Tax planning 2013

TAX PLANNING

Taurus Capital Advisors January, 2013

Tax Planning

•  Tax planning is an integral element of personal finance

•  Key Sections

–  80C – Invest up to Rs. 1 Lac for deductions

–  80D – Deduction up to Rs. 15,000 for self & family, and additional Rs. 20,000 for parents (senior citizens)

–  80CCD – Deduction of up to 10% of gross income invested under New Pension Scheme

–  80CCD (2) – Further deduction of up to 10% of gross income, against contribution made by employer under New Pension Scheme

© Taurus Capital Advisors For private circulation only

Tax Saving Options

Provident Fund

NSC

Insurance

ELSS

Tax Saving FDs

Investing in PPF or NSC to claim tax-break could yield moderate returns, whereas Mutual Funds could mean adding slight risk, but can make your money earn higher returns

Return – 8-9%

Returns – 8%

ULIP Returns – Market linked

Returns – Market linked ~ 6-20%

Returns – 8-9%

•  No tax on maturity •  Tenure to be 15 years •  Limit increased from 70,000 to 1 Lac, but interest has

been market linked

•  Term – 6 Years •  Taxable on maturity

•  Term Insurance – best to cover life •  Health Insurance – Limit up to 15,000 •  ULIPs – Lockin revised to 5 years

•  Investment into equity related tax saving funds •  Lock-in period of 3 years

•  Term – 5 Years •  Interest Taxable


Our suggested approach

•  Evaluate your existing contribution to Provident Fund (most important for salaried people contributing towards EPF)

•  Evaluate your Home Loan EMI (Principal & Interest payments)

•  Term Insurance – should be your first priority

•  Health Insurance – have moderate medical insurance

•  ELSS or PPF – allocate balance depending on the age and participation in equity investments


Invest in ELSS!!


ELSS Performance 3 Year Performance 5 Year Performance

10 Year Performance


ELSS Performance

19.54%

8.13%

2.80%

8.68%

24.20%

28.09%

13.95%

7.65%

12.69%

32.59%

1 Year 3 Year 5 Year 7 Year 10 Year

Category Top Performer

Annualised returns


Equity Outlook

•  Indian equity markets have given 24% return in 2012

•  Key positive factors for year ahead

–  Continued strength in domestic consumption demand

–  Direct transfer of subsidies

–  Revival of investment spending cycle led by public sector enterprises

–  Corporate earnings growth in coming quarters

Equity outlook is positive for a 3 to 5 years of investment horizon, and can give best returns for wealth creation


Taurus Capital Advisors

Our Profile

Taurus Capital Advisors

•  Taurus Capital Advisors is a financial services firm providing Independent Investment Banking and Wealth Management advice

•  We are an independent and client centric private wealth management firm

•  Our Wealth Management business serves the investment interests and wealth management needs of families and high-net-worth individual investors

•  We offer breed of investment solutions from product providers in equity, fixed income and alternate investment classes

•  Our philosophy is that each client requires a financial portfolio to match their varied risk appetite and it takes an expert understanding of the financial markets to design a portfolio that achieves the clients’ desired goals.

Investing is all about discipline

•  We follow a detailed and disciplined process to create and fine-tune your portfolio. Specific steps we can take include:

–  Review your existing holdings and evaluate special circumstances, such as concentrated stock positions, mismatched asset allocation etc.

–  Establish target asset allocation ranges for your portfolio, which allow for market fluctuations before rebalancing occurs, in order to maximize efficiency

–  Carefully select investments from investment offerings in a full array of asset classes

–  Implement your investment plan, managing transitions and analyzing tax implications effectively

THANK YOU

For further details & investing Please contact

Taurus Capital Advisors +91-98290-07926

[email protected]

Economy & Finance

Tax planning 2013