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Tax-Saving Strategies

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6 Answers
29 Questions
Home/Tax-Saving Strategies
  1. Asked: November 2, 2024

    How do you manage fear and greed in trading?

    Kiran123
    Kiran123 Beginner

    Manage Fear and Greed in Trading Fear and greed are powerful emotions that can fail your trading strategy. To manage them effectively:  * Develop a solid trading plan: Set clear entry and exit points, risk management rules, and position sizing.  * Practice discipline and patience: Stick to your planRead more

    Manage Fear and Greed in Trading

    Fear and greed are powerful emotions that can fail your trading strategy. To manage them effectively:

     * Develop a solid trading plan: Set clear entry and exit points, risk management rules, and position sizing.

     * Practice discipline and patience: Stick to your plan, avoid impulsive decisions, and wait for the right opportunities.

     * Cultivate mindfulness and emotional awareness: Recognize triggers, practice mindfulness techniques, and maintain a trading journal.

     * Improve a positive mindset: Focus on the process, learn from mistakes, and celebrate successes.

     * Seek continuous learning and improvement: Stay updated, learn from experienced traders, and practice regularly.

    By implementing these strategies, you can tame your emotions and increase your chances of long-term success.

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  2. Asked: November 1, 2024

    How is inheritance taxed on property and investments in India?

    Viha K
    Viha K Explainer

    Here’s a simple guide to inheritance tax in India: No Inheritance Tax in India: Currently, India does not have an inheritance tax. This means you won’t pay any tax to the government just for inheriting property or investments. However, there are some taxes to consider in the future: Capital Gains TaRead more

    Here’s a simple guide to inheritance tax in India:

    No Inheritance Tax in India: Currently, India does not have an inheritance tax. This means you won’t pay any tax to the government just for inheriting property or investments.

    However, there are some taxes to consider in the future:

    1. Capital Gains Tax: If you sell inherited property or investments, you may have to pay capital gains tax on any profit from the sale.
    2. Income Tax on Rental Income: If the inherited property earns rental income, you’ll need to pay income tax on that rental income.
    3. Other Taxes: Additional taxes, like stamp duty or property tax, may apply depending on the inherited assets and any transactions you make with them.

    Key Points to Remember:

    • No Inheritance Tax: There’s no tax on simply inheriting assets.
    • Future Taxes May Apply: Be aware of taxes if you sell or earn income from inherited assets.
    • Seek Professional Advice: A tax advisor can give you personalized guidance for managing taxes on your inheritance.

    By knowing these basics, you can better plan for your financial future and make informed choices about your inherited assets.

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  3. Asked: November 1, 2024

    How much tax do I pay on dividends from stocks in India?

    Viha K
    Viha K Explainer

    Here’s a simple guide to understanding dividend taxation in India: No More Dividend Distribution Tax (DDT): Earlier, companies paid a tax (DDT) on the dividends they distributed. Now, this tax has been removed. Tax on Dividend Income: Now, the tax on dividends is paid by the person receiving it. ThiRead more

    Here’s a simple guide to understanding dividend taxation in India:

    1. No More Dividend Distribution Tax (DDT): Earlier, companies paid a tax (DDT) on the dividends they distributed. Now, this tax has been removed.
    2. Tax on Dividend Income: Now, the tax on dividends is paid by the person receiving it. This means your dividend income is added to your total income and taxed according to your regular income tax rate.
    3. Tax Deducted at Source (TDS):
      • TDS Threshold: If you receive more than ₹5,000 in dividends in a financial year from a company, a 10% TDS will be applied.
      • TDS Exemption: If your total income is below the taxable limit, you can claim a full refund of this TDS.

    Key Points:

    • No Fixed Tax Rate for Dividends: Dividends are taxed at your regular income tax rate.
    • TDS Consideration: Remember the ₹5,000 TDS threshold and claim a refund if eligible.

    Consult a Tax Expert: For tailored tax advice, it’s best to speak with a tax professional. They can help you understand your specific tax situation and assist with filing.

    By knowing these basics, you can better plan your investments and manage your taxes.

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  4. Asked: November 1, 2024

    What are the tax benefits of investing in senior citizen schemes?

    vijay123
    Best Answer
    vijay123 Teacher
    How do you manage fear and greed in trading?

    Senior citizen schemes offer a secure way to grow your savings while providing tax advantages. Here's what you need to know: Reduced Taxable Income: Many senior citizen schemes allow you to claim deductions under Section 80C of the Income Tax Act. This reduces your overall taxable income, potentiallRead more

    Senior citizen schemes offer a secure way to grow your savings while providing tax advantages. Here’s what you need to know:

    Reduced Taxable Income: Many senior citizen schemes allow you to claim deductions under Section 80C of the Income Tax Act. This reduces your overall taxable income, potentially lowering your tax liability.

    Key Points on Tax Benefits:

    • Investment Deduction: Popular schemes like the Senior Citizen Savings Scheme (SCSS) allow deductions up to ₹1.5 lakh on the invested amount.
    • Interest Taxation: The interest earned on these schemes is taxable as per your tax slab. However, some schemes offer tax-free interest up to a certain limit.
    • TDS on Interest: If your total interest income from all senior citizen schemes exceeds ₹50,000 in a financial year, a Tax Deducted at Source (TDS) might be applied.

    Benefits Beyond Taxes:

    Investing Dhan understands that security and steady returns are crucial for senior citizens. These schemes often offer:

    • High Interest Rates: Senior citizen schemes typically offer higher interest rates than regular savings accounts.
    • Government Backing: Many schemes are backed by the government, providing security and peace of mind.
    • Flexible Options: Choose schemes with different tenures and withdrawal options to suit your needs.

    Explore Senior Citizen Schemes on Investing Dhan:

    Investing Dhan provides information and resources on various senior citizen schemes. Explore options like SCSS, Tax-Saving FDs, and Senior Citizen Pension Schemes. Make informed decisions and leverage the tax benefits to secure your financial future.

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  5. Asked: November 1, 2024

    Can I save tax by investing in NPS (National Pension System)?

    Anonymous
    Best Answer
    Anonymous

    Yes, investing in the National Pension System (NPS) can help you save on taxes. The NPS is a government-backed retirement savings scheme designed to provide long-term financial security. By contributing to the NPS, investors can benefit from significant tax deductions under various sections of the IRead more

    Yes, investing in the National Pension System (NPS) can help you save on taxes. The NPS is a government-backed retirement savings scheme designed to provide long-term financial security. By contributing to the NPS, investors can benefit from significant tax deductions under various sections of the Income Tax Act, making it an attractive choice for tax-saving investments in India.

    Tax Benefits of NPS:

    1. Tax Deduction Under Section 80CCD(1):
      • Investments in NPS are eligible for a deduction of up to ₹1.5 lakh per financial year under Section 80C and 80CCD(1).
      • Salaried individuals can claim a deduction of up to 10% of their salary (basic + DA), while self-employed individuals can claim up to 20% of their gross income.
    2. Additional Deduction Under Section 80CCD(1B):
      • Beyond the Section 80C limit, investors can claim an additional deduction of up to ₹50,000 under Section 80CCD(1B).
      • This extra deduction is available exclusively for NPS contributions, providing further tax savings and encouraging long-term retirement planning.
    3. Employer Contribution Under Section 80CCD(2):
      • If your employer contributes to your NPS account, you can claim a deduction under Section 80CCD(2).
      • This benefit is over and above the ₹1.5 lakh limit under Section 80C and is not subject to any upper limit.
    4. Partial Withdrawal and Maturity Benefits:
      • After 60 years of age, 60% of the NPS corpus can be withdrawn tax-free, while 40% must be used to purchase an annuity, which is taxable as per the applicable income tax rates.

    Why NPS is a Good Tax-Saving Investment:

    Investing in NPS not only helps you save on taxes each year but also supports a disciplined approach to retirement savings with market-linked returns. The scheme provides a balanced portfolio with options in equities, corporate bonds, and government securities, helping investors build a strong retirement corpus.

    By choosing NPS as a part of your tax-saving investments, you can maximize your tax deductions and ensure a secure retirement.

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