ÿþ<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> <html xmlns="http://www.w3.org/1999/xhtml"> <head> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1" /> <meta name="description" content="Brain Point, founded in 1996, is Mumbai's leading investment consultancy specializing in equity mutual fund portfolio management." /> <meta name="keywords" content="brain point, financial consultant, financial advisor, financial planner, investment consultant, investment advisor, portfolio management, insurance, mutual funds, investment, tax, wealth management, mumbai, india" /> <title>Brain Point - Mumbai's leading Financial Advisors</title> <link rel="stylesheet" href="../../../css/style.css" type="text/css" /> <script language="JavaScript" type="text/javascript" src="../../../js/random_quote.js"></script> </head> <body bgcolor="#64748B"> <!-- Header section --> <table align="center" border="0" cellspacing="0" cellpadding="0" width="760"> <tr bgcolor="#FFFFFF"> <td width="180" height="60" rowspan="2" nowrap="nowrap"> <a href="../../../index.htm"> <img src="../../../images/logo.jpg" alt="Welcome to Brain Point Investment Centre" border="0" width="150" height="32" hspace="15" align="absmiddle"/> </a> </td> <td width="580" colspan="3" align="right" valign="top" nowrap="nowrap" id="headerMenu"> <a href="../../../index.htm">HOME</a> | <a href="../../../about_us.htm">ABOUT US</a> | <a href="../../../media.htm">MEDIA</a> | <a href="../../../archives.htm">ARCHIVES</a> | <a href="../../../careers.htm">CAREERS</a> | <a href="../../../site_map.htm">SITE MAP</a> | <a href="../../../contact_us.htm">CONTACT US</a> &nbsp; </td> </tr> <tr bgcolor="#FFFFFF"> <td nowrap="nowrap" align="right" valign="top" id="headerMenu" width="130">&nbsp;</td> <td nowrap="nowrap" align="right" valign="bottom" id="headerMenu" width="435"> <a href="../../../index.htm"> <marquee> Welcome to brainpointinv.com :: <script language="JavaScript" type="text/javascript"> document.write(random_quote); </script> </marquee> </a> </td> <td nowrap="nowrap" align="right" valign="top" id="headerMenu" width="15">&nbsp;</td> </tr> </table> <!-- Navigation section --> <table align="center" border="0" cellspacing="0" cellpadding="0" width="760"> <tr bgcolor="#FF6600"> <td><img src="../../../images/space.gif" alt="" width="1" height="4" border="0" /></td> </tr> <tr bgcolor="#D3DCE6"> <td><img src="../../../images/space.gif" alt="" width="1" height="1" border="0" /></td> </tr> <tr bgcolor="#FFCC00"> <td height="24"> <table border="0" cellpadding="0" cellspacing="0" id="navigation"> <tr> <td class="navText" align="center" nowrap="nowrap"> <a href="../../../mutual_funds/index.htm">MUTUAL FUNDS</a> </td> <td class="navText" align="center" nowrap="nowrap"> <a href="../../../insurance/index.htm">INSURANCE</a> </td> <td class="navText" align="center" nowrap="nowrap"> <a href="../../../other_products/index.htm">OTHER PRODUCTS</a> </td> <td class="navText" align="center" nowrap="nowrap"> <a href="../../../tax_corner/index.htm">TAX CORNER</a> </td> <td class="navText" align="center" nowrap="nowrap"> <a href="../../../nri_services/index.htm">NRI SERVICES</a> </td> </tr> </table> </td> </tr> <tr bgcolor="#D3DCE6"> <td><img src="../../../images/space.gif" alt="" width="1" height="1" border="0" /></td> </tr> <tr bgcolor="#FF6600"> <td><img src="../../../images/space.gif" alt="" width="1" height="4" border="0" /></td> </tr> </table> <!-- Main body --> <table align="center" border="0" cellspacing="0" cellpadding="0" width="760"> <tr> <!-- The left band --> <td width="180" valign="top" bgcolor="#26354A"> </td> <!-- Left side of editable section --> <td width="15" bgcolor="#FFFFFF" valign="top"> <img src="../../../images/space.gif" alt="" width="15" height="480" border="0" /> </td> <!-- Main editable section --> <td width="550" bgcolor="#FFFFFF" valign="top" id="padding"> &nbsp;<br /> <span class="pageName">Do You Still Hold NSS 1987</span><br /> <br /> <b>Interest Rate:</b> 7.50% p.a. (w.e.f. 1/3/03)... It's not tax free!<br /> <br /> <b>TDS:</b> 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.<br /> <br /> <b>Tax Liability:</b> 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.<br /> <br /> <b>Normally what investors do:</b> 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.<br /> <br /> <b>Investment Ideas:</b><br /> <table width="100%" border="0" cellpadding="0" cellspacing="0"> <tr> <td class="class" valign="top">&bull;</td> <td><em>If you are above 65 years of age &amp; 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.<br /> 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.</em></td> </tr> <tr> <td width="5%">&bull;</td> <td width="95%"><em>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:<br /> Withdraw 1 Lac every year (if balance is more) &amp; invest the same 1 Lac u/s 80C. So your taxable income does not increase and you have to pay NIL additional tax.<br /> Invest the same 1 Lac in NSC and earn 8% p.a. + 80C deduction with 6 years lock in.<br /> Or, invest up to 70,000 in PPF &amp; earn 8% tax free returns.<br /> Or, invest in ELSS (Equity Linked Savings Schemes) of reputed Mutual Funds like DSP Taxsaver, <br /> 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&rsquo;s where your long term money deserves to be invested in for wealth creation.</em></td> </tr> </table> <br /> <b>To Summarise:</b> 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.<br /> <br /> <b>So, make a smart move and make your money work smarter for you.</b><br /> <br /> </td> <!-- Right side of editable section --> <td width="15" bgcolor="#FFFFFF" valign="top"> <img src="../../../images/space.gif" alt="" width="15" height="480" border="0" /> </td> </tr> </table> <!-- Copyright section --> <div style="width:100%;text-align:center"> <div style="text-align:center;background-color:#cccccc;width:760px;text-size:10px;"> <br /> <span style="font-size: 11px;font-family: Arial, Helvetica, sans-serif"> For all your investment &amp; insurance needs, please contact us at <a href="mailto:customerservices@brainpointinv.com"> customerservices@brainpointinv.com</a><br /><br /> </span> <span id="footerMenu"> <a href="../../../disclaimer.htm">Disclaimer</a> | <a href="../../../privacy.htm">Privacy</a> </span><br /> <span style="font-size: 11px;font-family: Arial, Helvetica, sans-serif">&copy; 2008 Brain Point Investment Centre Pvt Ltd. All rights reserved.<br /> 648/649, Laxmi Plaza, SAB TV Lane, Off New Link Road, Andheri (W), Mumbai - 53. </span><br /><br /> </div> </div> </body> </html>