Advance Tax

As the name suggests, it refers to paying a part of your yearly taxes in advance. Advance tax is the income tax payable if your tax liability exceeds Rs 10,000 in a financial year. Advance tax should be paid in the year in which the income is received.
Advance tax is applicable when an individual has sources of income other than his/her salary. For instance, if one is earning through capital gains, interest on investments, lottery, house property or business, the concept becomes relevant.
Any rebate due fetches you an interest of 0.5 per cent every month, or, six per cent annually, as in the case of an income tax refund. However, if you don’t pay the advance tax on time, you’ll be charged one per cent every month, or, 12 per cent a year.

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Save Income Tax : Section 80C and Section 80D

Section 80C Deductions
Section 80C of the Income Tax Act  allows certain investments and expenditure to be tax-exempt. The total limit under this section is Rs. 100,000 (Rupees One lakh) which can be any combination of the below:
* Contribution to Provident Fund or Public Provident Fund
* Payment of life insurance premium
* Investment in pension Plans
* Investment in Equity Linked Savings schemes (ELSS) of mutual funds
* Investment in specified government infrastructure bonds
* Investment in National Savings Certificates (interest of past NSCs is reinvested every year and can be added to the Section 80 limit)
* Payments towards principal repayment of housing loans.Also any registration fee or stamp duty paid.
* Payments towards tuition fees for children to any school or college or university or similar institution. (Only for 2 children)
The investment can be from any source and not necessarily from income chargeable to tax.

Section 80D: Medical Insurance Premiums
Medical insurance, popularly known as Mediclaim Policies, provide deduction up to Rs 30,000 . This deduction is additional to Rs.1,00,000 savings. For senior citizens, the deduction up to Rs. 20,000 is allowable. This deduction is available for premium paid on medical insurance for oneself, spouse, parents and children.It is also applicabe to the cheques paid by proprietor firms.

Interest on Housing Loans
For self occupied properties, interest paid on a housing loan up to Rs 150,000 per year is exempt from tax. However, this is only applicable for a residence constructed within three financial years after the loan is taken and also the loan if taken after April 1, 1999.
If the house is not occupied due to employment, the house will be considered self occupied.
For let out properties, the entire interest paid is deductible under section 24 of the Income Tax act. However, the rent is to be shown as income from such properties. 30% of rent received and municipal taxes paid are available for deduction.
The losses from all properties shall be allowed to be adjusted against salary income at the source itself. Therefore, refund claims of T.D.S. deducted in excess, on this count, will no more be necessary.

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How To Save Income Tax In India?

As per the government law, it is mandatory for every citizen to pay the income tax. Tax assessment takes place every year in the month of March. Government has given so many benefits to the taxpayers. Tax payment is applicable for a person who is generating profit by any mode either by the business or from the job. In any of the public or private limited company, there are shareholders then the tax will not be exempted on the individual basis. The calculation is based on the annual profit generated by the organization.
In India, there are various tax slabs for the male and female and as per the annual salary, the tax deduction takes place. If a male individual earns (in Rs) 160,001 to 500,000, the tax would be 10% if it exceeds from 500,000 to 800,000 the tax would be 20% if it exceeds from 800,000 the tax would be 30%. Tax slabs for the female individual is different from the male individual, the tax limit for the female start from 190,001. For 190,001 the tax is 10%, from 500,000 to 800,000 tax is 20% whereas for above 800,000 tax would be 30%.

To get the tax benefit,  it is important to show the investment proof. Tax waiver is applicable if the investment has done in the following:

Insurance Policy- Government has given tax benefit on different type of insurance policies such as life insurance policy and health Care. This should be noted that no tax benefit is given for the General insurance like motor insurance etc.
Mutual funds – There are several government and private mutual funds available in the market such as State Bank of India mutual funds, Franklin Templeton, Kotak Mahindra and ICICI. Investor has to take care that tax waiver is available only on those mutual funds that have a locking period; a fund without a locking period is not eligible for the income tax benefit.
Home Loan – If an individual has purchased any property on loan, a tax waiver is applicable on it.
House Rent – House rent is another mode to save the income tax. While filing for income tax, tax receipt should be attached.


While filing for the income tax it is useful to attach the receipt of the documents as per the above list.

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New Fund Offers

Schemes Regular

Name		Open Date	Close Date
Axis Gold Fund (D)		30-09-11	14-10-11
Axis Gold Fund (G)		30-09-11	14-10-11
DSP BR World World Agriculture (D)		30-09-11	14-10-11
DSP BR World World Agriculture (G)		30-09-11	14-10-11
ICICI Pru CPO Fund - Sr-IV 36M (D)		22-09-11	05-10-11
ICICI Pru CPO Fund - Sr-IV 36M (G)		22-09-11	05-10-11
L&T MIP - Wealth Builder Fund (G)		27-09-11	11-10-11
L&T MIP - Wealth Builder Fund (MD)		27-09-11	11-10-11
L&T MIP - Wealth Builder Fund (QD)		27-09-11	11-10-11

previous fund offers

Schemes FMP

Name		Open Date	Close Date
Axis FTP - Sr 16 (370D) (D)		22-09-11	05-10-11
Axis FTP - Sr 16 (370D) (G)		22-09-11	05-10-11
Axis FTP - Sr 16 (370D) (QD)		22-09-11	05-10-11
Birla SL FTP Sr-DQ (370D) (D)		03-10-11	11-10-11
Birla SL FTP Sr-DQ (370D) (G)		03-10-11	11-10-11
BNP Paribas FTP Sr-22 E (369D) (AD)		29-09-11	13-10-11
BNP Paribas FTP Sr-22 E (369D) (DM)		29-09-11	13-10-11
BNP Paribas FTP Sr-22 E (369D) (G)		29-09-11	13-10-11
BNP Paribas FTP Sr-22 E (369D) (QD)		29-09-11	13-10-11
DSP-BR FMP 12M - Sr-14 (D)		03-10-11	10-10-11
DSP-BR FMP 12M - Sr-14 (G)		03-10-11	10-10-11
DWS FTF-Sr 91 (3 years) (D)		04-10-11	18-10-11
DWS FTF-Sr 91 (3 years) (G)		04-10-11	18-10-11
HDFC FMP 24M Sep 11 Sr19 (1) (D)		30-09-11	10-10-11
HDFC FMP 24M Sep 11 Sr19 (1) (G)		30-09-11	10-10-11
HDFC FMP 370D Oct 11 Sr19 (1) (D)		03-10-11	05-10-11
HDFC FMP 370D Oct 11 Sr19 (1) (G)		03-10-11	05-10-11
ICICI Pru FMP Sr-57-3Yr- Plan B (D)		07-10-11	17-10-11
ICICI Pru FMP Sr-57-3Yr- Plan B (G)		07-10-11	17-10-11
Reliance FHF - XX Series 32 (D)		03-10-11	11-10-11
Reliance FHF - XX Series 32 (G)		03-10-11	11-10-11
SBI DFS 18 Months (7) (D)		29-09-11	07-10-11
SBI DFS 18 Months (7) (G)		29-09-11	07-10-11
SBI DFS 90 Days (50) Oct 2011 (D)		03-10-11	05-10-11
SBI DFS 90 Days (50) Oct 2011 (G)		03-10-11	05-10-11

 

Mutual Fund New Fund Listings

Scheme	Fundclass	NAV	Returns(%)
Peerless Equity Fund (G)	Equity Diversified	10.00	0.01
SBI Gold Fund (G)	Gold	9.54	-4.65
Union KBC Liquid Fund (G)	Money Market	1026.08	10160.77
Union KBC Equity Fund (G)	Equity Diversified	8.74	-12.60
Pramerica Treasury Advantage (G)	Debt - Short Term	1031.39	3.14

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Upcoming Mutual Fund Offers

Date of filing with SEBI	Draft offer documents on SEBI
16-09-2011	DSP BlackRock Dual Advantage Fund - Series 1 to 10
16-09-2011	Escort Fixed Maturity Plan - Series III
13-09-2011	SBI Capital Protection Oriented Fund Series VI
13-09-2011	SBI Capital Protection Oriented Fund - Series V
13-09-2011	SBI Capital Protection Oriented Fund Series VI

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