In today’s world the most important thing is about preserving and helping your career. About keeping your job. About developing new skills to be multi functional in case you are laid off. To tell you the truth I actually started this blog as a hobby and a way of testing my writing skills, also in the back of mind was an alternative source of income (which of course I am yet to find out). But honestly it’s not a good time to be in now a days, working for anyone has its own risks and rewards and with all this recession talk you never know what can happen next to you. Here are a few pointers I found on the net…
So go on be careful about what you do, and save your career from becoming redundant.
I have been writing a lot about where and how to invest and why to invest. But today I am going to tell you about my investment strategy. I like to diversify, if you talk to any professional financial Consultant, he will tell you that diversification is the key to any successful portfolio. A concentrated portfolio, can be of very high risk, since if at anytime god forbid the stock or the investment goes down, its going to take down your entire portfolio with it. Let me tell you about my Portfolio –
1. Stocks – I have invested across sectors like banking, IT, Power, Infrastructure etc., I hold stocks in at least two companies in each of the sectors. But one mistake that I have done of course is that presently I hold a very small portfolio and have just a few shares in each of the companies, which should be avoided. This way any gain in any sector does not help the overall portfolio. Well I am planning to correct that shortly.
2. Debt – I have bought things like KVP, NSC, and Bank FD’s etc. Invested in PPF account and also have a EPF account that my employer holds (Yes I work).
3. Gold – I have invested a little money in Gold ETF and have also bought physical gold in the form of a coin very recently as an investment.
4. Land - Well yet to make any significant investment in this part of my portfolio although have invested a small amount of money in a yet to be developed colonies but am planning on buying atleast one property shortly.
5. Mutual Funds – I have invested in only two Mutual funds through an SIP route, since I mostly like to manage my own money although many people tell me I should get more exposure through this channel. Lets see in the future.
6. ULIP’s – Unit Linked Insurance Plans is another investment strategy that I have adopted, wherein I have bought one ULIP and make a monthly deposit in the same.
7. Insurance – OK this is where I am focussing presently since I have come to believe I am underinsured. Although I have a couple of Endowment plans and the ULIP mentioned above, I sincerely believe in term Policy only and am planning to increase my investment in the same since that secures my family’s future.
Well that’s about it about my confession, I don’t know how many people like my investment strategy or what they have to say about the same but presently I am happy about it except for a few glitches here and there which I plan to fix very soon. Keeping my fingers crossed. Do write to me what you think about the same.
Every new user has to register at this website in order to avail the e-Filing facility. After completing the registration process and logging in, the user may download the software tools (this is and excel file) from the download section. Based on all the relevant information the required ITR Form should be filled using the software provided. The software would generate the XML format of the return which should be uploaded on this website. On successful transmission of the return a receipt will be generated in the form of a provisional acknowledgment.
If you have digital signature you can complete the submission but if not you can print the acknowledgment and send it to the tax authorities.
The web site is for individual tax returns is "ITR filing"
§ Exemption limit in personal income tax raised by Rs. 15,000 from Rs. 2.25 lakh to Rs. 2.40 lakh for senior citizens; by Rs. 10,000 from Rs. 1.80 lakh to Rs. 1.90 lakh for women tax payers; and by Rs. 10,000 from Rs. 1.50 lakh to Rs. 1.60 lakh for all other categories of individual taxpayers.
§ Deduction under section 80-DD in respect of maintenace, including medical treatment, of a dependent who is a person with severe disability being raised from the present limit of Rs. 75,000 to Rs. 100,000.
§ Surcharge on various direct taxes to be phased out; in the first instance, by eliminating the surcharge of 10 percent on personal income tax.The effective maximum marginal rate is 30.99%.
§ Sun-set clauses for deduction in respect of export profits under sections 10A and 10B of the Income Tax Act being extended by one more year i.e for the FY 2010-11.
§ Fringe Benefit Tax on the value of certain fringe benefits provided by employers to their employees to be abolished wef AY 2010-11.
§ Scope of provisions relating to weighted deduction of 150% on expenditure incurred on in house R & D to all manufacturing businesses being extended except for a small negative list.
§ Businesses to be incentivised by providing investment linked tax exemptions rather than profit linked exemptions.Investment linked tax incentives to be provided, to begin with, to the businesses of setting up and operating ‘cold chain’, warehousing facilities for storing agricultural produce and the business of laying and operating cross country natural gas or cude or petroleum oil pipeline network for distribution on common carrier principle.Under this method, all capital expenditure, other than expenditure on land, goodwill and financial instruments to be fully allowable as deduction.
§ Minimum Alternate Tax (MAT) to be increased to 15% of book profits from 10%.The period allowed to carry forward the tax credit under MAT to be extended from 7 to 10 years.
§ Commodity Transaction Tax (CTT) to be abolished wef 1.04.2009.
§ Donations to electoral trusts to be allowed as a 100% deduction in the computation of the income of the donor.
§ Deduction u/s 80E of the Income Tax Act allowed in respect of interest on loans taken for pursuing higher education in specified fields of study to be extended to cover all fields of study, including vocational studies, pursued after completion of schooling.
§ To mitigate the practical difficulties faced by chartitable organisations, anonymous donations received by charitable organisations to the extent of 5% of their total income or a sum of Rs. 1 Lakh, whichever is higher, not to be taxed.
§ Scope of presumptive taxation to be extended to all small businesses with a turnover upto Rs. 40 lakh.All such taxpayers to have option to declare their income from business at the rate of 8% of their turnover and simultaneously enjoy exemption from the compliance burden of maintaining books of accounts. As a procedural simplication, they are also to be exempted from advance tax and allowed to pay their entire tax liability from business at the time of filing their return.This new scheme to come into effect from the financial year 2010-11.
§ Tax holiday u/s 80-IB (9) of the Income Tax Act, which was hitherto available in respect of profits arising from the commercial production or refining of mineral oil, to be extended to natural gas.This tax benefit to be available to undertakings in respect of profits derived from the commercial production of mineral oil and natural gas from oil and gas blocks which are awarded under the NELP-VIII round of bidding.The section to be retrospectively amended to provide that “Undertaking” for the purposes of section 80-IB(9) will mean all blocks awarded in any single contract.
§ New Pension System (NPS) to continue to be subjected to the Exempt-Exempt-Taxed (EET) method of tax treatment of savings.Income of the NPS Trust to be exempted from income tax and any dividend paid on this Trust from Dividend Distribution Tax.All purchase and sale of equity shares and derivatives by the NPS Trust also to be exempt from Securities Transaction Tax.Self employed persons to be enabled to participate in the NPS and to avail of the tax benefits available thereto.
Still Confused about the type of form you need to fill up for income tax returns. Well Individuals have three types of forms they can file depending on the source of income.
ii. Any person, who intends to enter into financial transaction where quoting PAN is mandatory, must also obtain PAN.iii. The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person.
Sale or purchase of immovable property valued at Rs 5 lakh or more. If there are co-owners (buyer or seller), the PAN of both the owners will have to be mentioned. If a nominee holds the property, the PAN of the legal owner must be mentioned. The PAN should be disclosed in the document pertaining to purchase or sale of the property.
Sale or purchase of a motor vehicle requiring registration other than two-wheelers. This does not include vehicles running on fixed rails or special vehicles for use only in factories or in other enclosed premises or vehicles of less than four wheels with engine capacity of not more than 25 cc.
A time deposit of more than Rs 50,000 with any banking company and deposit of more than Rs 50,000 with post-office savings bank. This requirement is not mandatory when investing in post-office National Savings Certificate or Kisan Vikas Patra, and the PAN will be required only if the time deposit exceeds Rs 50,000.
Contract of sale or purchase of securities exceeding Rs 1 lakh in value, including shares, bonds, debentures, derivatives, units and government securities.
Cash payment of Rs 50,000 or more for purchase of bank drafts, pay orders or bankersÕ cheques during any one day.
Cash payment exceeding Rs 25,000 in connection
Application for installation of telephone, including cellular telephone.
Payment to hotels and restaurants against bills exceeding Rs 25,000 at any one time.
Opening a bank account.
Application for issue of a credit card.
A cash deposit of Rs 50,000 or more with any bank during any one day.
Payment of Rs 50,000 or more to a mutual fund for purchase of units or to a company for acquiring its shares or to a company/institution for acquiring its debentures/bonds or to RBI for acquiring bonds.
Minor intending to open time deposit or bank account should quote the PAN of either father or mother or guardian in whose hands income is likely to be clubbed.
Under the Active Choice, you can make a decision on how your money will be invested. There are basically three choices and how each choice you make invests your money is explained below.
Also known as the Life Cycle Choice fund, basically for people who do not want to be make the decision on how the money is invested and would rather let a system handle the same. Under this Choice it basically divides your investment under the three asset classes shown above based on your age bracket. The details are shown below….
Charges for investment are detailed below….
So go ahead and make and save for your retirement.