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I am a 60-year-old woman with a moderate risk profile and no liabilities. Our monthly outgo of Rs 60,000 is taken care of by my husband. Both my children are settled in the US. We have a health insurance policy of around Rs 25 lakh. There are some investments with me as first holder and my husband as the second holder or nominee. These include Rs 70.4 lakh in bank FDs, Rs 10.8 lakh in REC and EC bonds, Rs 9 lakh in Post Office MIS, Rs 9.90 lakh in post office term deposit, Rs 15 lakh in SCSS, Rs 40 lakh in shares (Tata Power + ITC) and Rs 0.13 lakh in ELSS funds. I want to invest Rs 15,000 to Rs 20,000 (FD interest) every month in inflation beating investment options for 4-5 years to earn 10-12 % returns. I am not interested in PMVVY. I should be able to transfer the amount seamlessly to my children. We may settle in the US in future.
Suggested InvestmentHorizon: >3 years
Time taken to doublemoney: 1.1 Years
Chartered Accountant Naveen Wadhwa, DGM, Taxmann.com says, Section 80C allows deduction in respect of various investments such as a subscription to units of ELSS, ULIPs, etc. The Indian Stamp Act provides for the levy of stamp duty at the rate of 0.005% on purchase of units. If an investor is investing Rs 50,000 then stamp duty of Rs 2.5 shall be levied, and a balance amount of Rs 49,997.5 will be invested in the units. The provision is silent whether the amount of deduction under Section 80C shall be arrived at before excluding or after excluding the stamp duty. It is advisable to claim the deduction for the net amount, that is, after excluding the stamp duty.
Synopsis
According to chartered accountants, this is necessary to claim the full tax-saving benefit of Rs 1.5 lakh, which is the maximum allowed under section 80C.
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Effective from July 1, 2020, investments in equity mutual funds attract stamp duty at the rate of 0.005%.
If you are investing in an equity-linked savings scheme (ELSS) to claim the tax benefit under section 80C of the Income-tax Act, 1961, then do make sure that you have invested marginally more than the specified limit of Rs 1.5 lakh in a financial year. According to chartered accountants, this is necessary to claim the full tax-saving benefit of Rs 1.5 lakh, which is the maximum allowed under section 80C. However, in order to do this you may have to end up investing at least Rs 500 more than Rs 1.5 lakh i.e. Rs 1,50,500 in case of a lump sum investment. In case of SIPs, the amount may have to be more.
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Last Updated: Apr 28, 2021, 11:39 AM IST
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I am currently investing in following mutual fund SIPs from given time periods: DSP Tax Saver Fund 5% of my monthly investment (3 years), Axis Long Term Equity Fund 10% (2 years), Kotak Flexicap Fund 10% (18 months), Mirae Asset Emerging Bluechip Fund 25% (18 months) ICICI Prudential US Bluechip Equity Fund 10% (10 month), Axis Bluechip Fund 20% (7 month), SBI Small Cap Fund 10% (2 month), L&T Emerging Businesses Fund 5% (3 years), and Nippon India Small Cap Fund 5% (1 year). I want to increase my investment. My timeframe is 20 years. In which fund should I increase my investment or some new fund needs to be added or some fund needs to be stopped.