichever was lower.

Now, the 10 per cent has become 20 per cent, effectively leaving only 20 per cent with indexation as the option. The other blow was the increase in duration from 12 to 36 months for being considered long- term.

Giving some respite to investors, the Finance Minister clarified, on Friday, that the higher capital gains tax on debt funds will not apply for redemptions made between April 1 and July 10. However, if you redeem after this date, the new tax rates will apply and so will the new definition of long- term.

These changes have lots of implications when we plan finances. Let us divide the tenures into three segments and analyse the impact. But do they make all debt funds bad options? Not really. Let us look at their impact by dividing the investment tenures into three segments.

One year or less: For a period of less than 12 months, investors can look at liquid funds or ultra short- term funds. These are suitable from the point- ofview of liquidity requirements and short- term provisioning. The attraction in these funds is that these can be cashed out when required and till that time they earn good returns. These funds might not have exit loads at all or may have exit loads for a short period of time, say a week to a month.

Additionally, these funds have given about nine per cent or more annual returns, in the past year.

Taxation in the less than one year period was always at one's tax slab rate. That has not changed after the Budget. The other option for liquidity/ short- term provisioning is keeping money in savings bank account. But that offers very low returns –typically four per cent pre- tax. Some banks give up to six per cent pre- tax, provided you maintain a certain minimum balance in the account. In most cases it is ₹ 1 lakh and above.

Another option is to invest in short- term fixed deposits ( FDs). Their returns are not very high – seven to eight per cent. Beside, they have a fixed tenure. If you want to withdraw before the end of the tenure, you will have to pay a penalty. This could mean lesser yield. Hence, for one year or less tenures, liquid funds/ ultra short- term funds can be continued.

One to three years : The problems arise in this period. Before the budget, debt funds used to enjoy the longterm capital gains tax treatment here.

Now, the tax treatment is as income. There is parity between FDs and debt funds in this tenure. Hence, in this tenure, debt funds are not hands down favourites.

But hold on, there are reasons to consider debt funds even for this tenure. Debt funds were being used to provide for goals/ expenses coming up in the near future. Many times, the timing of the expense is not clear. Hence, bet as compared to one that has a fixed tenure like a FD. It can potentially offer somewhat better returns than an FD, where on premature withdrawal, the yield can be lower.

FDs would be suitable for those who want fixed returns. FDs will work well if the goal/ provision is fixed and there is no possibility of a change there. However, if the goals get postponed, the FDs will mature and lie in the savings account, offering rather measly returns. This time period is a problem if we want to plan efficiently. We need to live with this uncertainty. Three years or more : Investments done for this period are generally for the long term, to meet goals/ funding requirements. In this tenure, offered along with the

home loan: Many banks today have an overdraft account ( OD) attached to the home loan, where one can deposit the excess money one may have. For whatever money lies there, in the one to three year the problem posed The other point to note is since the dividend distribution tax is at 28 per cent plus, it will not be suitable for those in the 0, 10 and 20 per cent tax slabs, as they would be effectively paying 28 per cent plus tax, when actually they are in the lower slabs. For such people, it would be better if they are in the growth option itself. Dividend option will, hence, be beneficial to those in the 30 per cent or higher tax brackets only.

Though there has been some turbulence in the debt fund space, it can be managed. The taxation in the one to three- year period has gone up and we need to live with it.

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

3. DSP BlackRock Tax Saver Fund
4. 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