HOME | ABOUT US | MEDIA | ARCHIVES | CAREERS | SITE MAP | CONTACT US
		Welcome to brainpointinv.com ::

MUTUAL FUNDS INSURANCE OTHER PRODUCTS TAX CORNER NRI SERVICES DOWNLOAD FORMS

NEWS BY EMAIL Get the latest news from us. Sign-up for our news by email service.

Do You Still Hold NSS 1987 Interest Rate: 7.50% p.a. (w.e.f. 1/3/03)... It's not tax free! TDS: If you withdraw any amount from your account, 20% TDS will be deducted on principal & interest, both. If you don’t want TDS to be deducted, attach form 15H if withdrawal is above 1 Lac & form 15I if withdrawal is below 1 Lac. Tax Liability: Tax is not payable on the interest earned every year, but the amount that you withdraw (Principal + Interest) has to be added to your income of that year for computing tax. Normally what investors do: Most of the investors are not even aware about their NSS balances & the current interest rate on it. For over 15 years the money is just lying and investors are ignorant about the interest rate that has fallen from 11.5% to 7.5% now. There is no regular income facility nor have investors withdrawn from it for years. It’s like long term with low returns. Investment Ideas: • If you are above 65 years of age & your current annual income is for example Rs. 75,000/- (Income up to 2,25,000/- is exempt for Senior Citizens), you should withdraw, 1,50,000/- from NSS. Your income for this year will be considered 75,000 + 1,50,000 i.e. 2,25,000 and you have to pay - NIL Tax. The same 1,50,000 which was earning 7.50% can now be invested in several other options yielding much superior returns. • If your income (irrespective of age & gender) is above the exempted limits and if you are not satisfied with just 7.50% p.a. returns: Withdraw 1 Lac every year (if balance is more) & invest the same 1 Lac u/s 80C. So your taxable income does not increase and you have to pay NIL additional tax. Invest the same 1 Lac in NSC and earn 8% p.a. + 80C deduction with 6 years lock in. Or, invest up to 70,000 in PPF & earn 8% tax free returns. Or, invest in ELSS (Equity Linked Savings Schemes) of reputed Mutual Funds like DSP Taxsaver, Sundaram Taxsaver etc. for just 3 years and you can expect higher returns. Equity MF returns over 10 years irrespective of all adversities has been in the range of 25-30% CAGR. That’s where your long term money deserves to be invested in for wealth creation. To Summarise: Withdraw from NSS and invest in better opportunities like 9% Senior Citizen Savings Scheme, PPF, NSC, ELSS as per your need, tax status and investment horizon. So, make a smart move and make your money work smarter for you.

	For all your investment & insurance needs, please contact us at customerservices@brainpointinv.com
	Disclaimer | Privacy
	© 2008 Brain Point Investment Centre Pvt Ltd. All rights reserved. 648/649, Laxmi Plaza, SAB TV Lane, Off New Link Road, Andheri (W), Mumbai - 53.