G BAJPAI & ASSOCIATES

In the last few years, mutual funds have become one of the most sought-after investment options in India. Apart from residents, Indian mutual funds have also become popular among many NRIs. •NRIs can invest in Indian Mutual Funds. However, an NRI cannot invest with a regular savings account in a bank.  -NRIs cannot invest in foreign currency as well; they have to invest in Indian Rupees. •How to invest?  -For an NRI to make investments in mutual funds in India, the person needs to open an NRE (Non-Resident External) account or an NRO (Non-Resident Ordinary) account, or an FCNR (Foreign Currency Non-Resident) account. -Once the account is open, the person can start investing with any of the following two methods:  1. Directly through normal banking channels, or  2. Via Power of Attorney authorized to a resident Indian. •How to Redeem? -Different Asset Management Companies in India follow different procedures for the redemption of Mutual Funds by NRIs. You have to follow the process ment

What are Mutual Funds A Mutual Fund is a pool of money managed by a professional fund manager. It is a trust that collects money from a number of investors and invests the same in equities, bonds, and other securities. The income generated from this collective investment is distributed proportionately among the investors after the deduction of applicable expenses. Types of Mutual Funds Equity Funds- Equity funds are those mutual funds whose portfolio’s equity exposure exceeds 65%.  Debt Funds- Debt funds are those mutual funds whose portfolio’s debt exposure is in excess of 65%. Hybrid Funds- Hybrid mutual funds are types of mutual funds that invest in more than one asset class. Most often, they are a combination of Equity and Debt assets, and sometimes they also include Gold or even Real estate. Earnings from Mutual Funds Returns are in two forms: Dividends and Capital Gains. Dividends received by investors are added to their taxable income and taxed at their respective income tax sla

-ITR-U has been enabled for AY 2020-21 and AY 2021-22 for ITR 1 and ITR 4. The updated return u/s 139(8A) can be prepared using the Excel utility. -I TR-U is an updated return that can be filed under the following circumstances : Return not filed for AY 20-21 & 21-22 Income reported incorrectly Wrong heads of income chosen Reduction of carried forward loss Wrong rate of tax Reduction of unabsorbed depreciation - ITR-U cannot be filed if: If search/ survey/ prosecution proceedings are initiated against the taxpayers for the relevant AY. If the total tax liability is to be reduced Losses to be adjusted against the income There is a refund or increase in the refund amount -Additional liability: An additional 25% interest on the tax is due if the updated ITR is filed within 12 months. Interest up to 50% if it is filed after 12 months. -You can file only one updated return for each assessment year. Read more

ITR 1 - Resident individuals having total income up to ₹50 lakh. Having total income from salary/pension, one house property, other sources (interest etc) and agricultural income up to ₹5, 000 ITR 2 - Every income from ITR1, Capital Gains, More than one house property, Foreign Income/Foreign Asset, Holding directorship in a company ITR 3 - Every income from ITR2, Income from Business/Profession, Income as a partner in a firm, Presumptive income> 50 lakhs ITR 4 - Income up to 50 lakh, having presumptive income from business/profession ITR 5 - For Firms, LLPs, AOPs, BOIs ITR 6 - For companies other than those companies which claim exemption u/s 11 ( section 11 allows companies that hold their income from property for religious or charitable purposes to claim an exemption)  ITR 7 - Furnish return u/s 139(4A), 139(4B), 139(4C), 139(4D) Read more

From 1st July onwards, TDS at 10% shall be applicable on benefits received from the business by social media influencers and doctors.  Any person who provides any benefit or perquisite exceeding Rs 20,000 in a year to a resident arising from the business or profession of such resident shall make the payment after deducting tax at source. Benefits received can be in kind (like mobile, car, outfit, gold coins, etc), in cash, or partly in kind and partly in cash.  Exceptions: -Sales discounts, cash discounts, and rebates -If the product is returned to the company -If the benefit or perquisite is provided to a government entity not carrying on business or profession, like a government hospital, etc. The responsibility of tax deduction also does not apply to a person, being an Individual/Hindu undivided family (HUF) deductor, whose total sales / gross receipts / gross turnover from business does not exceed one crore rupees, or from profession does not exceed fifty lakh rupees, during the fi

• Investment in Equity Linked Savings Scheme can help you save up to Rs.46,800 a year in taxes. • ELSS funds are tax-saving equity mutual funds that invest a major portion of their corpus into equity or equity-linked securities such as listed shares. They may have some exposure to fixed-income securities as well. • The investment is eligible for deduction u/s 80-C up to 1.5 lakhs. • There is no limit on the maximum amount of investment, while the minimum investment can be as low as Rs.500 • The Mandatory lock-in period is 3 years • Income earned on maturity will be taxed under LTCG @10% (above Rs.1,00,000) • Factors To Consider Before Investing in ELSS Funds:  1. Fund returns : Before you go for a fund, compare the fund performance with its competitors & benchmark to know if it has shown consistent performance in the past. If a fund outperforms its benchmark or competitors, then the fund delivers high returns. 2. History of fund house : It is recommended to choose fund houses that