Posts tagged with "tax"
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How Debt Fund Taxation Affects My Planning
Debt funds are taxed differently after changes to the Finance Bill 2023. This is old news I know, but I did not plan on writing anything about it because it does not change anything in my financial plan. But a reader asked my opinion and I thought I will do a quick post. Remember that anything that I write in my blog is not financial advice for people at large. It is just a recount of my experience and how various investment opportunities or taxes are applicable to my specific situation. Even if some one is exactly in my situation, my advice or experience may not apply to them because it also has to do with the mindset. So unless you are in my exact situation both financially and mentally, most of what I write may not even be relevant to you.
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Withdrawal Plan In Retirement
After my post on lumpsum vs SIP investment, a reader asked – “Wanted to understand the other side - how to redeem from our funds after we retire? Say we have calculated the number and we have enough. But, the challenge is how to get to a withdrawal mode from accumulation mode. You have showcased how you do it in some articles but can you do it with some numbers for a fictitious person? Ex: Age 40. Amount 6Cr spread across multiple equity and debt funds and US Stocks. Now, how to withdraw to last till their age of 85 for an expense of 1L per month (corpus is 50 times)?”. I thought it is an interesting question that needs answering. I will go with the numbers given by the reader and work out an example in this post.
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Tax Loss Harvesting
There are lots of legitimate ways to reduce taxes and tax loss harvesting is one of them. However, in practice, it is much harder to execute. But before we get ahead of ourselves, let me explain what tax loss harvesting is in case you don’t know. Tax loss harvesting is nothing but selling your investments for a loss when the value is below your invested amount. Then use the losses to offset any other capital gains or income that you might have. Generally tax loss harvesting works well with equity markets because there is a possibility that the markets fall and your investments could be worth less than what you invested.
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Experience With New Income Tax Portal
The new income tax portal launched last year, so it is not really “new” anymore, but I wanted to write about my experience with it. When it first launched, there were innumerable bugs. The portal was very slow. Login used to fail due to excessive load on the servers. Data I entered would not tally properly because of rounding errors in the software etc. But it has come a long way. The most recent tax submission process was much better compared to how much I struggled last year. Perhaps there are still bugs but I did not encounter any this time around, or at least I figured out the quirks in the system and worked around them.
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How Much Did Franklin Ultra Short Term Fund Return
It has been more than a year and a half since Franklin Templeton India sent out that email letting investors know that it is winding up six debt mutual funds. There was a lot of uncertainty at the time and many people were worried that they might lose their investments. Nothing of that sort has happened and we got back most of it. There is still some more to come, but at least people are confident that they will get back their full investment. That is also the reason that we don’t hear much in the news about Franklin anymore. Back in the day you would hear about it pretty much every other week.
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Follow-up to Virtual Meetup #7
Thank you to everyone who joined the virtual meetup #7. We had a very low turn-up but we certainly had a lot of questions. This post is a follow-up to that meeting so you know what we discussed. As it usually happens, the topics we covered varied quite a bit from investment related things to solar panels to taxes.
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Franklin To Disburse Our Investment?
You probably remember the Franklin fiasco that happened some 9 months ago. All those who invested in the six wound up funds have their investments stuck for the past 9 months. While the funds were wound up they were still receiving interest income from the papers that it holds. Some papers matured while some others pre-paid the bonds. So overall Franklin has Rs. 14,391 Cr in income so far according to it's latest report on Jan 29, 2021. Of this amount 4,621 Cr was used up to pay back its borrowings. The left over Rs. 9,770 Cr is available for disbursement. However it was unable to return the monies because of a court case in Supreme Court.
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Budget 2021 And How It Affects Me
Like last year, here is a quick overview of how the 2021 budget affects me. This is not an analysis or highlights of the budget. I am sure you can find many articles on those topics. This post is more specifically on how the budget affects my financial planning. To tell you the truth, there is nothing in the budget for me and that is a good thing! No news is good news isn't it?
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Tax Filler Script
The Indian tax filing has become even more tedious now. Going forward, starting from assessment year 2020-21 (financial year 2019-2020) one needs to report each and every equity redemption that results in long term capital gain in Schedule 112A. It used to be optional last year. Instead of reporting every transaction you could just report the aggregate value. But it is not optional anymore. This increases the burden on the tax payer especially if you have made a lot of small transactions.
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How And Who Should Pay Advance Tax
I just payed my second installment of advanced tax, so I thought I will write down the procedure. It will be like a reference for me in the future and might help some one as well. It is actually a pretty simple process that does not really warrant a post, but here we go anyway.
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