Investment in Debt Funds can be made tax – free with added advantage of liquidity within twenty fours workings hours and better return s compared to Bank Fix ed Deposit ( FD). Debt Fund, for simplicity purpose, may be defined as “bunch of FDs”.
You may use such Debt funds like your savings bank a/c. and even start an SIP to get tax – free return after 3 – 4 years of holding period . Of course, there is no lock in period but if money is withdrawn before completion of three years , you may be liable to pay income tax. There is no TDS in case of such funds since income is treated as Capital Gains as per Income tax Act, 1961.
Many investors are investing in FDs in the name of spouse or father/mother to avoid taxation without understanding tax implications. Other honest and educated tax payers are paying Income tax on such FDs while filing Income tax Return. Only a few investors in India invest in Debt Funds and enjoy tax free returns!! Just, check are you one of them?
With the help of technology, you can invest your “idle” money even for 24 workings hours!! Many Mutual Funds houses have started phone call confirmation facility so that you can invest without actually handing over cheques and forms and without visiting our office . Certain mutual funds offer the facility of sending emails to confirm the transaction initiated by us. Your bank a/c. will be debited only when you approve the mail. You will get Account Statement from mutual fund house once the transaction is completed. Even SMS will be sent by bank and such houses. Of course, all these transactions will be reflected in our monthly report too . So just don’t let your money be idle and allow to work for you.
Pl. notes that I am sending this write up to all my clients across the globe using mass media communication technology. Incase these comments are not applicable/acceptable, you may please ignore the same.
