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 The golden secret of earning from saving is not just how much you invest, but also how long you invest! 


  • Managing your money requires more skill than making it.
  • Savings will not make you rich, only smart investments will. 
  • Plan your play and play your plan. Let it not be a ship without a rudder, floating where the tide takes it.

While Manan Patel a conscious investor started timely savings of Rs. 10,000 per month in a Systematic Investment Plan (SIP), his friend Chintan Shah was too preoccupied with his business to find time for planning his investments. Manan’s SIP has a track record of offering a 15% annualized return and thus he has calculated that he would become a ‘Crorepati’ reaping Rs.1.1 crores after 18 years of regular savings. Chintan wakes up 4 years late and also wants to catch up with his friend. However, he is just unable to believe how much his delayed decision is going to cost him when he is told that to earn the same target amount of Rs.1.1 crores in the remaining 14 years, he would be required to invest double the savings amount i.e. Rs. 20,000 per month. 



You can enjoy a maximum take home pay by including these tax free allowances & perks in your annual pay package!

The Income-tax Act provides for a number of allowances and perquisites which have been notified as tax free and every salaried taxpayer must endeavour to negotiate his pay package in a manner that the same can include such tax free allowances and perquisites. This would ensure that he is able to take maximum take-home pay per month with the minimum deduction of tax. 

Some of the important tax free allowances and perquisites are listed here under: 



Every taxpayer is entitled to receive refund within one year from the end of the financial year in which his return is filed!

      As per Section 244A of the Income-tax Act, a taxpayer is entitled to interest @ 0.5% for every month or part of the month, (6% per annum) from the first day of April of the assessment year to the date on which the refund is granted, where the refund arises on account of TDS or advance-tax payment. It needs to be borne in mind that as per the proviso to Section 244A, no interest is payable if the amount of refund is less than 10% of the tax payable by the taxpayer.



Holds continuing education and training programmes of Ahmedabad Management Association entitled to exemption!

Should the term ‘education,’ in the context of the definition of ‘charitable purpose’ under Section 2(15) of the Income-tax Act, be given such a narrow and restricted meaning, so as to include only formal school or college education? Can a public charitable trust pursuing the objects of continuing education, training and research on various facets of management and related areas be denied the benefit of exemption under Section 11 of the Income-tax Act, on the ground that its activities do not fall within the scope of education?

            These two very interesting and important questions recently came up for consideration before the Income-tax Appellate Tribunal (ITAT), Ahmedabad, in the case of Ahmedabad Management Association (AMA). 



Public Provident Fund (PPF) is a hot favourite amongst tax saving investments with an effective return upto 18.22%!

PPF enjoys the pride position of being a wonderfully attractive investment scheme offering total safety, a high degree of flexibility, reasonable tax free return and useful tax saving through the shelter of income-tax rebate. Let us take a bird’s eye view of these special attractive features of PPF:

 Total Safety: Enjoying highest security in terms of investment, PPF is perhaps the only asset which is free from any civil claim or attachment, even by a Court of Law. No wonder, there are people who have practically lost everything in the debt claims against them, except their investment in PPF!

 High Flexibility: Although the maturity period of investment in PPF is 15 years from the opening of the Account, the minimum annual investment required is only Rs.500 per annum, giving the investor freedom to invest as per his choice and available resources.  The maximum limit of investment is Rs.1,00,000 per annum.  The other attractive feature of PPF is that even after 15 years, the account can be renewed for a fresh term every 5 years.  This facility of extending the 5 year block period from 15 to 20 to 25 to 30 years and so on can be availed continuously as per the choice of the investor.  The privilege of one annual withdrawal from PPF after the initial 6 years period and even during the extended block period after 15 years as available to the investor can come extremely handy in times of need.


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