Invest Smartly, Save Tax

All About TDS One of the popular words we hear in the income tax returns is TDS. TDS stands for tax deducted at source. What does it exactly mean? Here, we help you understand the concept and reason behind TDS. According to the Income Tax Act, any person or company making a payment is required to deduct tax when the payment exceeds the prescribed limits. These payments can be in form of salary, commission, professional fees, interest etc. The person/company making the payments needs to deduct tax before releasing it. This tax deducted is forwarded in the account of Central Government. Let’s understand it with the help of an example. TDS Example For example, there’s a company ABC Ltd which hires the professional services of Mr. Shyam, a website developer and he charges Rs. 80000 for his services.   Now, if the TDS rate is 10%, then the company will deduct tax 10% of Rs. 80000 and will make total payment of Rs. 72000 (Rs. 80000 – Rs. 8000) to Mr. Shyam. The Rs. 8000 deduct...

What is Sukanya Samriddhi Yojana or SSY? What is the interest rate? How often does the interest rate change? What are the eligibility criteria? Let us get you all these answers. Sukanya Samriddhi Yojana or SSY is a Small Savings Special Deposit Scheme for girl child. This scheme is especially designed for higher education or marriage needs of the girls. SSY was launched on December 02, 2014 as a part of Beti Bachao, Beti Padhao. The objective of the scheme is to promote the welfare of girl child.

Senior Citizen Saving Scheme (SCSS) As the name implies, Senior Citizen Savings Scheme is primarily for senior citizens of India. If your father has retired or about to retire, SCSS is the simplest investment option available. Here are all the details you need to know before you invest your money in this scheme. Eligibility An SCSS account can be opened by citizen of India who is above the age of 60 years. For those who have opted for voluntary retirement or retired in the age of 55 to 60 years; they can opt for SCSS within one month of retirement. The age restriction has been reduced to 50 years for defence personnel. Operation One can operate the account individually or jointly subject to the Rs. 15 lakh deposit limit in all accounts. Joint account is allowed only with spouse. Thus, one cannot open account with children or relative. Amount The minimum amount of deposit is Rs. 1000 while the maximum remains at Rs. 15lakhs. Interest rate is applicable from ti...

Here are all the answers to your common queries regarding the popular tax saving scheme, Public Provident Fund (PPF). Can I maintain more than one PPF account under my name? No. One can open only one PPF account except for an account under the name of minor. Is there any age limit to enter the scheme? No. Any resident Indian individuals can open their PPF account in any age. What are the documents required for opening PPF? Here is the list of documents: PPF account opening form Nomination form Passport size photograph Copy of PAN card/ Form 60-61 ID proof and Residence proof What is the lock-in period? PPF comes with lock-in period of 15 years but partial withdrawals are also allowed. What is the limit of subscription to PPF account? An individual needs of deposit minimum of Rs. 500 and not more than Rs. 150000 in a financial year. The ceiling on deposits in a financial year is both for individual self account and account opened on be...

Public Provident Fund Account for Minors One major misconception in the minds of people is that PPF cannot be opened in the name of minors. PPF accounts can be opened in the name of minors and here’s everything you need to know about opening a PPF account for your children. Who can open PPF for minor child? Guardians can open PPF account for their minor child where guardian is Either father or mother Guardian under the law can also open PPF account where parents are not alive Guardian when surviving parent is incapable of acting. How much can I Invest in PPF for Minor? Whether you invest in PPF in your own account or in the name of minor in which you are guardian, the tax deduction remains at Rs. 150000 per financial year. Thus, the total amount you can deposit in both accounts of your’s and your child’s should not exceed Rs. 1.5lakh. Special Benefits of PPF Minor Account The lock-in period of PPF account is 15 years. When the child becomes m...

Public Provident Fund or PPF is one of the best investment opportunities available for Indian residents. In addition to good returns, it offers Income Tax deductions as well. Here, we get into the complete details about PPF. How is eligible to open PPF? Resident Indian Individuals Individuals on behalf of minors What is the tenure of PPF? It has a minimum tenure of 15 years and can be extended in blocks of 5 years. What are the benefits of PPF? Interest is fully exempt from Income Tax under Section 80C Attractive interest rates You can deposit as low as Rs. 500 and maximum of Rs. 150000 in one financial year. (1 st  April to 31 March) When can I withdraw money from PPF? Partial withdrawals are allowed before the completion of 15 years. You can withdraw up to 50% of balance in PPF account after completion of five years from the end of year in which subscription was made. This can be better understood with the help of an example. Suppose you...

PPF Withdrawal Public Provident Fund helps to mobilize small savings in the form of investments. The main issue one faces is the long duration which is 15 years. But,  PPF scheme  allows withdrawal before completion of maturity as well. The common questions we address in this blog are when can I withdraw money from PPF? What amount can be withdrawn before maturity? What is the process for withdrawal from PPF? Do withdrawal rules differ from bank to bank? Let us discuss all these in detail. Withdrawal from PPF PPF account closure can be done only upon maturity, which is after completion of 15 years. The entire amount standing to the credit of PPF account gets credited to the account holder along with accrued interest. When the account holder is in needs of funds, he can withdraw the same as it permits partial withdrawals from 5 th  year. Amount that can be withdrawn Type of Withdrawal Reason for withdrawal When to withdraw 50% of balance Partial wi...