Education & Career Success Guide: money saving tips
Showing posts with label money saving tips. Show all posts
Showing posts with label money saving tips. Show all posts

5 Investment Schemes With Low Risk And High Gain

07:43
5 Investment Schemes With Low Risk And High Gain

Investments, where the element of risk is almost zero, can be called as safe investments. Stocks, mutual funds, insurance, and many more private savings schemes are available in the market, but there are a few schemes which ensure safety for investors.

These are five good bets for people who would not like to take risks.

1. Sukanya Samriddhi Account

Sukanya Samriddhi Yojana was launched by the government to encourage education of girl children. Sukanya Samriddhi Account can be opened at post offices and commercial banks. The investment made under this account is eligible for tax benefits under section 80C of the Income Tax Act. Sukanya Samriddhi Account has a very long-term holding tenure.

2. Post Office Time Deposit Account

Post Office Time Deposit Account is a good option for investors looking at building a corpus for both short and long-term. The investor can deposit money for a term and he or she will receive money with interest earned at the end of the term. The account can be opened for a minimum of 1 year and the maximum tenure is 5 years. Premature closure of account can be also availed. For 1 year, the investor will get 6.60 percent interest (compounded quarterly).

3. National Savings Certificate

People who are looking for a safe investment avenue can open a National Savings Certificate (NSC) by investing Rs 100 (or multiples of 100) as an initial investment and increase the amount when feasible. The government revises this rate every quarter. Investors can purchase NSC after furnishing the know your customer (KYC) documents. NSC only has cumulative interest payout option, and investments qualify for tax rebate under section 80C.

4. Sovereign Gold Bond

Investment in the yellow metal is deemed as a safe haven during financial uncertainties. Sovereign Gold Bond (SGB) is an alternative to holding physical gold. It is backed by the government and investors will be paid interest on the amount of initial investment at the rate notified by RBI. Apart from the interest, the SGB investors will be eligible for a 2.50 percent per annum payable semi-annually on the nominal value. Minimum investment in the bonds is one gram and the maximum limit of subscription is 500 grams per person per fiscal year (April-March).

5. National Pension Scheme

National Pension Scheme (NPS) is a retirement investment scheme managed by Pension Fund Regulatory and Development Authority (PFRDA). NPS investors can avail tax benefits under section 80CCD of the Income Tax Act. There are two types of accounts under NPS — Tier I and Tier II. In Tier I, the contribution made cannot be withdrawn and in Tier II, the contribution can be withdrawn anytime.
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10 Incomes You Need Not to Pay Any Tax On

12:50
10 Incomes You Need Not to Pay Any Tax On

It is believed that death and taxes can't be avoided in life. There is also a common perception that only income falling under the basic exemption limit (ie, Rs 2,50,000 for individuals of less than 60 years) is tax free. However, very few people know that apart from this basic exemption limit, taxpayers also get tax benefits on certain incomes. Yes, you heard it right! The incomes which are tax free are governed by Section 10 of the Income Tax Act -- some of which are wholly exempt, while some are partly exempt.
Take a look at 10 incomes which are tax free, wholly or partly:
1. Income from Gratuity:

As per section 10(10) of the Income Tax Act, if an employee of the Central Government, State Government or local authority, on death or retirement, receives gratuity, then it is fully exempt from tax. However, in case of a private sector employee, gratuity received from one's employer is exempt from tax up to a maximum of Rs 10 lakh, subject to conditions specified under the Income Tax Act. Good news is that the government is going to enhance the ceiling of tax-free gratuity to Rs 20 lakh from Rs 10 lakh soon, and Lok Sabha has already passed the related bill.
2. Amount received under Voluntary Retirement:

As per Section 10(10C) of the Income Tax Act, if a person receives any compensation at the time of voluntary retirement or termination of his service, then such amount shall be exempt from tax, but subject to the limit of Rs 5,00,000. The compensation amount, which is received under this scheme, is determined in accordance with guidelines prescribed under Rule 2BA of Income-Tax Rules, 1962.
Unlike gratuity, which is exempt for government employees without any limit, the voluntary retirement scheme is taxable for the government employees over and above Rs 5,00,000. One thing to be kept in mind is that this exemption can be availed only once in a lifetime i.e. once allowed for any assessment year, then no exemption shall be allowed for any other assessment year.
Further, where any relief u/s 89 has been availed of in respect of the amount received under the voluntary retirement scheme, no exemption under Section 10(10C) shall be allowed in that relation. In other words, an individual can claim either exemption under Section 10(10C) or relief u/s 89, but not both together.

3. Allowance for foreign services:

As per Section 10(7) of the Income Tax Act, if an Indian resident renders services outside the country and receives any perquisites outside the country, then it is tax free. This section specifically exempts the allowances for government servants which they might receive when working outside India.

4. Dividend income from shares & equity-oriented mutual funds:

As per section 10 (34) of the Income Tax Act, any dividend received from investing in the shares of an Indian company is not liable to tax up to Rs 10 lakh. The reason for the same is that the I-T department has already received tax from the company on that income. Likewise, dividend income from an equity-oriented mutual fund is also exempt from tax.

5. Agricultural Income:

India is primarily an agrarian economy. So, as per Section 10 (1) of Income Tax Act, agriculture income in terms of rent or from any agriculture produce is exempt from tax. The objective of this move is to encourage the agricultural sector. However, "agricultural income exceeding Rs 5,000 will have to be added to one's total income for the determination of the income-tax slab of the individual. Further, any capital gain on the sale of an agricultural land in a rural area is not chargeable to tax as per section 2(14) of the Income Tax Act. Additionally, as per section 10(37) of the Act, compulsory acquisition of agricultural land is exempt from tax. 

6. Pension received by certain awardee:

As per section 10(18) of the I-T Act, income received by an individual or any member of his family by the way of pension or family pension is exempt from tax if such individual has been in service of the Central/state government and has been awarded Param Vir Chakra or Maha Vir Chakra or Vir Chakra or any such other gallantry award.

7. Share from a partnership firm:

As per Section 10(2A), for a partner in a partnership firm the share of his income from the total income of the firm is completely exempt from income tax. In simple words, you will not have to pay any tax on your share of profits from a partnership firm.
For this purpose, the partner and the firm are separately assessed and tax is levied on the income of the firm as a whole keeping the partner out of the purview of tax in respect of his share only. However, interest income, remuneration etc are taxable for partners as per the provisions of the Income Tax Law.

8. Receipts from Hindu Undivided Family:

As per Section 10(2) of the Income Tax Act, if you are a member of a Hindu Undivided Family (HUF) and receive or inherit any money then it is exempted from income tax. The provisions state that if any amount is received out of family income or out of impartible estate by the member of such HUF, then it is exempt from tax.
 9. Interest received from government notified bonds:

The government issues some specified bonds to raise money for infrastructure projects. As per section 10(15) of the Income Tax Act, the income that you earn from such bonds is exempt from tax. Further, unlike interest that you will receive on these bonds, the gains made by selling these bonds before maturity is taxable as capital gains.
10. Life insurance receipts on maturity:

If you receive any amount under a life insurance policy specified under section 10(10D) of the Act, then it is exempt from tax. However, the premium paid should not exceed the prescribed limits in respect of actual capital sum assured. The limit is as under:
For policies issued until March 2012, the premium can't exceed 20 per cent of the actual sum assured and for policies issued on or after April 1, 2012, the premium can't exceed 10 per cent of the actual sum assured. If the amount received during the financial year is more than Rs 1 lakh and the premium exceeds the above limits, then tax deducted at source (TDS) at the rate of 1 per cent will also be applicable.
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10 Things You Must Know Before You Invest In Public Provident Fund (PPF)

11:22
10 Things You Must Know Before You Invest In Public Provident Fund (PPF)


With a minimum deposit requirement of Rs 500 and a maximum of Rs 1.5 lakh, PPF or Public Provident Fund remains one of the most popular small savings schemes. PPF accounts have a maturity period of 15 years, which can be extended in blocks of five years. Partial withdrawals from PPF are allowed after the account completes a specified number of years. Also, a loan facility is available on PPF accounts. Currently, PPF accounts fetch an interest rate of 7.6 per cent per annum (compounded yearly). They are revised on a quarterly basis.

Here are 10 Things You Must Now Before You Invest In PPF:

1) Partial withdrawal from PPF accounts is permissible the seventh financial year from the year of opening account, according to India Post's website - indiapost.gov.in.
2) A depositor can make partial withdrawals, once every year from his or her PPF account.

3) Partial withdrawals from PPF accounts are also tax-free.

4) PPF deposits fall under the EEE (Exempt, Exempt, Exempt) tax category, which means an investor is not liable to pay tax at all three levels - investment, earning and withdrawal. All payments from PPF shall be exempt from tax under Section 10 (11) and partial withdrawals or premature closures are no exceptions.

5) Partial withdrawal is restricted to 50 per cent of the credit balance at the end of the fourth year immediately preceding the year of withdrawal or the year immediately preceding the year of withdrawal, whichever is lower.
6) In case the withdrawal is sought from a minor's account, the guardian has to make a declaration that the money is required for the use/benefit of the minor.
7) If PPF accounts are extended beyond maturity period of 15 years partial withdrawals are allowed once in a year. But the amount of withdrawal during a five-year block period should not exceed 60 per cent of the balance in the account at the commencement of the block period.
8) A PPF subscriber is allowed premature closure of his or her account or the account of a minor of whom he or she is the guardian only after the account has completed five years. It is allowed in special situations like if the amount is required for treatment of a serious ailment or higher education.

9) In other words, investors shall not be liable to pay any tax on the interest portion or the principal sum received on premature closure of the PPF account.
10) Loan facility from PPF accounts is available from the third financial year of opening the account, according to the India Post website. The loan can be taken up to 25 per cent of the amount in the account at the end of the second year immediately preceding the year in which the loan is applied for. The loan facility from PPF accounts are allowed till the end of fifth financial year from the end of the financial year in which initial subscription was made. Loans from PPF accounts can be taken only once a year.
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Online Shopping Tips and Tricks That Will Save You Money

07:04
Online Shopping Tips and Tricks That Will Save You Money


The internet is full of exciting deals and offers, from coupon codes to massive discounts, if you know where to look. Take a look at some of the tips and tricks that can save you cash.

Sign up to newsletters for exclusive deals

Online retailers are keen to get you on their mailing list, so many offer an incentive for signing up to their newsletters. At H&M for example you can get money off one item and free standard delivery on your next purchase. Even if a retailer doesn’t offer an incentive, newsletters are a good way to stay in the loop about sales, store events and other offers that could benefit you.

Add items to your shopping cart… and then leave


One savvy trick you could try when shopping online is to ditch your basket. This involves signing in to a website, adding items to your basket, but then leaving the site without making a purchase. Often retailers, keen for a sale, will send you an email offering you money off to come back and complete the transaction.

Haggle with retailers on live chat for discounts


More and more retailers now offer a live chat service with someone on hand to help you out when shopping online. So rather than dismissing the pop-up you could use it to haggle for a better deal on something you want to buy. The online helpers for retailers like Nike, Dell and Dyson have been known to offer discounts of 10% or more, just because people asked.

Hunt for voucher codes

As well as checking out whether you can earn cashback you should also check if you can score some money off with a voucher code. You can see the latest codes on websites like coupon.com.

Beat delivery charges

Delivery charges can be a real shock when you come to the online checkout for your shop. But there are ways to avoid this cost. Some retailers like Amazon offer the choice of picking up your order from a store or locker rather than getting it delivered to your home. Most offer this service for free or for a much smaller fee and it’s often more convenient as you don’t have to get someone to wait in for a delivery or run the chance of missing it.

See if your favorite retailers offer schemes to save you cash

If you shop regularly with a retailer, there may be a scheme that can offer you a way to save. For example, Amazon Prime offers unlimited fast delivery, plus access to streaming movies and other benefits.

Find the cheapest prices on price comparison sites


Price comparison sites, such as PriceGrabber or Froogle, are a great way of saving money, as they will analyze your searches across a number of difference retailers to find the best prices available.

Use social networking to be the first to know about sales

One of the best ways of saving money online is to get savvy with social media. “Like” your favorite retailers on Facebook, or follow them on Twitter. You’ll soon find that many merchants, such as Gap, post special coupons or announce sales first on their Facebook pages.

Search the product name to get a better deal

It may sound simple, but merely putting a product’s name into an internet search engine can save you hundreds. Why just settle for one product price when there is likely to be a huge amount of competition online? Just by searching for a show you want to see, you can save some big bucks on ticket prices. Never settle for what’s in front of you.

Avoid ticket booths – the internet will always have better offers


On that note, always look online before booking anything directly through a ticket office on the phone. Bus, train, theater, movie and flight tickets are likely to be noticeably cheaper online than they would be if you were to contact the merchant directly.

Join membership clubs for designer brand flash sales

A range of branded and designer goods run ‘membership clubs’, whereby you can register for free and get sent alerts for online flash sales. Doing this can get you discounts on some of the major designer brands such as Louis Vuitton and Chanel.

Subscribe to Amazon for discounts on your regular purchases

If you shop on Amazon regularly, it’s worthwhile subscribing. Not necessarily for Amazon Prime, but for the ‘subscribe’ feature, which automates the repurchasing process for you. Not only does it save time, but it also saves money by shaving a bit of cash off the original price for you.

Accumulate more coupons with multiple email addresses


You’ll often find that some retailers like to send single use coupons out to a select number of customers. To get the most out of these, sign up using multiple email addresses so you can receive the same coupon multiple times. It’s a bit sneaky, but well worth it if you can receive multiple 50% discount codes to use in your favorite store.

Always try to consolidate your purchases

This is one of the best ways to make sure you save online. Make sure you make a shopping list of the things you want to buy and use a search engine that will allow you to search for your entire list for the lowest total price.

Shop online from Wednesday through Friday

Wednesdays, Thursdays and Fridays are the most popular days for retailers to offer sales and discount codes, so try to do your browsing then. Avoid weekends though as you’ll find that’s when most people tend to do their shopping and so prices are most likely to be hiked.

Use the Amazon filler item finder to avoid shipping costs

Don’t want to pay the fees for Amazon Prime? All you need to do is try and spend $25 to get free shipping. You don’t want to spend for the sake of it though, so you can use the Amazon filler item finder to reach the fee without over-spending.

Use gift cards on your purchases for big savings

Using gift cards to buy things online can give you some pretty great savings. To make the most of it, fill up your cart online, then once you have a total, buy a gift card from the likes of Raise.com that amounts to your purchase. In many shops you can buy a gift card worth 5-15% more than its price.

Stack coupon codes

Don’t be afraid to stack coupon codes. Many online retailers including Macy’s and Kohl’s will allow you to stack up a bunch of different coupon codes at checkout so you can apply a number of different discounts to the same purchase.

Clear your browsing history and cookies to get a less biased price


When searching for coupon codes, or just online shopping generally, always remember to clear your browsing history and cookies, or use an in-private browser window. If a website can see you have already been looking at certain products (flights in particular), prices are likely to be increased.

Include your birthday when you sign up to retailers and get a birthday discount

Signing up to newsletters has lots of perks, but don’t forget to fill in your birthday when registering. Some companies, coffee shops and restaurants will offer you a discount on your birthday, or in some cases a free gift such as a free coffee when you go in store.

Buy out of season

It’s a classic hack, but buying out of season can save you a lot of money. When the demand for a certain product dips, so do the prices. For example, the price of swimwear during the peak of summer will always be at its most expensive; buy during the peak of winter instead for the best bargains.

Before you buy, check to see if you can get it for free

The joy of the internet is that anything is possible. And that means getting things for free too. Before you buy something, double check you can’t get the same or similar item for free. Sites like Freecycle will bring up second-hand goods that are available in your area and there are some serious bargains to be had.
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