Why ELSS Tax Saving Mutual Funds is best choice for tax planning

Why ELSS Tax Saving Mutual Funds is best choice for tax planning

Investors can save up to Rs 46,350 in taxes per year by investing up to Rs 1.5 Lakhs in eligible schemes under Section 80C of the Income Tax Act 1961. There are broadly two types of tax savings schemes – risk free or low risk schemes and market linked schemes. The risk free or low risk schemes are Public Provident Fund (PPF), National Savings Certificates (NSC), 5 year tax saving Fixed Deposits (offered by banks and post office), traditional life insurance plans (e.g. endowment plans, money back plans etc), Senior Citizens Savings Schemes etc. In these schemes capital safety is assured. In some schemes like NSC, FDs returns (interest) are guaranteed, while in others the interest rates can change from time to time over the investment tenure.

The market linked schemes under Section 80C are ELSS Tax Savings Mutual Fund Schemes or Equity Linked Savings Schemes (ELSS) and Unit Linked Insurance Plans offered by life insurance companies. ELSS and ULIPs invest in capital market securities and therefore, they are subject to market risks. If you want assurance of capital safety then market linked schemes are not for you and you should invest in Government small savings schemes (PPF, NSC etc) or Bank tax saving FDs.

However, if you are willing to take risks and are prepared to remain invested even beyond the lock-in period of these schemes then ELSS is the best tax saving investment choice. ELSS enjoys three big advantages compared to other tax saving investments.

Potential of giving superior returns

Favourable tax treatment

Superior liquidity
In this blog post we will discuss these advantages of ELSS vis a vis other 80C schemes.

Superior Returns
Historical data shows that, equity is best performing asset class in the long term. In the last 20 years, the S&P BSE – Sensex gave 11.7% compounded annual returns, while bank FDs gave average annualized returns of only 7% over the entire period. Many investors focus simply on tax savings and ignore the growth potential or the tax implications on the maturity amount. The result is that, they get sub-optimal returns which struggle to beat inflation on a post tax basis. ELSS tax saving mutual fund Schemes, on the other hand, offer both 80C tax savings and wealth creation potential over a sufficiently long investment horizon. The table below shows the post tax inflation adjusted rate of different 80C investment schemes over the last 5 years.

Key Assumptions: The investor is the in highest (30%) tax bracket. Average category returns over the last 5 years have been assumed for ELSS. Please note top performing ELSS schemes gave higher returns. Life insurance endowment plans returns assumption is based on prevailing IRRs of life insurance endowment plans.
You can see in the table above that, ELSS has outperformed all other 80C schemes. Notice the last column post tax returns. You can see how some returns can seem attractive on a pre-tax basis, but low on a post tax basis. We will discuss the taxation aspect in more details later in this post. Let us now discuss another important aspect that is often ignored by investors, when looking at returns and when making investment decisions.

You will see many people complaining about rising prices, but how many people factor in inflation when making investment decisions? In the chart above, we saw post tax returns of several Section 80C investment schemes over the last 5 years. Let us now bring inflation into the picture. The chart below shows the CPI inflation rate from 2013 to 2017.

The base colour of the new Rs.  10 notes is ChocolateBrown. Also read other features

The base colour of the new Rs.  10 notes is ChocolateBrown. Also read other features

The Reserve Bank of India (RBI) will shortly issue new banknotes of Rs. 10 denomination, the central bank said on Friday. The new Rs. 10 notes will be in the Mahatma Gandhi (New) Series, The new denomination notes will have motif of the Sun Temple and the Konark on the reverse side, depicting the country’s cultural heritage.

Here are 10 things to know about RBI’s new Rs.10 currency notes:

1. The dimension of the new Rs. 10 banknotes will be 63 mm x 123 mm.

2. The new Rs. 10 notes will have a see through register on the front sides with denominational numeral 10.

3. The denominational numeral 10 will be printed on the front of the note in the Devnagari script.

4. The front sides will bear a portrait of Mahatma Gandhi at the centre. Micro letters ‘RBI’, ‘Bharat’ (in Devnagari), ‘India’ and ’10’ will also be printed on the front side of Rs. 10 notes.

5. The front sides will bear a windowed demetalised security thread with inscriptions ‘Bharat’ and ‘RBI’. Guarantee Clause, Governor’s signature with Promise Clause and the RBI emblem will be printed towards the right of Mahatma Gandhi’s portrait, said the RBI.

6. The Ashoka Pillar emblem will be on the right side of the front side. The front side will also have electrotype (10) watermarks, besides Mahatma Gandhi’s portrait.

7. The front sides will have a number panel with numerals growing from small to big on the top left side and bottom right side of the Rs. 10 note.

8. The year of printing of the notes will be inscribed on the back sides of the Rs. 10 notes, towards the left.

9. The back sides will also have a Swachh Bharat logo with slogan.

10. The reverse sides of the new Rs. 10 notes will have a language panel, motif of the Sun Temple and the Konark, and the denominational numeral 10 written in Devnagari script.

A youngster asked his grandfather… “Grandpa! How did you people live before with

A youngster asked his grandfather…
“Grandpa! How did you people live before with

No technology
No aeroplanes
No internet
No Computer
No Dramas
No TV
No aircons
No cars
No Mobile phones.

Dada replied
Just like how you people living today…

No Prayer
No compassion
No honour
No respect
No character
No shame
No modesty”

We, the people born between 1950-1989 are the blessed ones…
Our life is a living proof.

👉While playing and riding bicycle, we never bothered to wear helmets.

👉After school time we played until its dusk but never watched (TV) by locking up ourselves in a room.

👉We played only with our real friends, not with NET friends.

👉 If we ever felt thirsty, we used to drink tap water but never searched for bottled water.

👉We never got ill even after sharing the same juice with four friends.

👉We were never put on weight even after eating plate full of rice everyday.

👉Nothing happened to our feet even after roaming bare foot.

👉We never used any health supplements to keep ourselves healthy.

👉We used to create our own toys and play with them.

👉Our parents were not rich. They just searched for and gave only love.. not any worldly material.

👉We never had cellphones, DVDs, Play stations, XBoxes, video games, Personal computers, internet, chat but we had many real friends.

👉We used to visit our friend’s home uncalled and enjoyed food with them. We never had to call them and ask their permission to visit their home.

👉Relatives were near to us so our hearts and souls were happy.

👉We may have been in Black and White photos but you can find good colourful memories in those photos……..

👉 We are a unique and the most understanding generation, because we are the last generation who listened to their parents….
and also the first which have to listen to their children.

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Outsource all your Accounting, Taxation (Income Tax as well as GST), Legal and Statutory Compliances to us….

Outsource all your Accounting, Taxation (Income Tax as well as GST), Legal and Statutory Compliances to us….

We also undertake BB&Book-Keeping, Accounting, Taxation and all Statutory Compliances at one place in any major city in India.

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Income Tax and all related matters such as PAN Card, Tax Returns, TDS Computation and Returns, Income Tax Scrutiny and Assessment etc

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Companies Act and ROC Compliances are also undertaken by our team.

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One-Stop-Consulting to Manage your Accounting and Taxation (Income Tax & GST) , Companies Act & R.O.C compliance and all other Legal and Statutory Compliances. We are a team of Chartered Accountants Company Secretary and Lawyers. We also undertake Managing your Accounting and Compliance work in your office.

Intellex is a ONE-STOP Consulting firm with offices/associates all over India, for:-

 

One-Stop-Consulting to Manage your Accounting and Taxation (Income Tax & GST) , Companies Act & R.O.C compliance and all other Legal and Statutory Compliances. We are a team of Chartered Accountants Company Secretary and Lawyers. We also undertake Managing your Accounting and Compliance work in your office.

Syndicationof Finance (both Debt and Equity,) , subject to strict due diligence

Accounting on assignment/outsourced basis,

Taxation (Both Income Tax and GST) and

Company/LLP Registration and ROC and Companies Act compliance,

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The promoters of our organizations come from diverse background such as from IIT & IIM as well as Chartered Accountants, Lawyers. We are based in Mumbai (India) and having offices across most of the cities in India.

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Read this speech from the prime minister of Israel….. Benjamin Netanyahu, with all Glory to God.

Read this speech from the prime minister of Israel….. Benjamin Netanyahu, with all Glory to God.

Mr. Nethanyahu said:
Only 70 years ago! The Jews were taken to the slaughter like sheep.

60 years ago! We had no country. No Army.

Seven Arab countries declared war on our small Jewish state, just a few hours after its creation!

We were only 650 Jews, against the rest of the Arab world! NO IDF (Israel Defense Army).
No powerful Air Force, only brave people with nowhere to go.

Lebanon, Syria, Iraq, Jordan, Egypt, Libya, Saudi Arabia all attacked us at the same time.

The country that the United Nations gave us was 65 % desert. The country was out of nowhere!

35 years ago! We fought the three most powerful armies in the middle east, and we swept them… yes… in six days.

We fought against various coalitions of Arab countries, which had the modern armies and many Soviet weapons, and we had always beaten them!

Today we have:
*A country*
*An army*
*A powerful air force*
*A State-of-the-Art economy which exports millions of dollars*
*Intel – Microsoft – IBM develops products at home*
*Our doctors receive awards for medical research*

We make the desert bloom, and sell oranges, flowers and vegetables all over the world.

Israel has sent its own satellites into space!
Three satellites at the same time!

We are proud to be at the same rank as: The United States, which has 250 million inhabitants,

Russia, which has 200 million inhabitants

China, which has 1.3 billion inhabitants

Europe – France, Great Britain, Germany – with 350 million inhabitants..

The only countries in the world to send objects into space! Israel is now part of the family of the nuclear powers, with the United States, Russia, China, India, France, and Great Britain.

We have never officially admitted it, (but everyone knows it) and say that only 60 years ago, we were led, ashamed and hopeless, to slaughter!

We have extirpés the smoking ruins of Europe, we have won our wars here with less than nothing. We built our little “Empire” from nothing.

Who’s Hamas to scare me? To terrify me? You make me laugh!

Passover was celebrated; Let’s not forget what this is about.

>We survived Pharaoh.
>We survived the Greeks.
>We survived the Romans.
>We survived the inquisition in Spain.
>We have the pogroms in Russia.
>We survived Hitler.
>We survived the Germans.
>We survived the Holocaust.
>We survived the armies of seven Arab countries.
>We survived Saddam.
>We will continue to survive the enemies present today too.

Think of any time in human history! Think about it, for us, the Jewish people, the situation has never been better! Then let’s face the world.

Let us remember: All nations or cultures who once tried to destroy us, no longer exist today – while we still live!

Egypt?
The Greeks?
Alexander of Macedonia?
The Romans? (does anyone still speak Latin these days? )
The Third Reich?

And look at us,
>The Bible Nation.
>The slaves of Egypt.
>We are still here.

And we speak the same language! then, and now! Arabs don’t know yet, but they will learn that there is a God ….as long as we keep our identity, we are forever.

So forgive us for not worrying.
>Not to cry.
>Not to be afraid.
>Things are fine here.
>They could certainly get better.

However: Don’t believe the media, they don’t tell you that parties continue to take place, people continue to live, people keep coming out, people continue to see friends.

Yes, our morale is low. So what? Only because we mourn our deaths, while others rejoice in the blood shed. That is why we will win, in the end.

He never sleeps or will ever sleep…. the guardian of Israel…. Yahweh God of Abraham, Isaac and Jacob.

Forward this speech to the whole community, and to people around the world. They are part of our strength.

Share on your walls and with all of your friends….

Robert Mugabe , who resigned as President of Zimbabwe yesterday, will be remembered for his sweet quotes.

Robert Mugabe , who resigned as President of Zimbabwe yesterday, will be remembered for his sweet quotes.

Anyway, which one is your pick for the end of the year?

1–A girl can be 21 with 2 kids while another one can be 18 with 3 abortions but the society will judge the 21 year old simply because her decisions are visible.

2–Most men cheat with their wedding ring on their finger. And you think your boyfriend won’t cheat coz YOU’RE his profile picture??

3–We are living in a generation where lovers are free to touch each others private parts but cannot touch each others phone.

4–All I hear is “NO SEX BEFORE MARRIAGE”. If that was God’s plan then u would have receive your penis or vagina on your wedding day.

5–Dating a slim/ slender guy is cool, the only problem is when you are lying on his chest then his ribs draw Adidas lines on your face.

6–Love is when your boyfriend catches you naked with another man and says honey dress up and we go home.

7–Some girls of today can’t jog for five minutes, but they expect a guy to last in bed with them for 2 hours. Your level of selfishness demands a one week crusade.

8–Women with beauty and no brains, its your private part that suffers the most.

9–Whenever things start going on well in your life, the devil comes along and gives u a girlfriend.

10—Teachers are my friend and I feel for Women who are married to Teachers, instead of finding money in the pocket when washing, they find Chalk or list of noise makers.

11– ON EARNING: Never depend on single income.Make investment to create a second chance.

12. ON SPENDING: If you buy things you do not need, soon you will have to sell things
you need.

13. ON SAVINGS: Do not save what is left after spending, but spend what is left after saving.

14. ON TAKING RISK: Never test the depth of a river with both feet.

15. ON INVESTMENT: Do not put all eggs in one basket.

16. ON EXPECTATIONS: Honesty is a very expensive gift. Do not expect it from cheap people.

17. IF YOU are depressed, you are living in the past. If you are anxious, you are living in the future. If you are at peace, you are living in the present. Past is a waste paper. Present is a newspaper and future is a question paper.

18. WHEN bad things happen in your life you have three choices. You can either let it define you, let it destroy you or you can let it strengthen you.

19. EMPTY pockets teach you a million things in life but full pockets spoil you in a million ways.

20. OUR EYES are in the front because it is more important to look ahead than to look back.

21. WE USED a pencil when we were small but now we use pens…do you know why? Because mistakes in childhood can be erased but not now.

22-Sometimes you look back at girls you spent money on rather than sending it to your mum and you realize witchcraft is real

23-You need at least 1 witness to prove a murder case & a minimum of 2 witnesses to register a marriage, It clarifies which one is more dangerous.

24-A woman with only a beautiful face is only good for a night, but a woman with a beautiful heart is good for a lifetime. Ladies mind the way you handle and present yourself out there because it speaks so much about who you are. If you treat yourself cheaply, you will attract many useless, fake and irresponsible people (men) around you and if you treat yourself with dignity, you will attract a few sensible and serious people around you.

25-Treat every part of your towel nicely because the part that will wipe your buttocks today can be the part that will wipe your face tomorrow.

26-The way relationships dont last these days. It’s even safe to celebrate a one week anniversary.

27-Only a black man will have unprotected sex with a girl he just met at the Club,then get in his car and put on a safety belt like he didn’t try to kill himself a minute ago!

28-An expensive weave can never reduce the effect of cheap brains….

29-MARY was a virgin and she married a carpenter (JOSEPH). YOU are not a virgin and you are waiting for a billionaire to marry you.

30-Some girls are funny, they will tell guy that “It’s over between us “When the guy says Okay, she will be like “Just Like That?” What were you expecting???? Closing Ceremony??

31-Dear ladies, The silence you keep when you find money in your husband’s pockets during laundry,kindly do the same when you find condoms.

32-The festive season is upon us, accidents take seconds to happen but suffering lasts a life time. Helmets and Condoms should be worn on appropriate heads during the respective rides, especially on vehicles that don’t belong to you.

33-Church sisters be refusing Church brothers saying “No you are my brother” For your own info: Even your mother and father are brother and sister in Christ.

34-Someone who unplugs your phone charging at 3% to plug his at 97% is capable of killing you

35-Some Girls will be like: “I cannot cook, my mom didn’t teach me” Well, my sister tell me who taught you dog style??

36-Remind your man that when he’s busy looking for a new woman, you are also new to another man..

37-When nails grow old, we cut nails not fingers. Similarly when misunderstanding grows up, cut your ego not your relationship.

38-Every man wants to marry a decent lady. Question is who will marry the ones you spoil?

39-Don’t focus on your wife’s faults, they are the ones that prevented her from getting a better husband.

40-Girls are so clever…they can introduce 3 Boyfriends to each other at the same time without causing a fight…She will be like ; My love, meet my sweetheart and my one and only boo…and you will see the 3 idiots smiling at each other and say Hi boss what’s good.

41-Men can be heartless; they will use you, Use your body, Damage your reputation then marry a beautiful wife, Become born again & Use you as a testimony in church, That’s when you know the devil lives Among us.

42-Married people with kids and careers find time to have affairs. Don’t let a single person tell you they’re too busy for you..

43-If a guy dumps or breaks your heart, take his phone and leave. Call his Mother and tell Her he is dead….you are actually calling from the accident scene….. then switch off that phone.You cannot be crying alone. She must also feel the pain for not raising him well.

44-A woman should NOT feed a man!! The last time it happened, we were all sent out of the Garden of Eden.

45-Help a girl when she is in trouble and she will surely remember you when she is in trouble again!

46-Your body heals. Your heart heals. The mind heals. Wounds heal. Your soul heals. Your happiness is always going to come back. Bad times don’t last.

47-A woman that loves you will stick with you no matter how much a player you are. And that “woman” is your mother.

48-Ladies now feel shy to breast feed babies but feel no rumors to display their breast outside in the name of fashion just to attract men my sister breast was designed to feed hungry babies not for pageant parade

49-Apologize when you’re wrong. Be silent when you’re right. Ask if you’re not sure. Admit it when you make a mistake. Forgive when you’re wronged. You’ll have wonderful marriage.

50-They say milk gives strength. I have drunk 4 cups of milk and i gwas not even able to move a wall. But when i drank 4 bottles of beer, i saw walls moving themselves. Hmm these scientists should stop their lies!