Archive by Author Anupama Shukla - Team MoneyWorks4me
Do not let the Tax Monster eat into your Retirement Income

Do not let the Tax Monster eat into your Retirement Income

Retirement marks the beginning of a new phase of an individual’s life. It’s a transition from a lifetime of work to a time when one can relax, spend time with the family and pursue other interests. However, retirement also marks a stark transition in one’s finances. Savings made over one’s working years has to provide for all the needs now, with many a time no regular stream of income. In the previous blog, we discussed how a couple with kids, either minor or adult can benefit from tax planning. Now, we go a step ahead in explaining how a couple, post retirement, can benefit from tax planning. Retirement does not necessarily mean the end of income and thus, identifying the sources of income on which one pays tax is important. In this article, we have considered two scenarios: •    Retired govt. employee with monthly pension •    Retired private employee Scenario […]

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Category:Learn
A child brings Joy, Responsibilities & Tax Benefits!

A child brings Joy, Responsibilities & Tax Benefits!

All of us love children. Well, most of us do. But no one can contest the fact that expenses of raising children, their education and marriage are rising with each passing day. These expenses form a substantial outflow from one’s income. But are you aware that certain expenses or investments made in your child’s name can save you taxes? In the previous blog, we discussed how a newlywed couple can benefit from tax planning. Now, we go a step ahead in explaining how a couple with children, who are either minor (below 18 years of age) or adult (above 18 years of age), can benefit from tax planning. In this article, we have considered two scenarios:  Couple having minor child  Couple having adult child Scenario 1 Ramesh, a 38 years old engineer in Pune, has a 8 years old child. His annual income is 15 lakhs p.a. and his annual […]

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Category:Learn
Best tax saving plan, as you enter the tax world!!

Best tax saving plan, as you enter the tax world!!

Getting your first job, the credit of your first salary – all are occasions worth remembrance. Do you realize, this also marks your entry into a world, which is driven by money? Suddenly you find yourself receiving all sorts of offers ranging from pizza to credit cards at a click of a button. And then BANG!! Government too, wants its share in the form of taxes!! Well, you didn’t expect that! Did you! However, that’s a bitter truth; your entry into workforce also marks your entry into taxpayers’ list. In this first article of the series, let’s consider a recent graduate who has just entered the corporate world and earns an annual salary of Rs. 4 lakhs. The Income Tax rates applicable for the FY ending March 31, 2014 are: Considering the Income tax slab for FY 13-14, here is how, his tax would be calculated: Section 80C offers various […]

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Category:Learn
Investment Chart

Rajiv Gandhi Equity Savings Scheme (RGESS) – Lucrative OR just another tax saving scheme in the offering?

It is that time of the year, when salaried employees are busy with the tax planning for the new financial year. Avenues are being finalized which would give them maximum tax deduction. Rajiv Gandhi Equity Savings Scheme (RGESS) is one such tax saving option introduced recently. RGESS was announced in the Union Budget 2012-13, with the aim of attracting retail investors to the capital market. Further, the Union Budget 2013-14 announced modifications to the scheme, to divert investments from gold and other asset classes to equity markets. Since the announcement, there was confusion surrounding RGESS regarding first time investors, eligible securities and lock in period, which have, now, been cleared in the Union Budget 2013-14. Let’s first try to understand some of these terminologies which are important in understanding the overall concept of RGESS. RGESS is meant to attract ‘first time investors’ to the equity markets. However, the definition of […]

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FCCB – Is it really cheap for companies?

FCCBs or Foreign Currency Convertible Bonds, as fancy as they may sound, are still a mystery to many.
News and views, time and again, talk about companies issuing or redeeming FCCBs. Many speak of it as a cheap bond, as it enables a firm to raise funds at a lower rate of interest, while others doubt it for having any positive impact on the company’s financials and stability.

But, as is it said: There are no free lunches! While these do seem to be cheap in for the company prima facie, they come at a cost. So, what are these costs that make these cheap FCCBs, ‘not-so-cheap’, eventually? And should you invest in such companies?

Let’s find out…

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