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An employee's hard work can be recognised and rewarded through sweat equity shares. It also encourages employees to stay with their employer for a longer period of time. Look over the essential facts regarding these shares immediately. There are a variety of methods in which a firm may show its employees how much they are appreciated and thank them. Incentives like this encourage employees to stay with the company for a lengthy period of time. Shares might be issued as a form of compensation in this regard. Employees Stock Option Scheme (ESOP) and Sweat Equity Shares are two methods through which companies offer stock options to their workers. Sweat Equity Shares : These shares are typically given as a token of appreciation for employees' efforts. These are the shares that employees receive that represent a portion of the company's profit. They utilise it to recruit talent, retain employees, and recognise them for their exceptional performance. According to Section 2 of the Companies Act, 2013, sweat equity shares are defined as equity shares issued by a company to its directors or employees at a discount or for consideration other than cash in exchange for providing their know-how or making available intellectual property rights or value additions. It may be given by a business for a variety of reasons: An employee's or a director's extraordinary participation and efforts toward the completion of a project Expertise in the field Enhancement of the company's value through exceptional contributions and acquisition of intellectual property rights. The Companies Act, 1956, as well as the Companies Act, 2013, govern the issuance of sweat equity shares. If an unlisted firm issues sweat shares, it must adhere to Section 54, whereas a public company must adhere to the market regulator Sebi's rules as well as the Companies Act, 2013. Sweat shares are available to anyone who is a permanent employee of a business, whether in India or overseas. The Company's Act defines an employee as: A person who has been employed in a permanent capacity by a firm in or from outside India for at least one year, OR A director of the corporation, regardless of whether he or she is a full-time director, OR An employee or director of the entity's holding or subsidiary firm in or outside India, as specified above. Quantity of Sweat Equity Shares issued: The Company must not issue Sweat Equity Shares in excess of 15% of its current paid-up share capital or for more than Rs. 5 crore in issue value, whichever is greater. For the remainder of the Company's existence, the Company shall not issue Sweat Equity shares representing more than 25% of the paid-up Equity Capital at any time. Sweat Equity Shares may be issued by start-ups up to 50% of their paid-up capital within five years of their incorporation or registration. A share certificate must be provided within two months of the employees receiving their shares. The shares must be allotted within 12 months of the resolution authorising the issue being passed. A valuer is appointed to determine the sweat equity shares' fair market value. Lock in period: Sweat equity shares are non-transferable and are subject to a three-year lock-in term beginning on the date of issuance. Employees must also obtain a share certificate specifying the same. After the lock-in period expires, the share certificate must state that it has expired. Declarations: After allocating sweat shares, the business is required to declare who received them and the rationale for allocation. Additionally, the amount of shares granted and the terms and conditions governing the sweat equity. Additionally, the percentage of sweat equity shares in relation to total equity post-issuance and paid-up share capital must be declared. Finally, the corporation must distribute diluted earnings per share in connection with the issuance of sweat equity shares. Sweat equity shares are a mechanism for a business to recognise and reward an employee's efforts. Additionally, it enables employees to remain with their organisation for a longer period of time. Additionally, it eliminated the need to compensate staff in the event of a cash flow crisis. It benefits not just employees, but also employers.

The blue-chip fund is one of the various types of mutual fund schemes available. Let's take a closer look at this issue to see if this form of fund may help you attain your financial objectives. What Exactly Is A Bluechip Fund? Before we go into detail about blue-chip funds, let's define blue-chip. A blue-chip corporation is one that is well-known, well-established, and financially sound.   They are equity mutual funds that invest in the equities of firms having a bigger market capitalization in technical terms. According to SEBI, India does not have an official blue-chip fund category. Large-cap funds are referred to as "blue-chip" funds. Large-cap funds put at least 80% of their money into equities from the top 100 firms. So in India blue chip and large cap funds are used interchangeably. What Characterizes Blue-Chip Funds? When you invest in blue-chip funds, you know you're getting equities from the top 100 firms in terms of market capitalization. Here are a few additional characteristics of a blue-chip fund to help you determine if it's right for you. Factor of Risk In comparison to mid- and small-sized businesses, large, well-established businesses are more stable. They can provide stability even amid market turbulence since they have been in the business for a long time and have dealt with dynamic, shifting markets before. Guaranteed Profits Because blue-chip firms are well-known, you may rest confident that you will receive consistent and predictable returns. Investors can base their investments on measures such as fund performance in the past, performance during optimistic and negative market movements, and so on. Management Large corporations have experienced corporate governance and staff with years of expertise. As a result, they are well-prepared to deal with uncertain and unstable market conditions, even during a tumultuous market. Investors are more likely to stay invested because of these management qualities. Blue-chip enterprises have enough cash flow to cover their operations and expansion goals. As a result, companies have sufficient cash flow and may swiftly increase it if necessary, either through the public (through the sale of shares) or through their banking partnerships, which provide them with fast lines of credit or loans. What are the benefits of investing in blue-chip mutual funds? Now that we've covered the definition and characteristics of blue-chip funds, let's look at why they're a smart investing option. Obtain Long-Term Objectives Blue-chip mutual funds are best for long-term goals since the longer you invest, the more likely you are to receive better returns. You can invest in blue-chip funds to build a retirement fund, support your children's further education, and so on. Dividends that are predictable and consistent Dividends that are predictable and consistent Blue-chip corporations are often stable, having the ability to deliver consistent returns in the form of dividends, bonus shares, and other forms of compensation. These characteristics make them a desirable investment option. Diversification of your portfolio Blue-chip firms are often not focused on a single industry; instead, they are scattered throughout a variety of industries. This implies that when you invest in blue-chip funds, you're buying stocks from top corporations across a variety of industries. Even if one industry is unstable, your investment in other industries is unaffected, lowering your investment risks. Moat of Economic Security Blue-chip firms have a competitive edge over other companies in the same industries because they are huge, well-established, and have a lengthy track record. As a result, they have a sizable market share, allowing you to generate inflation-adjusted returns over time. Liquidity An open-ended mutual fund, such as a blue-chip mutual fund, allows you to redeem or withdraw your investment at any time. This characteristic is beneficial to investors, especially during times of financial crisis, since it relieves them of the weight of debt. There is always a risk associated with mutual fund investing. Blue-chip funds, on the other hand, are a more trustworthy investment, particularly if you are a risk-averse investor. To get the most out of your investment, it would be beneficial if you stayed involved for the long haul.

Capital gains tax applies to mutual fund investments. It's based on the profit we make when we sell or redeem our mutual fund assets (units). The profit is the difference between the scheme's Net Asset Value (NAV) on the date of selling and the date of acquisition (Selling Price-Purchase Price). The tax on capital gains is further divided into categories based on the length of time that the asset has been held. A holding period of one year or longer is considered long-term for equity funds (funds having an equity exposure more than 65 percent) and is liable to Long-Term Capital Gains (LTCG) tax. If the total capital gain in a financial year exceeds INR 1 lakh, an LTCG tax of 10% is imposed on equities funds. When making financial plans, keep in mind that your gains are tax-free up to INR 1 lakh. It applies to any investments made after January 31, 2018. In equities funds, profits on ownership of less than a year are subject to a 15% Short-Term Capital Gains (STCG) tax. In the case of non-equity funds (debt funds), long-term is defined as a holding period of three years or longer, and there is a 20% LTCG tax on such assets with indexation, which means the purchase price is increased higher for inflation when computing capital gains. Profits from investments held for less than three years are subject to the STCG tax, which is the highest income tax bracket for individuals.

A person's financial goals determine the gold shape he or she chooses to invest in. Taxes on various types of gold vary. To learn more, let's investigate more. Gold has always been a popular investment option for people all around the world. Gold is seen by many investors as a secure bet for steady profits. Investors in gold have become increasingly prominent as a safe haven investment in the face of rising stock market instability. There have been numerous new routes to invest in gold in recent years, despite the fact that real gold remains the oldest form of gold investing. There are a variety of gold investment options accessible today, including digital gold, real gold, paper gold, and derivative contracts. Digital gold may be purchased using mobile wallets, as opposed to the physical gold found in jewellery, coins, and bars. Paper gold comprises gold bonds, gold ETFs, and so on, whereas derivatives are when you buy gold in the commodities market. A person's financial goals dictate the gold shape he or she chooses to invest in. Taxes on various types of gold, however, vary. Like the tax consequences of actual gold, the tax consequences of gold bonds are not the same. Before beginning an investment in gold, it is important to be informed of the tax consequences of the various gold investments. Physical Form: The amount of tax you owe on gold jewellery or coins is determined by how long you've had them. Physical gold investment capital gains are taxed on a long-term and short-term basis, depending on the time period of the investment. You will be taxed on short-term capital gains if you sell the gold within three years of purchasing it; long-term capital gains if you retain the gold for more than three years and then sell it. Capital gains will be included in your taxable income for the short term and taxed at your income tax level. Your long-term capital gains will be taxed at 20% plus a 4% cess and an extra levy, if necessary. In addition, you will have to pay a 3% GST on the purchase of actual gold, as well as jewellery creation expenses. Physical gold may be sold without TDS, however if you acquire gold jewellery worth more than 2 lakh in cash, 1% TDS is required. Paper Gold: There are several types of paper gold that include ETFs, mutual funds and sovereign gold bonds (SGBs). Gold ETFs and gold mutual funds are taxed like actual gold, however SGBs are treated a little differently. Long-term capital gains tax (LTCG) applies to gold ETFs and mutual funds held for more than three years. Also, the tax rate is the same - 20% + 4% cess. And if you've invested for less than three years, the profits are taxed according to your income tax bracket. An SGB earns a yearly interest rate of 2.5 percent, which is added to your taxable income and taxed according to your income tax brackets. However, after eight years, all SGB profits are tax-free. SGBs have a five-year lock-in period, although early withdrawals are subject to various tax rates. After five years, but before eight, the profits will be taxed at a rate of 20% plus a 4% cess. Making costs for jewellery purchases are also included in this purchase. Physical gold may be sold without TDS, however if you acquire gold jewellery worth more than 2 lakh in cash, 1% TDS is required. Digital Gold: Digital gold, like real gold, is taxed at the same rate and for the same period of time as actual gold. After three years, LTCG is imposed at a rate of 20% plus cess and surcharge on the sale of gold. In contrast, returns on digital gold that has been kept for less than three years are not subject to taxation. A growing number of investors are turning to digital gold because of its many advantages, such as a modest initial cost and the ability to purchase it online. Gifted Gold Parents, siblings and children can give you gold tax-free if you ask. There are certain exceptions to this rule, however, if you get a gift from someone other than the person who gave it to you. Tax-free gifting of gold under Rs. 50,000 from anybody is permitted. If you sell it, you'll have to pay taxes at the same rate as if you bought it. Derivatives of Gold Only businesses may profit from gold derivatives, which are taxed in a highly unique way. If the entire revenue of the company is less than 2 crore, profits from gold derivatives can be claimed as business income and taxed at a rate of 6%. This lessens the tax burden on companies like this one. However, if the company's turnover is more than 2 crore, it cannot be counted as business income. One of the most common kinds of investing is in gold, but investors must be aware of how their gold investment will be taxed. Now that we've learned about the many tax considerations for various gold investments, you can make an informed decision about which one is best for you.

REITs and Real Estate are two prominent means of investing in real estate. Let’s look at the pros and cons of both investments and which one should you select Real estate has traditionally been a favoured method of investment among Indians. It makes a solid complement to any portfolio and enhances your wealth as well as functions as a superb diversification tool. Physical real estate has been preferred by investors for a long time but recently Real Estate Investment Trusts (REITs), have started to acquire popularity. Real Estate Investment Trusts (REITs): A real estate investment trust (REIT) is an investment trust that owns, operates, and funds real estate with the main purpose of generating revenue. It oversees a portfolio of real estate assets that have high value and produce steep rent and leases. REITs often search for large as well as small investors who want to park their money in real estate without having to own or maintain the property themselves. These investors then earn dividends which are effectively the rent or lease that is shared amongst themselves. In India, REITs can only hold commercial buildings. At Least 80 percent of the properties it has invested in must be complete and rent producing while the remaining 20 percent might be under development. REITs are fantastic investment tools for investors searching for a stable payout since once in at least every six months, you will get dividends on your investment in a REIT. Over a long length of time, it also enjoys sustained capital appreciation. Also, as they are regulated by Sebi, REITs have better transparency than conventional real estate dealings. It is audited by specialists and much of the information is published publically. A fundamental downside of REITs is taxes. It not only does not provide you any tax relief but the dividends are also taxed. It can also be influenced by market volatility and thus investors with low-risk appetite must not invest. Real Estate: Traditionally, investing in real estate implies buying a property. These might be residential as well as commercial in nature. Such properties include houses, flats, farmland, office space, etc. As a real estate investor, you may acquire and keep property, or fix it up and sell for a profit. You can also acquire land to develop a property to hold or sell. While there are a number of advantages to purchasing a property including tax savings on home loans, more management, etc there are also certain cons. The biggest drawback is that the full expenditure of a property rests on you. From downpayment to EMIs, to other registrations, you have to deal with all of them. Secondly, you cannot buy a house till and until you have a significant corpus saved. The initial investment in a real estate property is enormous. Also, it is not required that you will be able to sell the property as and when needed. It might take longer to locate a buyer at the price you expect from the property. Real Estate vs REIT You don't have to purchase the entire property with REITs, the initial investment is far lower than in actual real estate. You may easily sell your units with REITs since they are traded in the stock market. This is a big advantage over real estate, where you must find a buyer for your property yourself. You don't own any property if you buy in REITs, but if you invest in actual real estate, you receive a piece of property that you may use as you see fit. Investing in REITs, unlike tangible real estate, does not allow for a property to be cancelled or delayed owing to permission. You don't have to deal with the burden of purchasing and maintaining the property; instead, you simply invest in it. Physical real estate, on the other hand, doesn't pay dividends unless it's put up for rent. If you take out a home loan to buy a property, you can take advantage of tax advantages. Such advantages are not provided by REITs. Even dividends are subject to taxation. REITs and physical real estate are excellent methods to diversify your portfolio and participate in the real estate market. While REITs are a wonderful investment option if you don't have a lot of money saved and don't want to deal with the hassle of owning your own home, if you do have money saved and are ready to invest, actual real estate is also a viable option.

Shortage of cash forced you to postpone renovations on your home? Getting a personal loan from your bank for home improvement doesn't have to wait any longer.  Several institutions have personal loans available for this reason. ' A loan application may be completed in a matter of minutes now that the procedure has become so straightforward. It's understandable if you're asking why a personal loan is necessary when there are specialised home renovation loans available. Your paperwork may be submitted conveniently, and loans will be granted faster, so you can get your work done sooner rather than later. Take a personal loan to renovate your property and reap the following benefits: Disbursement of a loan in a timely manner: In 72 to 120 hours (3 to 5 days! ), you'll have access to the funds you need to complete your home renovation project when you apply for a personal loan through our site. It is one of the numerous advantages of personal loans to have a disbursement period. As a result, it is a godsend in the event of an emergency. An Easy-to-Use System: Personal loans may be applied for online in about five minutes after determining your eligibility. Fewer than a few papers are required by most of the institutions, including your most recent pay slips and bank statements. You may quickly submit these documents to the bank's website, and a customer service representative will take care of the rest. As soon as your loan application has been accepted, you will be notified. That is all there is to it. Minimum Processing Cost: Because the online application procedure for personal loans is so quick and uncomplicated, banks don't charge a processing fee. Almost all of the money you requested will be granted to you, allowing you to proceed with your upgrades as planned. As long as you meet the bank's eligibility requirements, you can get a personal loan from them. All things considered, a personal loan for house improvement is the best option. It's not just a time-saver, but it also eliminates the need to fill out a tonne of paperwork.

Assuming you've done everything correctly, there's nothing more you can do. If you're desperate for a loan, you know what it's like to have your application refused. Make sure you have all of your ducks in a row before applying to a new bank. It is entirely up to the bank to accept or reject your application for a house loan. If your loan application is refused, your bank may or may not provide you with a detailed explanation of why it was declined. Even if you can't demand answers or explanations from them, you should be informed of the circumstances in which your application is denied. The following is a list of some of them. Credit Score: Most of the time, getting turned down for a house loan is due to a poor credit score. Rejection is possible for with one missing credit card payment or income discrepancy. CIBIL does not take into account your income when calculating your credit ratings. Capacity for Repayment: In order to determine whether or not you can afford to repay a loan, a bank representative does a thorough background check on your income. However, your house loan may be denied if the amount borrowed exceeds your ability to repay it. upfront. Documents Required: Obtaining a house loan requires the submission of relevant documents, proof, and paperwork (due to the enormity of the amount involved). Applicants who fail to complete their paperwork or provide incorrect information or whose signatures do not match will have their applications rejected. Insufficient funds: If you lose or resign your employment in the middle of the loan application process, your bank will learn about it through background checks. Your loan is refused because you have lost your ability to repay it, despite the fact that it passed the first approval stages. Outstanding Loans: When you apply for a house loan, the bank has the ability to deny your application if your obligations exceed your income, even if you have no debts. The bank has the right to believe that your remaining income (after meeting all of your current obligations) is not sufficient to cover the EMI on the home loan you sought. Contradicts Bank Regulations: Sometimes, the bank's internal policies may uncover flaws in construction or decide that the borrower's credit profile is poor and hence deny the loan. A smart alternative is to talk to the bank authorities and find a way around it—through collaterals or guarantors—if this is the situation. If a structure is more than 20 years old, banks may refuse to lend. As a result, before moving banks to acquire a loan, make sure you examine all areas and consider the bank's perspective to guarantee your loan is approved and you can start living your goal.

While there has been a considerable rise in internet transactions during the shutdown, there have also been multiple instances of people losing money to fraud. The most typical ones happen when you see a phone number in an advertising that you assume belongs to a local business, a courier service, an employment agency, etc., and you contact it. You might also be using a social network or internet search tool to get your bank's customer service number. The individual on the other end of the line requests a Rs 5 test transfer from a UPI app. You do so, but the transaction is unsuccessful. After then, the ostensible seller/service provider offers to do it for you. He requests that you give your OTP, after which the funds will be sent. However, after you share the OTP, larger sums are removed from your account in a matter of minutes. It might be a single large transaction followed by a series of smaller purchases. You've already lost a lot of money by the time you realise what's going on. While rushing about to register a police report, you discover that the phone number you dialed is no longer in operation. And the store/agency who placed the ad claims it never done so. Don't discuss internet transactions with strangers: Engagement through any channel – phone calls, messaging, or social media – is one of the simplest methods for scammers to target you. When it comes to campaigns that promise big discounts or great bargains in return for personal financial information, be very cautious. Never give out your OTP to anyone: OTPs are sent by banks to assist verify transactions. Your OTP will never be requested by a bank or a bank staff. So, if you receive a communication, even if it appears to be from your 'bank,' be aware that it is a scam. Never give out your financial information, login credentials, or OTP to anybody over the phone or over text message, and never on a shared network computer or device. Don't click on Web links that you don't recognise: Customers are tricked into clicking on bogus links by fraudsters, who then get access to their accounts. Because of this, you should never click on a random link or proceed with a transaction that was not started by you. There are no fees associated with receiving money via UPI, and any site saying otherwise is a scam. Unknown applications should be avoided: Fake UPI applications and remote desktop sharing apps are occasionally found in the Play Store and App Store, despite their best efforts to remove them. Keep them off your phone. Only use banking applications that have been approved by the Federal Reserve. The app's name may be found on the bank's website. Before installing an app, make sure it has a large number of downloads and good ratings. Only use the official customer care  lines to report problems: Always contact the support team of your bank or UPI app if you have any issues with a transaction. If you have any worries that the call is bogus, hang up and call the customer care instead. Always call the customer service number listed on your bank's official website to get help. Private phone calls should not be accepted by you.

Fees for transactions: A current account allows you to make as many transactions as you like. Banks, on the other hand, levy a fee when the number of transactions exceeds a certain threshold. A Minimum Balance is required: The majority of current accounts have a minimum balance requirement. Premium services include: Pick-up and deposit of cash, access to after-hours banking, credit cards, free pay orders, demand orders, Cheque Book, Digital payments – NEFT, RTGS, IMPS, and Digital Banking services such as Retail Internet Banking/Corporate Internet Banking and Mobile Banking are all available through some banks. These services are not free. Limit on overdrafts: After confirming the customer's reliability, most banks provide Cash Credit and/or Overdraft capabilities to Current Account customers. Essential Services: One should also look for a bank that offers key services like online banking, mobile banking, cash management services, IT services, ERP services, multi-location cash deposits and money transfers, wire transfers, bill payment services, and debit card access. Interest rates: While a current account earns no income,Account Holder might move excess cash to fixed deposits to earn interest. One must find a bank with the greatest rates in which to deposit her surplus cash. The Bank's Size: A bank with a broader network of branches may be in a better position to provide services in more areas. It would also have a more extensive ATM network, which would be beneficial. Online services: The bank should also provide online services for current accounts. This ensures that the person may open an account quickly and with minimum paperwork. He or she would also be able to complete all following transactions without having to leave the comfort of her home or office. Once a person chose a bank, all she has to do is gather all of the necessary documents, such as identification, address proof, PAN card, and business registration documents (depending on the type of business entity), either scanned if opening online or in hard copy if opening in person, and get ready to fill out her application and make her initial deposit.

Debit cards have facilitated financial transactions for everyone since their inception. Debit cards provide convenient access to cash in your bank account, while credit cards make obtaining a line of credit as simple as a swipe. The introduction of virtual cards is one of the most recent advancements in this sector. Numerous banks have begun offering account-linked virtual payment cards, which come with a slew of features. For instance, Axis Bank's Full Power Digital Savings account comes with its own e-debit card in addition to the physical Online Rewards card. Here are several strong reasons to obtain a virtual debit card immediately. Activation is immediate- Even if you receive a physical debit card with your bank account, it may take a few days for it to arrive at your home because the bank sends it through courier. The password is often supplied a few days later for security reasons. As a result, valuable time is wasted as you wait for the card to be activated so you may start taking advantage of the account's features. This shortcoming is circumvented by the quick activation offered by a virtual debit card.  You may use this to make purchases and payments online right away. Connected services like mobile and online banking can also be activated quickly. Protection and safety- To avoid misuse, there is no risk of the card being stolen or forgotten. It's also not possible to clone it and use it . It doesn't matter how many virtual cards you have if you don't keep any of them in your wallet because all of your card information will be accessible online and not in your wallet. You don't have to worry about losing your wallet since you won't be using one. The e-debit card may also be used to withdraw cash from ATMs without the requirement for a debit card. Blocking and Unblocking are a Simple- If you think that a physical card is being misused, the process of blocking or cancelling it might be time-consuming. The process of getting a new physical card reissued might take days. . That way, you may get a new card in a matter of minutes and keep your account protected from any online security breaches. All of your blocking and unblocking requests are executed instantly without the need for a physical card. Rewards points and shopping discounts- Additionally, you may earn reward points and receive other perks with the correct virtual debit and credit cards. In addition to the cashback on Amazon purchases, you can receive up to 15% cashback on Grab Deals with all your cards. Buying online may be made even more profitable by taking advantage of cashback deals. When linked with the correct digital savings account, an e-debit card will be most effective.

A task well began is a task half completed. If you are the kind that waits until the end of the fiscal year to begin tax investments, this year, take a different strategy. Begin early to avoid last-minute inconveniences. By selecting the appropriate investment items, you may both avoid tax and earn a profit. In addition, since the Union Budget 2020 included an optional New Tax Regime for individual assesses (and Hindu Undivided Families), you need to understand which one is best for you and plan appropriately. Let's see how we can do this. At the beginning of the financial year, select a tax system- Income tax rates are lower in the New Tax Regime, but there are no tax breaks or deductions, including the standard deduction, available. Exemptions and deductions that were formerly available under the Income Tax Act can still be taken advantage of if you opt for the Old Tax Regime. However, the taxpayer cannot have company income if they want to use the Old or New Tax Regime. Thus, the Old Tax Regime and the New Tax Regime are primarily available to salaried income earners and pensioners. Additionally, the option may be utilised only once every calendar year. As a result, the earlier you begin, the better. Why should you invest early in tax-advantaged instruments? Among the many advantages of beginning a tax preparation exercise early are the following: You can pick appropriate Section 80 tax-saving investment instruments based on your risk tolerance, larger investing objectives, financial goals, and time horizon. This enables you to supplement your tax and investment preparation efforts. With enough time on your hands, you can effectively and comprehensively save tax and get control of your money. In the case of instruments such as Equity Linked Savings Schemes, you will have sufficient time to study the fund's features such as returns, the fund manager's track record, the fund's portfolio, and so on, and make an informed choice. Due to the three-year lock-in term, you must exercise caution while picking a fund. Even with life insurance, a long-term product, you may take your time and find one that fits your needs. This manner, you may avoid the trouble of having to quit an investment mid-stream if it turns out not to be a good fit for you. If you do not have the complete sum to invest immediately, you can spread it out over the course of the year. Regular monthly investments are possible with instruments such as ELSS and Public Provident Fund. Additionally, you will benefit from the compounding effect. Each payment you make (assuming you invest monthly) is added to the previous one and yields a larger rate of return over time. Section 80 C's tax advantages: In addition to Section 80 C, there are a number of other tax planning avenues that you may be able to claim tax exemptions. Many of them are used for a wide range of purposes, from health care and education to saving money and investing in the future. To get the most out of them, be sure to make use of them all. These include: For example, Section 80D covers the cost of medical insurance; Section 80DD covers the care of a disabled dependant; and Section 80D covers the cost of medical treatment for you. Education Loan Repayments - Section 80E Repayment of a student loan taken out to attend college Section 80EE allows first-time homebuyers to receive an extra tax advantage of Rs 50,000 and Section 24(b) interest paid on the house loan for investment in real estate, respectively. For those over the age of 60, interest earned from bank deposits, post office deposits, and interest on deposits with a co-operative society can be deducted under Section 80TTA of the tax code. Section 80G of the philanthropy deals with philanthropic donations to specified funds and organisations. Who benefits from the old tax system? Choosing between the old and new tax regimes is a matter of personal preference. There are some exceptions, but in general, people who want both tax savings and wealth creation should stick with the Old Tax Regime [where various deductions under Section 10 and Chapter VI-A of the Act, i.e. Section 80] if their gross total income is high, they have a home loan, and they want both wealth creation and tax savings." Individuals over the age of 60, who have a gross income of up to Rs 5 lakh, are eligible for additional tax reduction under the Old Tax Regime. Make a concerted effort to begin your tax preparation as soon as the new fiscal year begins, and weigh your alternatives carefully. Instead of wasting time and money, procrastinating will only result in mediocre tax savings. When it comes to tax preparation, remember that a larger discretionary income and more spending power are the result of holistic tax planning.

Dhan Rekha is a non-linked, non-participating, individual savings life insurance plan offered by the state-owned Life Insurance Corporation of India (LIC). The plan is one-of-a-kind. Female lives have particular premium rates, and the plan is available to the third gender. According to the insurer, Dhan Rekha pays a percentage of the base sum assured as a survival benefit at regular intervals beginning with the end of the premium-paying term, as long as the insurance remains in existence. Without subtracting the money-back amount and cumulative guaranteed additions, the policyholder will get the entire sum insured. From the sixth policy year through the conclusion of the policy term, guaranteed additions will accrue at the end of each policy year. For single premium death, the sum promised is 125 percent of the base sum assured plus guaranteed increases. This insurance offers financial assistance to the policyholder's family in the event of the policyholder's untimely death during the policy's term. At maturity, the policyholder receives the whole sum promised, less the money back amount received and accumulated guaranteed additions. This plan assists the policyholder's family financially in the case of the policyholder's untimely death during the policy's term. There is an option to receive Maturity and Death Benefits in five-year payments rather than in one lump amount. Payment options of 10 years, 15 years, or 20 years are available for the premium. For restricted payment premiums, the death benefit is equal to 125 percent of the basic benefit or seven times the Annualized Premium, whichever is greater, but not less than 105 percent of all premiums paid up to the date of death, including Guaranteed Additions. The plan is available through agents/intermediaries such as POSPLI/Common Public Service Centres (CPSC-SPV) and the website www.licindia.in. The lowest sum promised under the Dhan Rekha plan is Rs 2 lakh, while the maximum value assured is unlimited. Additionally, the minimum age of entrance varies from 90 days to eight years, depending on the policy term selected. The maximum age of entrance varies between 35 and 55 years, depending on the insurance term selected.