Posts tagged with "tax" - page 2


  • Taxation of Franklin Segregated Funds Payout

    There is a lot of confusion about how the payout from Franklin Segregated funds (Vodafone Idea papers) will be taxed. After reading a lot about the taxation for the past 3 days, I think I finally have a good idea. If you received a payout from Franklin, you will find all the details on how to calculate your tax. I can tell you upfront that we are at a tax disadvantage. Moreover, you might have to pay advance tax depending on how much you received. In the rest of the post I will be using Franklin Ultra Short-term Bond fund as an example, but you should be able to do the same for any other fund. If you'd rather watch a video instead of reading this post, scroll to the bottom.

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  • Consolidating Your Portfolio

    I am sure everyone of you at some point have wondered why you have so many funds in your portfolio. I am one of them too. If you have wanted to consolidate your funds into fewer funds in fewer categories, this post should help you get there.

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  • Income Tax Reporting

    While the name "income tax reporting" seems to suggest that you only need to report income, it is not really the case. It has been expanded to report investments that you already have, whether they gave you any income or not during the assessment year. After reading a comment on one of my blog posts I became aware of the fact that some people might be misinformed about what is supposed to be reported.

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  • Tax Audit

    I was recently audited by the Income Tax Department and thought that the whole faceless scrutiny process was interesting. So here is something about it. It seems like I was one of those people who got randomly selected for Limited Scrutiny (Computer Aided Scrutiny Selection). It was the government's way of testing out the e-Proceedings facility.

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  • Budget 2020 and How It Affects Me

    I am sure you already know everything you need to know about the budget by now. There are hundreds of articles covering every aspect in details. Now the question really is -- how much does it affect you? Since everybody's situation is different, their incomes and tax deductions are different, there isn't much advice that I can give. This is one of those times when I throw the clichéd answer "it depends". So instead, I thought I will pen down how it affects me.

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  • Tax Deductions

    As I am doing taxes for the recently concluded financial year, I am realizing how much of tax saving one would be forgoing once you retire :). Without income there is no more section 80C deductions, no more savings from interest paid towards home loan via section 24, no exemptions for HRA under section 80GG. These things only hit you once you retire. Of course I went into retirement knowing that, so nothing to worry, but you don't realize these until you do your taxes. During your earning phase, every paycheck is a reminder for saving taxes and claiming as much deductions as possible.

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  • Am I Financially Ready To Retire?

    Here is an alternative take on whether you are financially ready to retire. In this post, I want to help you determine if you are ready to quit with nothing but a simple calculator and just one formula. You don't need to predict expenses, inflation, rate of return etc, and as such, this method is not as comprehensive as the How Soon Can I Retire calculator. So take it with a pinch of salt and use it more as an indicator of whether you are ready to retire or not. Also note that this is only to check if you are financially fit to retire and has nothing to do with your emotional state of mind. Some may have a lot of money and yet cannot retire due to various other reasons (including not knowing what to do post retirement, fear of boredom, peer pressure, family disapproval, social status etc).

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  • Financial Support for Your Parents

    You are currently working and deriving a salary. It is easy to support your parents with the salary. But how about when you retire? Hopefully, you have included supporting your parents as part of your expenses when calculating how much do you need to retire. Alternatively, they have enough corpus or other income that will let them support themselves and live independently. In my case, it was a mix of both and I thought I should explain how I am handling it. May be it will help you get some clarity on how you want to go about it.

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  • Debt Funds vs Fixed Deposits

    If you ask someone whether Fixed Deposits are better or Debt funds are better, more likely than not, you will hear a biased answer towards either of them. Some swear by FDs and their safety, while others say debt funds always give better returns than FDs. Lets bust some myths and try to get an understanding of how these two types of investments work.

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