Now taxpayers are in a hurry to make tax saving investments before 31March,2015, here are few ways through which you can save tax even at last minute:

1. INVEST IN TAX SAVER DEPOSITS: You can invest in tax saver FD (Fixed Deposits). It is the simplest and most popular way of saving tax. Most of the banks now allow customers to open a tax-saver FD online, but don’t allow online facility for other FDs. You can get its exemption upto Rs1.5lakhs under Section 80C. Interest earned under tax-saver FD is taxable.

2. BUY HEALTH INSURANCE ONLINE: Many companies facilitate purchase of health insurance policies online. The insurance-seekers below the age of 45 without any adverse health history do not need to go through medical tests and hence they can take health policies online. But those over the age of 45 will have to wait till policy is issued post medical tests. You can get its deduction upto Rs15,000 under Section80D and for senior citizens its deduction upto Rs 20,000.

3. BUY ONLINE TERM POLICIES: Online term plans are cheaper than physical term products. Within an hour one can purchase the online term plan. As you are taking term plan online so there is no need to pay commission to the agent. The process is completed with payment of premium, unless you have to undergo medical tests. The premium receipt can be used to claim tax deductions. You can claim its exemption up to Rs 1.5lakhs under Section 80C. The amount received on maturity is also exempt from tax.

4. INVEST IN ELSS: ELSS stands for Equity Linked Savings Scheme. This scheme does not require recurring payments. You can discontinue the payment in subsequent years if you realize the fund does not suit your needs. If you are KYC compliant then you can easily invest online. You have to got to the website that track mutual funds and identify the fund with the help of ratings. Then register on the site and click on the invest online link. Choose the scheme you have identified and choose its direct version and pay. The acknowledgement you receive will serve as proof for claiming Income tax exemption. The exemption is available up to Rs 1.5lakhs under Section 80C. The amount received on maturity of ELSS is also exempt from tax.

5. GO FOR PPF : PPF is Public Provident Fund in which anyone can invest. It has low risk. Some banks provide facilities of opening online PPF account but the application and KYC proof is to be submitted in the branch. You can also transfer funds online through your linked savings bank account.



One must file his income tax return and that too on or before last date. I have mentioned some consequences of not filing income tax return before last date. You must file tax returns as they may help you in getting loan from bank or financial institution.

If you are efiling your Income Tax Return then you must take care of the following things:

-> Fill your bank details very carefully as from this year onwards Income Tax Department has discontinued to pay refund through cheques. So to get your refund on time, fill your details with caution.

-> You must be clear about the concept of Financial Year and Assessment Year. Financial year is one for whose income you are filing the return and Assessment year is one in which you are filing return. For example; for this year’s return Financial year will be 2013-14 and Assessment year will be 2014-15.

-> Tax is payable on Total income. Total income includes aggregate of all the income under various Heads of Income,i.e., Salary or pension, House Property, Business or Profession, Capital gains and Other Sources. This income must be reduced by deductions available to get Total Income.

-> Some people fail to send ITR-V,i.e., Acknowledegement within 120 days of filing. If you fail to do so then your return may be rejected.

-> Be careful while filling your personal details like PAN , Address, Mobile number, email id, etc. The number and mail id you will provide will be used for further communication by the Income Tax Department.

-> From this year onward, it is mandatory to update your contact details before filing the income tax return.

These are the few things that must be taken into consideration while efiling the income tax return.

Economic Indicators That Affect your Financial Plan

Economic indicator is a statistical data showing general trends in the economy. Most of us don’t know that these economic indicators affect our financial plan. Some economic indicators and their effect are being discussed hereunder:

1. Gross Domestic Product: The Indian economy is crawling with a growth rate under 5%. The Indian economy is expected to continue to be sluggish. Slower growth dents job prospects, forcing many to rein-in their aspirations and reset the timeline of their financial goals.

2. Inflation: Inflation is the rate of growth in prices. Price rise has been one of the chief causes of governments being voted out of power in the past, it would be safe to assume that even laypersons are aware of how inflation affects their consumption spends. Due to inflation your financial plan needs a review and needs to be altered. You should follow consumer price index (CPI) and food inflation instead of wholesale price index (WPI). These indexes tell you about inflation and help you in making appropriate alteration to your financial plan.

3. RBI’s Monetary Policy: The Reserve Bank of India, through its policy measures, influences the interest rate movements in the market using several tools like repo and reverse repo rate. Any action in this concern impacts interest rates in the system, which in turn affects your home loan or fixed deposit rates. So, it is important to understand the implications of changes in policy rates. This helps you understand at what rates RBI is willing to lend and borrow from banks. It helps you know if banks will provide cheaper loans going ahead or will they become more expensive.

4. Exchange Rate: A diminishing rupee adds to the expenses of travelling abroad, especially in US- be it leisure, business or studies. It adversely impacts corporate earnings, barring export-dependent sectors like IT. For individuals, impact can be seen in the form of rise in inflation.

5. Stock Market Indices: An indicator of the economic situation and the level of business confidence in the country, any rise or fall in Nifty or Sensex are directly reflected in your equity investments on a daily basis. They give sense of where the economy is headed. These indices are keenly watched by investment professionals, as they tend to be the barometers of economic conditions in the industry and the economy as well.

You should consider these economic indicators also while reviewing or preparing your financial plan.


First of all we must know what is FORM 16. It is the certificate of TDS issued by the employer. It is mandatory for the employer to issue Form 16 if TDS is deducted otherwise it is not mandatory on the part of employer.

Form 16 contains two parts, i.e., Part A and Part B. Part A contains the details of TAN, PAN and TDS deducted. Part B contains your salary details like Income from salary, deductions, etc.

Form 16 is required for filing income tax return but it is not mandatory as TDS details can also be obtained through Credit Statement Form 26AS. You can file your income tax return with the help of Form 26AS also. File your income tax as it is your responsibility.

If your employer has deducted Tax and still not issuing the Form 16 then you can contact your Assessing Officer. He will take appropriate action against him and he can be penalised Rs 100 per day for the days default continues.

For efiling the income tax return you can go to following link

For hassle free filing of income tax return you can also contact or can call 9818879049.


Here are the few deductions which are lessor known to common persons:

This is the deduction related to Rent paid. If your employer is not giving your HRA (House Rent Allowance) then also you can claim deduction for rent paid. You can claim deduction maximum of Rs. 2,000 per month.

This section belongs to interest on loan taken for higher education and vocational courses. You can also claim any interest paid on loan taken for higher education of spouse, children or student for whom you are guardian.

Interest paid on second home loan is also fully deductible. If you buy second house through another home loan & gives it on rent, entire interest is deductible but rent income will be taxable.

4) SECTION 80D (Medical insurance of parents)
Normally everyone knows that Section 80D deals with medical insurance and its limit is Rs 15,000 but you can also claim deduction of additional Rs 15,000 for medical insurance of your parents. And if any one of them is Senior Citizen then this additional limit will go up to Rs 20,000.

This section deals with donations. If you are donating to specified funds then you can claim its deduction also. Some funds give you deduction of 100% of amount donated and some 50% of amount donated. So clarify it for claiming deduction.

You can avail benefit of this section for two assessment years,i.e., 2014-16 only. This section provides deduction to first time home buyers. It provides deduction of interest on home loan upto Rs 100000. But you should be first time buyer of house property, value of house should not be more than Rs 40 lakhs, amount of loan should not be more than Rs 25 lakhs and for this purpose loan should have been taken between 01.04.13 to 31.03.14. You can avail this benefit in two years, i.e., if you are unable to avail the benefit in one assessment year then you can carry forward the balance to next year.

This account deals with interest on savings account. Earlier the interest earned from savings account were taxable under normal slab but now interest upto Rs 10000 is allowed as deduction. For claiming this deduction you have to first include it in your income then you can claim its deduction under Chapter VI-A.

Very few people know that they can claim deduction of interest paid on loan taken for repairs and maintenance of house property also.

If you have taken home loan and are living in rented house then you can claim following deductions:

-> Principal repayment of Home loan under Section 80C
-> Interest payment of Home loan under Section 24
-> HRA benefit


Many of us just go on saving and don’t even consider whether it is creating trouble for us or savings for us in real.

Here are the few financial trouble indicators, which, if, are there in your life then it is high alert for you:

1) High EMI on depreciating assets

2) Less savings despite high income

3) working for 3-5 years, but still have no asset

BEWARE of these few indicators and correct your financial life before it become trouble for you.


Here is the financial planning suggesstions especially for women:

For teenagers, Sachayika Scheme for women is best as you can invest in it from your pocket money also.

2) TWENTY (20’s)
For women in twenty’s health insurance and equity mutual funds are best as at this age they can take risk in investments.

3) THIRTIES (30’s)
When you reach your thirties term insurance plans, mutual funds, tax plans, real estate and investment in gold are best options.

4) FORTIES (40’s)
Retirement plan is best for the women in forties.

5) FIFTIES (50’s)
As age grows dependencies also increases, so now one should invest in less risky funds.

6) SIXTIES (60’s)
Senior citizen Savings Scheme is the best option for investment at this age.

Hopefully, now women would also consider them as important part in making investments. Invest by planning as it can help you in adverse situations and in good ones also.


Consequences of Delay in Filing Income Tax Return

1) Loss, other than from house property, cannot be carried forward.

2) Levy of Interest under Section 234A.

3) Penalty of Rs 5,000 under section 271F can be levied.

4) Exemptions/deductions under sections 10A, 10B, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE are not availabe.

5) Belated return cannot be revised under section 139(5).

Why to file income tax returns?

Here are the reasons why should you file your income tax returns?

-> If you fail to file income tax return then there may be a penalty imposed by income tax department.

-> You don’t get the benefit of carry forward of lossed

-> If a refund is due after adjustment of prepaid taxes or TDS, then you have to file income tax return.

-> It is very much required, if need any loan from bank.

-> Creates your financial history with Income Tax Department.

-> It is required if visa for foreign country is required.

-> Income tax return is a proof of your financial life while making any investments.


For any further details regarding filing income tax returns, you can contact at

Reasons to Invest in Mutual Funds

Mutual fund is a pool of money. It is managed by a professional investor. People purchase mutual funds because of diversification, professional management and convenience. Here are few reasons why people invest in mutual funds:

1. New/more types of funds

2. Few or no sales charges

3. Some performed better than common stock

4. Widespread marketing

5. Selection is easier

6. Dispense profits to investors

7. Investors expect dividend income

8. Investors expect price appreciation

9. Affordability

10. Professional Management

11. Transparency

12. Liquidity