Personal Finance Print

Your Queries – Income Tax: Gains from share trading taxed under business profit, file ITR 3/4

Separate disclosure of each source of income shall have to be made in the ITR Form, whether or not you choose to be governed by the new regime of taxation.
non-resident is required to file an Income Tax Return only if his total income, from all sources (after giving effect to exemption in respect of income from NRE account) exceeds maximum amount not chargeable to tax (i.e. Rs 2.5 lakh).

Your Money: Why we need to plan for retirement at every life stage

A structured retirement planning starting at an early age will help unleash the power of compounding for a longer period of time, thus helping accumulate a bigger corpus.

Mutual Funds: Skin-in-the-game rule — In investors’ interest

Sebi’s skin-in-the-game rule is a necessary step given the larger investing ecosystem which includes investors as major stakeholders

Your Money: How to evaluate cash flow management efficiency

A firm should have positive figure for cash from operations to attract the attention of investors

Health Insurance: Get cashless Covid-19 claims within one hour

Irdai has ordered health insurance companies to settle cashless claims of Covid-19 patients within an hour of receipt

General Insurance: Premium growth at 7% in FY21 due to retail health, fire

Share of retail health in overall general insurance premiums (ex-crop) increased to 16% in FY21 from 13% over FY2018-20

Embedded Value: Life & health insurance more critical today

Death due to Covid is covered under any life insurance policy while Covid patients are fully covered by any standard health insurance policy

YOUR QUERIES: INCOME TAX- For NRIs, only income sourced from India will be liable to tax

Every individual having income above the prescribed threshold, has to declare particulars of income earned/ loss incurred under different heads, deductions/ exemptions claimed and resultant tax payabl

Parents of spouse/ in-laws are not covered in the said definition, hence income tax exemption has been denied.

Your Money: Smart tips for selecting the right mutual fund

When selecting mutual funds, avoid putting all your money in a single asset category or a single mutual fund product.

Optimal diversification can help reduce the investment risk to a great extent.

Stock markets: Know grouping of shares in BSE before investing

While ‘A’ group shares are good for trading and investing purposes, keep away from ‘Z’ group shares as they fail to fulfil even the listing norms of BSE

Group ‘B’ accommodates all the shares that do not fall into any of the above discussed categories. Generally ‘B’ group shares witness normal trading volumes and come under the rolling settlement system. As on date, 2,216 companies are classified under group ‘B’.

Health insurance: Network hospitals have to give cashless services

Irdai has directed insurers to ensure availability of cashless facilities with all network hospitals for treatment of Covid-19

The ombudsman acts as a counsellor and mediator and arrives at a fair recommendation based on the facts of the dispute.

Your Money: Short selling: Stock trading weapon for bears

Traders who are long, can sell the securities whenever they desire. Their philosophy is ‘buy low and sell high’.

The margin trading agreement will usually contain a stock loan consent clause.

YOUR QUERIES: LOANS- Taken gold loan? You have to give more collateral as prices have fallen

The loan amount depends on the value of the collateral you provide to the bank. It is true that the collateral value has dipped in the last year.

For loan approval, the lending institution looks at the repaying capacity to arrive at a decision.

Your Money: Relation between return on capital and return on equity

A firm should earn an ROE which is higher than its ROC to make its stock worth buying

While assessing the economic attractiveness of a target stock, young equity investors must ensure that the target firm earns an ROE which is higher than that of its ROC.

Equity investing: Safeguard your portfolio against a downturn

In volatile times, do not sell equity investments. Stick to your asset allocation plan and use the correction to buy quality stocks for long-term

Experts suggest that investors stick to their asset allocation plan, remain focused on the long-term goals, diversify their portfolio, and stay away from panic in the markets.

Life Insurance: Premium collections up 90% in March 2021

Life insurers likely to see strong growth in individual annualised premium equivalent in FY22

Private players reported 8% y-o-y growth in individual APE for FY21, significantly higher than initial expectations at the start of the pandemic.

Options for Senior Citizens: Fixed income options for lower tax bracket

For people in lower tax bracket, any interest income taxable at the marginal rate will lead to tax efficiencies, with the exception of tax-free bonds

Interests on deposits are taxable under the head “other income” at the marginal slab rate, similar to coupon from bonds.

LIC collects highest-ever Rs 1.84 lakh-crore new premium in corona period

In 2020-21, LIC has achieved its highest-ever first year premium income of Rs 56,406 crore under individual assurance business with a 10.11% growth over last year.

LIC also procured 2.10 crore policies, out of which 46.72 lakh were procured in March alone.

Your Queries (Income Tax): How is capital gains tax calculated with reference to selling of land?

For tax purposes, immovable property, i.e., land or building is classified as long-term capital asset if it is held for a period exceeding 24 months, else, it is regarded as short term capital asset.

non-resident is required to file an Income Tax Return only if his total income, from all sources (after giving effect to exemption in respect of income from NRE account) exceeds maximum amount not chargeable to tax (i.e. Rs 2.5 lakh).

Your Money: The art and science of stock picking

The unique value of a trader or investor is his or her ability to detect undervalued and over-valued assets. If an asset is under-priced it should be bought.

Equity Investing: Know how value averaging investment works

Value averaging investment plan mandates the investor to start with the end goal in mind and even allows the investor to sell if market conditions are favourable

Your Queries: Mutual Funds – Is it safe to invest in international equity funds?

You can invest in international equity funds via Indian MF firms

Few of these funds also follow a passive investment strategy, wherein they track a particular global index.

Know why you need to buy a critical illness insurance plan

This financial burden can be supported by a special financial protection plan called ‘Critical Illness Plan’. You should purchase a critical illness plan along with a health insurance plan.

Insurance: Irdai cracks down on misleading ads

An advertisement will be labeled as misleading if it omits to disclose or discloses insufficiently, important exclusions, limitations and conditions of the policy

However, an insurance agent will not have to take written approval of the company if the advertisements are developed by the insurer and provided to them.
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