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Here are 10 things to about income tax benefits, interest rate, maturity and other features of National Savings Certificate (NSC) and 5-year tax-saving bank fixed deposit : moneywiseamc.com 5-year income tax saving bank fixed deposits (FDs) and NSC or National Savings Certificate are among the savings options that offer income tax benefits under Section 80C. Investment in 5-year tax-saving FDs and NSC up to Rs 1.5 lakh a year qualifies for tax deduction. The amount so invested is deducted from gross total income to arrive at taxable income. The interest rates on small savings schemes like NSC and PPF are reviewed every quarter. Both NSC and tax-saving FDs have a lock-in period of five years. Some banks like SBI offer income tax saving bank fixed deposits for up to 10 years. But the lock-in period is five years. 10 things to know about NSC and 5-year tax-saving bank fixed deposit (FDs): 1) Currently,  NSC fetches an interest rate of 7.6% , compounded annually. In other wo...

The capital gains tax on mutual fund returns depend on which type of fund it is – equity or debt. Similarly, the tax on dividend from mutual funds also depend on fund type. The assets under management of Indian mutual fund industry has crossed Rs 25 trillion mark. As on August 31, 2018, the asset base stood at Rs 25.2 trillion, according to data from AMFI or Association of Mutual Funds in India. The income tax rules on mutual fund gains and dividends depend on the type of fund — debt or equity — and the duration of investment. The growth in the Indian mutual fund industry is also being driven by SIP or systematic investment plan accounts through which investors invest regularly in fund schemes. The total amount collected through SIPs during August 2018 was Rs 7,658 crore and the number of SIP accounts stood at 2.38 crore. Mutual fund taxation rules – How gains or returns are taxed in 10 points: 1) If 65% or more of the corpus of a mutual fund scheme is invested in equities, ...

1. What are Non Convertible Debentures (NCDs)? Investors are forever on the lookout for improved and more sustainable schemes. The market  volatility  sometimes makes some plans overnight stars while at other times even traditional and trusted investments lose their sheen. Non Convertible Debenture or NCD is a scheme that proved to be a dark horse as they started delivering smaller but steady returns over time. Like traditional corporate FDs, NCD too is a fixed-income investment with a specific term and interest income. Companies issue them to raise funds, and evidently you cannot convert it to  equities . To make up for this limitation, investors enjoy supreme returns, liquidity, low risk and tax respite as opposed to convertible debentures. 2. Features of NCDs a. Issuance Companies provide NCDs through open issues, which the potential investors can buy within specific periods. There are options to buy NCDs from stock markets. b. Credit rating Only compan...