The Mutual Funds Investment Thread

[whitestar_999]

really? What returns if not eligible for any deductions? Damn this thing is so confusing

He was replying to @Vyom post mentioning showing some investments in ITR for getting deduction under old tax regime.

Don't you have to show investment anyway for returns?

There are certain "investments" which one could show without actually investing but now things are much more strict so only small amounts like 5k for heath checkup etc can be shown this way for claiming deductions, almost everything else require genuine investment proofs which can be cross verified by IT dept anytime.

 

[Nerevarine]

I recently got to know about presumptive taxation for businesses. How can a salaried individual utilize this ?

 

[whitestar_999]

I recently got to know about presumptive taxation for businesses. How can a salaried individual utilize this ?

Salaried individuals only need to consider advance tax, this presumptive taxation if for those doing business & filing itr3/4.

 

[Vyom]

I recently got to know about presumptive taxation for businesses. How can a salaried individual utilize this ?

If you are only salaried, presumptive taxation doesn't apply to you.
If you are also/only earning money through Freelancing, in some area which is in the list like Technical consulting/Accounting/Medical etc, then you can claim 50% amount as income and rest as expense, and only pay tax on 50% on them, and you don't need to keep book of accounting. It's under 44 ADA.

If I made you confused, read detail here: *cleartax.in/s/section-44ada

I used this to file my taxes under 44 ADA as I earned some money in freelancing through Upwork. It's a good section.

 

[whitestar_999]

If you are only salaried, presumptive taxation doesn't apply to you.
If you are also/only earning money through Freelancing, in some area which is in the list like Technical consulting/Accounting/Medical etc, then you can claim 50% amount as income and rest as expense, and only pay tax on 50% on them, and you don't need to keep book of accounting. It's under 44 ADA.

If I made you confused, read detail here: *cleartax.in/s/section-44ada

I used this to file my taxes under 44 ADA as I earned some money in freelancing through Upwork. It's a good section.

So you file ITR 4 by yourself?

 

[Vyom]

So you file ITR 4 by yourself?

ITR 3 actually. As my income is from: salary, trading and also business (that is freelancing).
I did file myself. It was a daunting task, but I did it nevertheless. Got to learn a lot about taxation. Had to do a LOT of research.

Edit:
ITR 1 is for those with only Salary income but some other income not including trading and business
ITR 2 is for those having Salary + Capital gains (Equity shares/MFs) but doesn't include intraday
ITR 3 is for those having Salary + Capital + Business/Professional/Freelancing + Intraday (44 ADA can be filled in this)
ITR 4 is for those having Salary + Business/Professional/Freelancing income (44 ADA can be filled also in this)

So basically ITR 3 is mix of ITR 1, ITR 2 and ITR 4

Also there are a lot of exceptions. For more details this video is great:

 

[TheSloth]

I recieved this in May from Groww.
Has anyone declared their income on Groww?
Is it REALLY mandatory?
Income means including salary or just income through MF/Trading on Groww?

 

[nac]

Income means, your total income i.e., all your incomes combined.

I wouldn't bother after reading the last two lines of the snapshot.

 

[whitestar_999]

Income means including salary or just income through MF/Trading on Groww?

Just fill the total income you file in your itr.

 

[whitestar_999]

ITR 3 actually. As my income is from: salary, trading and also business (that is freelancing).
I did file myself. It was a daunting task, but I did it nevertheless. Got to learn a lot about taxation. Had to do a LOT of research.

I see, I did a quick google search for 44ADA which showed it being available for ITR 4 so assumed the same.

 

[shreeux]

Instead on Money lying in SB account, for invest safely

Best Short term Fund min 3 month to 6months?
What about Liquid Fund?

Any suggestion? Welcome


@whitestar_999
@Vyom
@omega44-xt
@TheSloth
@Zangetsu

 

[whitestar_999]

Instead on Money lying in SB account, for invest safely

Best Short term Fund min 3 month to 6months?
What about Liquid Fund?

For such duration just use FD made under name of some family member with no taxable income (less than 7 lakh under new tax system) in some good small finance bank like Equitas having around 8% interest rate.

 

[Nerevarine]

unity sf bank gives 9% interest rate. go for it. (4.75 lakhs)

 

[whitestar_999]

unity sf bank gives 9% interest rate. go for it. (4.75 lakhs)

It is basically a revived version of the failed erstwhile PMC bank. Though it is entirely different bank now but its history makes it not such a good option when much better small finance banks like equitas, ujjivan, AU etc are there.

 

[Nerevarine]

It is basically a revived version of the failed erstwhile PMC bank. Though it is entirely different bank now but its history makes it not such a good option when much better small finance banks like equitas, ujjivan, AU etc are there.

thats good to know, i was going to make one but no more.

 

[TheSloth]

Instead on Money lying in SB account, for invest safely

Best Short term Fund min 3 month to 6months?
What about Liquid Fund?

Any suggestion? Welcome


@whitestar_999
@Vyom
@omega44-xt
@TheSloth
@Zangetsu

Not sure how safe are the liquid fund. I also had similar requirement and ended up doing FD and I renew it in case I do not need the money.

 

[RumbaMon19]

For a beginner, What mutual funds would you guys suggest?

Secondly, what is the process to invest in Chinese,HongKong and American Stocks?

 

[Desmond]

Get some Flexi-cap fund for starters. Start with a small SIP (I started with 1000 per month).

Check the MFs performance over long periods of time, there is usually a graph in the investment apps that indicates the performance. Prefer funds that perform well even in bad market situations.

You could look for low or medium risk funds for starters. The apps should indicate this as well.

 

[Cyberghost]

For a beginner, What mutual funds would you guys suggest?

Secondly, what is the process to invest in Chinese,HongKong and American Stocks?

Any NIFTY largemidcap 250 fund and nifty next 50 index fund. You can buy US stocks either through Vested,Stockal or Fi. For chinese stocks you need to opt for FoF option in MF

 

[thetechfreak]

Secondly, what is the process to invest in Chinese,HongKong and American Stocks?

There are ETF for those foreign indicies. But govt recently limited funds going abroad. Read more here :

1) *www.moneycontrol.com/news/business/personal-finance/mutual-funds-call-for-easing-rbis-limit-on-overseas-investments-amid-growing-opportunities-12507751.html

2) *timesofindia.indiatimes.com/business/india-business/stop-accepting-inflows-in-overseas-etfs-sebi-to-mfs/articleshow/108690639.cms