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Indian Stock Market News and Views.

What is section 80C ? Saving Tax with 80C

| Filed under News and Views

 

tax What is section 80C ? Saving Tax with 80C

 

 

 

 

When its March and you go on a ride for getting the most benefits of tax deductions. If you plan well then you can surely save some good amount of money with your tax plans. One of the most common option that we Indians use for Tax deduction instruments is Section 80C of the Income Tax Act. Some of you might have heard about it and others would certainly know what they are too. (One of the most popular contributions/investments are the EPF (Employee Provident Fund) and PPF (Public Provident Fund). There are some other investments options too which work under this. 

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Equity Linked Savings Scheme (ELSS)

| Filed under Stocks

 

future investment value 2 278x300 Equity Linked Savings Scheme (ELSS)

 

 

 

 

Its a variety of diversified equity fund. You can make your investment tax deductible under Section 80C of the Income Tax Act.  The ELSS fund has a locking period of three years, its equipped with all other normal abilities of a equity fund. The investor also has the option to choose between growth and dividend options, and systematic investment plans (SIP). The dividends earned in this scheme ELSS are tax free. The returns at the maturity period is also tax free. The limit under Section 80C is for 1 lakh. The present situation is bad with ELSS too, since the stock market were beaten down negatively following the economic crisis. 

The returns with the ELSS before the fall of the markets was greater than any other tax saving option. ELSS is the best option for investors who are looking with a time frame of 3-5 years. The short term weakness in the market will glide down and will earn the investor with better returns in the long run. The performance and the ability of the stocks in the long run can never be beaten with any other financial instruments. The ELSS beats mostly all the equity based mutual fund schemes. It has a mandatory lock in period of three years. The minimum investment that can be made on ELSS is Rs.500 and multiples of it. The fund should be allotted to the investors to those who have applied with the prescribed form before March 31 every year. The plan would be open for a minimum period of three months. From the date of allotment the fund should be hold for three years. On the completion of the three years the investor gets the option to tender the units for repurchase. 

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What is Micro Finance

| Filed under Economy

 

2229763779 872f8f6f2d m What is Micro Finance

In India Micro finance seems to be the buzz in the streets of the Mutual fund industry. The industry is not grown like what is found to be in the other developed countries. Keeping in mind with the vast untapped market of India Mutual fund companies are getting with new plans which would range from Rs.10 to 300 per day. The target of the micro finance is for the rural and semi urban area households with low income. To tap the market major fund houses like UTIMF and SBIMF have been associated with many NGO’s and other micro credit institutions locally. The first one to get into the micro financing market was Bharati AXA with their Bharati AXA Equity Fund by the last of September which was with a minimum investment of Rs.300.  

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