The Delhi Traffic Police has issued traffic advisory in view of Shree Digamber Jain Etihasic Pauhbadi Dooj procession in the national capital today i.e. 10 December.
As per the advisory, elaborate traffic arrangements have been made across the city. The rath yatra or the procession will start from Shri Digamber Jain Naya Mandir (Dharam Pura, Chandni Chowk) at 9:30 am and will end there itself at 5 pm.
The route of the procession is as follows: Shri Digamber Jain Naya Mandir (Dharam Pura, Chandni Chowk) – Gali Guliyan – Dariba Kalan -Fountain chowk – Ghnata Ghar – Fatehpuri – Khari Baoli – Qutab Road-Sadar Bazar – Bara Totti Chowk – Shri Digamber Jain Mandir (Pahari Dhiraj).
As per the advisory, “Following the vice-versa of the above-mentioned route, the procession will conclude at Shri Digamber Jain Naya Mandir (Dharam Pura, Chandni Chowk) at 5 pm.”
In a tweet, the Delhi Traffic Police wrote, “In view of Shree Digamber Jain Etihasic Pauhbadi Dooj procession, elaborate traffic arrangements have been made across the city. Please plan your commute accordingly.”
Giving instruction to the general public, the traffic police has adviced to avoid the roads and stretches mentioned above.
It has also instructed the public to reach railway stations or airport well in time and Use public transport. “Park only at designated places and report unusual/suspicious objects or persons immediately,” it stated.
Opened on Shoal Bay East in November 2021 Alkera, is the newest top-of-the-line villa offered by luxury-lifestyle Leviticus Lifestyle & Travel. The concierge brand which specializes in the rentals of private, luxury villas, jets, yachts, and private islands not always listed for rent, is excited to add this five bed and seven bath villa to its portfolio.
Resting on the Shoal Bay East hillside and boasting one of the most enviable views of the Caribbean Sea, Alkera is a 12,000-square-foot contemporary architectural gem from Anguilla-based Morlens Architectural Services. Overlooking stretches of immaculate white sand and tranquil blue sea, this stunning villa presents the essence of luxury, privacy, and serenity. Morlens Architectural Services masterfully designed this villa to blur the lines between indoor and outdoor living throughout.
(credit: Pink Mako)
“As the leader in world-renowned luxurious, bespoke travel experiences, Leviticus Lifestyle & Travel has seen an increase in demand for privacy, luxury, and curated travel experiences. We are honored to add Villa Alkera to our existing diverse portfolio of opulent villas, diverse concierge services, and high-end experiences offered throughout St. Barts and Anguilla,” sand Kenroy Herbert, President, Leviticus Lifestyle & Travel.
The villa exudes modern energy with bold colors and quirky trims that pair quite spectacularly with the ocean blue patterns and hues which surround. Large glass panel doors and walk-out patios provide panoramic ocean views while walk-in closets and self-contained kitchen units are amenities that vary between rooms. The main kitchen combines functionality and luxury with all appliances needed to prepare a delicious family meal or host a larger meal with friends.
(credit: Pink Mako)
Another striking aspect of Alkera’s design is their underground recreational area which nests within Anguilla’s limestone rock. Next to this area, which features vaulted ceilings and dark earthy tones, is a generously outfitted home gym. Adjacent to this space is a private office with ocean views.
Other features include:
Heated infinity pool with a floating island platform, that seemingly dissolves into an unforgettable ocean panorama
Outdoor kitchen, bar, and dining area set amidst the lush front garden for al fresco dining
Open-air shower and an indoor garden with tucked-away hammocks and benches
Villa Alkera’s nightly all-inclusive rates (starting at $ 6,825.00 per night) vary by season with starting winter rates including a butler, chef, and private chauffeured transportation from the port of entry into Anguilla to the villa.
Expert 1: Mr. Dhaval Kapadia, Director – Managed Portfolios, Morningstar Investment Adviser India
Tax free bonds are bonds issued by various PSU entities with tenors of 10 to 20 years where the interest earned is exempt from tax. The last set of tax-free bonds were issued a few years since there has been no fresh issuance. These tradable in the secondary bond market. Target maturity funds are debt mutual funds that invest specified government securities or corporate bonds or state development loans/securities or a mix of them and typically hold these bonds to maturity. Hence, it’s a portfolio of bonds vs tax free bonds which are individual securities.
Pros and cons of investing in Target Maturity funds and Tax free bonds
Target Maturity funds
Pros
– Portfolio of bonds reduces credit risk and concentration
– Bonds are typically held to maturity thereby reduces interest rate risk in the interim particularly for investors that align their investment horizon with that of the portfolio maturity.
– Low expense ratio (vs other debt funds) due to passive management
– Visibility of returns – since the portfolio invests in specific securities with known yields and holds them till maturity, the visibility of returns at the maturity is better vs other debt funds
– Open-ended funds with easy liquidity since these invest in liquid securities
Cons
– If one exits prior to maturity of the underlying securities, the returns may vary
– In case interest rates rise further, there maybe an opportunity loss as one has invested at lower yields. And if one exits to re-invest elsewhere, the returns from the initial investment maybe lower due to adverse yield movement
– Debt mutual fund taxation is applicable. Beneficial only if held for 3 years and more
Tax Free Bonds
Pros
– Interest is completely tax free, beneficial mainly for investors in higher tax brackets
– Minimal credit risk as issuers are PSUs
Cons
– Limited liquidity in secondary market making it difficult to buy & sell
– Currently, for 3 year+ holding periods post-tax yields / returns on debt funds may be better than tax free bonds as government & corporate bond yields have risen more than those on tax free bonds.
Between Target Maturity funds and Tax free bonds, what would you advise to the investors?
Currently, given that yields on government securities and corporate bonds are higher than the yields on tax free bonds, even on a post-tax basis, investors with a horizon of 3 years & above, can consider target maturity funds.
Expert 2: Nitin Rao,Head Products and Proposition, Epsilon Money Mart
In the current market scenario, investors are looking for safer options with expectations of a decent interest rate and to protect their capital. Investors can explore the options in debt mutual funds which have various categories suitable for different time horizon and low volatile needs. Investors can explore options like Target Maturity Funds which are like tax free bonds in terms of high safety and negligible credit risk. Target maturity funds are passive debt funds which have a specified maturity date and the bonds held in the portfolio are aligned with the maturity date. TMF invests in government securities, psu bonds and AAA -rated corporate papers which are held to maturity. In TMF the investor knows exactly when the scheme will be completed, and the quality of holdings held. Whereas Tax free bonds are the fixed income securities issued by public undertakings offering tax free interest income to investors. The papers held are by PSU focusing on infrastructure related projects. The quality of G-sec holding of TMF has a high credit profile compared to tax free bonds.
If we talk about a time frame & liquidity, investors seeking steady returns and do have liquidity need for longer period say 10-20 years can prefer tax free bonds. Tax free bonds come with lock in period. Whereas TMF are open-ended schemes. You can sell or redeem units of target maturity ETFs or index funds at any time on stock exchanges (in case of ETFs) or with the asset management companies (in case of index funds). Target maturity funds offer high liquidity. Both TMF and Tax-free Bonds have their own pros & cons. The investors should consider all the factors before making any investment decision. Investors should seek the advice of their financial advisor regarding the proportion to be allocated in their portfolio depending on their needs and expectation towards return and investment time horizon. Both the avenues are suitable for those who expect steady returns and have a conservative approach towards market volatility.
Expert 3: Dr. Suresh Surana, Founder, RSM India
In accordance with SEBI regulations, target maturity funds are such funds which can invest only in Government Securities (G-Secs), State Development Loans (SDLs), PSU bonds, etc. Target maturity funds are passively managed debt funds with specified maturity period. One of the major benefits is that these are open ended funds that can be redeemed at any time before the maturity. However, these funds yield higher return as the target maturity period increases. The interest received over the maturity period is reinvested in the fund.
On maturity, the proceeds from the fund would be subjected to tax as short term capital gain or long term capital gain depending on the period of holding. If the period of holding from the date of investment in the target maturity fund upto the target maturity date is more than 3 years, then gains arising from the same would be classified as long term capital gains and would be subjected to tax @ 20% u/s 112 of the IT Act after availing the benefit of indexation. However, if such period of holding is upto 3 years, such gains would be categorized as short term capital gains and taxed as per the applicable slab rates applicable to the investor.
An investor can also choose to invest in tax free bonds which are issued by the government at fixed rate of interest. Just like target maturity funds, tax-free bonds can be redeemed before maturity or on completion of tenure.
With regards to the tax implications, the interest received on the tax-free bonds are exempt from tax. However, the capital gains, if any, on the maturity or redemption of tax-free bonds are subject to taxes under the IT Act. Further, if such bonds are held for more than 12 months, the gains arising from the same would be subject to tax @ 10% u/s 112 of the IT Act. Such gains would not enjoy any indexation benefit. In case the same is held for upto 12 months, the same would be taxable as per the applicable slab rates of the investor.
Expert 4: Mr. Arun Kumar, VP and Head of Research, FundsIndia
Tax-free bonds are usually issued by a government enterprise to raise funds for a particular purpose and the interest is fully exempted from tax. Eg: NHAI, PFC, NABARD etc. Target maturity funds track fixed income indices and invest in a basket of securities. These indices mature at a predefined date and the fund will automatically credit the money back to your account post maturity. The returns will be closer to the Net YTM (i.e. Yield – Expense Ratio) that was prevalent the time of investment provided we remain invested until maturity.
Unlike tax-free bonds, target maturity funds do not offer any tax advantage. Similar to other debt fund categories, the short term gains i.e. gains realized within 3 years of investment are taxed as per the tax slab of the investor and the long term gains i.e. gains realized after 3+ years are taxed at 20% post indexation.
While there is no special tax advantage, with RBI hiking interest rates, bond yields in general have risen in recent months. Due to this, the net YTM of the target maturity funds have become attractive and currently range between 6.6-7.3%. Assuming inflation of 4-6%, the post-tax returns could be in the range of 6.1-7.0%.
Meanwhile, the yields of the tax-free bonds remain low and currently offer only around 5%. Therefore, target maturity funds with high credit quality exposure maybe a better option at the current juncture. Further, in case of sudden need for funds, target maturity fund investors have the option to redeem their investments from the AMC before maturity. However, tax-free bonds have relatively low liquidity as they can only be sold in the secondary market to another investor.
Similar to other debt fund categories, the short term gains i.e. gains realized within 3 years of investment are taxed as per the tax slab of the investor and the long term gains i.e. gains realized after 3+ years are taxed at 20% post indexation. Tax Free Bonds: No tax on interest received. Short Term Capital Gains in less than 1 year are taxed as per the tax slab of the investor and Long Term Gains realized after 1 year are taxed at 10% (there is no benefit of indexation).
Expert 5: Nidhi Manchanda, Certified Financial Planner, Head of Training, Research & Development at Fintoo
The increase in market yields because of the rise in policy rates has made it a propitious time to invest in the fixed-income markets to benefit from the higher yields. It is probable to note that interest rates may not rise further aggressively and over a tenure of long-term, interest rates will marginalize. As interest rates and yields start easing, bond prices will start inching up, and will result in potential capital gains to bondholders and debt mutual fund investors.
In the current rising interest rate scenario, even if the interest rates go up further their magnitude pace will be relatively lower. It is an appropriate time to make good use of the current scenario and take up this opportunity. The deal can be better if you, as an investor, are willing to lock in your funds for the foreseeable future, and here is where Target Maturity Funds come into picture.
Target Maturity Funds invest in government securities, PSU bonds, SDLs and high quality papers. It is suggested to invest in TMFs as they have a predefined maturity. Suppose, an investor invests in a TMF maturing in 10 years at 7.35% yield, investors will relatively get close to the same yield of 7.35% before expenses and taxes. Please note that a TMF, if held for more than 3 years are taxed at 20% with the benefit of indexation making it attractive for investors in higher tax brackets as compared to tax-free bonds where yields in the same maturity are in the range of 4.5%-5.5%. Also, the expenses of TMFs are comparatively lower as they are passively managed.
Talking about risk involved, Target Maturity Funds that invest in Government securities will be better as compared to Tax free Bonds issued by PSUs. Investors willing to take the opportunity of current elevated interest rates and invest for the medium to long term can choose to invest in Target Maturity Funds. Investors should further make sure to opt for those funds with the maturity aligning to their financial goals. Additionally, investors looking to invest in a staggered manner can choose to invest in TMFs of different maturities.
Expert 6: Utkarsh Sinha managing director Bexley advisors a boutique investment bank firm
There are certain tax advantages to being in target maturity fund over time, that when coupled with the higher expected return, can offset the tax advantages of tax-free bonds with lower coupons. However: as with any investment decision, this should not be a question of comparison, but one of composition. What are the goals you have with your portfolio, what is the maturity period of your planned need and how much risk appetite you have should all weigh in on the portfolio construction, where indeed both TMF and Tax Free Bonds may be valuable components.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
So many of Australia’s remarkable treasures are isolated by the tyranny of distance and forces of nature. Extraordinarily powerful events and ancient secrets are hidden from all but a privileged few, fortunate enough to be guided through Australia’s Kimberley coast, aboard vessels like The Great Escape. The ultimate offering is a two-week Kimberley adventure cruise, covering the entire Kimberley Coast. With a maximum of just 14 guests, this is a true ‘choose your own adventure’ through the kingdom of the mighty estuarine crocodile, experiencing a country so old that the rocks contain no fossils as the they predate vertebrate life. All aspects of Kimberley coastal life are governed by the enormous tides, which are the second largest on earth. This expedition adventure immerses the passenger in an ancient land where even guests can make new discoveries of awe-inspiring aboriginal rock art, lost for millennia.
For those seeking a barefoot luxury disconnection from modernity, this is the greatest escape.
A helicopter with the doors off, a fabulous chef and Australia’s most experienced crew of Kimberley explorers, all makes for the very best adventure that Australia has to offer.
Although guests often hike or take heli-trips to the many incredible waterfalls and secret swimming holes, the Great Escape is designed to get up close and personal with the landscape, placing the bow of ship under waterfalls for a refreshing dip.
Over two weeks expedition, there is little evidence of any civilization, except the remote Berkey River Lodge.
Calm conditions, distant fires and the ever-present, iron-rich dust that hangs low in the sky ensures extraordinary sunrises and sunsets in the Kimberley.
Sir David Attenborough considered this site to be a wonder of the natural world. Driven by enormous tides, an inland sea attempts to empty itself daily through two narrow passes in the rock resulting in formation of the powerful “Horizontal Waterfall”. From the helicopter, it is an impressive site, but from the tender boats passing through the gap, there is a feeling of absolute raw power.
For travellers that are nervous about ocean voyages and less than excited about tumultuous seas, the Kimberley coast with its protected waterways, offers calm sailing with often glassy conditions.
The untouched Kimberley waters are pristine and teeming with life. The chef insists on the best fresh-caught fish daily, and guest are only too happy to oblige. From the mighty barramundi to the finest bluefin tuna and myriad other prized species (like this giant trevally), fresh fish is always on the menu.
The mighty Montgomery Reef is a powerful demonstration of Kimberley tides. At low tide, this enormous reef system appears to rise from the depths, with the escaping ocean forming thousands of white-water torrents and deep, navigable channels. From the helicopter high above, the result is an artistic array of green and blue with spectacular patterns.
Expert 1: Nidhi Manchanda, Certified Financial Planner, Head of Training, Research & Development at Fintoo
As per Income Tax Act, elderly taxpayers are classified as Senior citizens and Super Senior citizens.
Senior citizens are defined as an individual who is 60 years of age or above but less than 80 years of age. Anybody who is 80 years old or above is considered to be a super senior citizen as per Income Tax Act. This bifurcation is done to give additional tax benefits for people reaching 80 years.
One should note that under the old tax regime, senior citizens get a basic exemption of 3,00,000 i.e., an income earned up to 3,00,000 is tax free. On the other hand, for super senior citizens, this basic exemption limit is raised to 5,00,000.
You may check the income tax slabs for senior and super senior citizens under old tax regime in the table below: –
For Senior Citizens (Old Tax Regime)
Income Tax Slab
Income Tax Rate
Up to ₹3,00,000
NIL
₹3,00,001 – ₹5,00,000
5% of income exceeding ₹3,00,000
₹5,00,001 – ₹10,00,000
₹10,000 + 20% of income exceeding ₹5,00,000
Above ₹10,00,000
₹1,10,000 + 30% of income exceeding ₹10,00,000
For Super Senior Citizens (Old Tax Regime)
Income Tax Slab
Income Tax Rate
Up to ₹5,00,000
NIL
₹5,00,001 – ₹10,00,000
20% of income exceeding ₹5,00,000
Above ₹10,00,000
₹1,00,000 + 30% of income exceeding ₹10,00,000
It is important to note that a Rebate of Rs. 10,000 u/s 87A is applicable for senior citizens if their total income is not more than 5 lacs. Therefore, effectively senior citizens will not have to pay any tax if their income is up to 5 lacs. However, if the income crosses the mark of 5 lacs, then they will have to pay tax on the entire income exceeding 3 lacs.
If opting for the new tax regime, no additional exemption is available for senior and super senior citizens. Under the new tax regime, there is only one category of slabs which is applicable for all individuals with no categorization of senior or super senior citizens. Here, the basic exemption limit is lower at 2.5 lacs.
Opting for a new tax regime means lower tax rates but with a disadvantage of not being able to claim most of the deductions and exemptions like 80C, 80D, HRA, 80TTB etc.
In the following table, you will find the income tax slabs for senior and super senior citizens under the new tax regime: –
For Senior and Super Senior Citizens (New Tax Regime)
Income Tax Slab
Income Tax Rate
Up to ₹2,50,000
Nil
₹2,50,001 – ₹5,00,000
5% of income exceeding ₹2,50,000
₹5,00,001 – ₹7,50,000
₹12,500 + 10% of income exceeding ₹5,00,000
₹7,50,001 – ₹10,00,000
₹37,500 + 15% of income exceeding ₹7,50,000
₹10,00,001 – ₹12,50,000
₹75,000 + 20% of income exceeding ₹10,00,000
₹12,50,001 – ₹15,00,000
₹1,25,000 + 25% of income exceeding ₹12,50,000
Above ₹15,00,000
₹1,87,500 + 30% of income exceeding ₹15,00,000
Individuals should note that rebate of up to 12,500 u/s 87A is available in the new tax regime if the income is not more than 5 lacs.
Taxpayers should keep in mind that they will be liable to pay surcharge if their taxable income exceeds 50 lacs. Rate of surcharge increases with increase in level of income ranging from 10%-37% of income tax payable.
Additionally, health & education cess at 4% will also be levied on the amount of income tax plus surcharge.
Expert 2: Dr. Suresh Surana, Founder, RSM India
The income tax slab rates for Senior Citizens aged more than 60 years but less than or equal to 80 (as per the old tax regime) are as follows:
Total Income
Income tax rates (Senior Citizen) under Old Tax Regime
Total Income
Income Tax rates (Irrespective of the taxpayer’s age) under New Tax Regime
Upto Rs. 3,00,000*
Nil
Upto Rs. 2,50,000*
Nil
Rs. 3,00,001 – Rs. 5,00,000
5.2% [tax rate 5% plus health and education cess 4% thereon] (Effective Rate is Nil after availing rebate u/s 87A**) of income exceeding Rs. 3,00,000
Rs. 2,50,001 – Rs. 5,00,000
5.2% [tax rate 5% plus health and education cess 4% thereon] (Effective Rate is Nil after availing rebate u/s 87A**) of income exceeding Rs. 2,50,000
Rs. 5,00,001 – Rs. 7,50,000
20.80% [tax rate 20% plus health and education cess 4% thereon] of income exceeding Rs. 5,00,000
Rs. 5,00,001 – Rs. 7,50,000
10.40% [tax rate 10% plus health and education cess 4% thereon] of income exceeding Rs. 5,00,000
Rs. 7,50,001 – Rs. 10,00,000
20.80% [tax rate 20% plus health and education cess 4% thereon] of income exceeding Rs. 5,00,000
Rs. 7,50,001 – Rs. 10,00,000
15.60% [tax rate 15% plus health and education cess 4% thereon] of income exceeding Rs. 7,50,000
Rs. 10,00,001 – Rs. 12,50,000
31.20% [tax rate 30% plus health and education cess 4% thereon] of income exceeding Rs. 10,00,000
Rs. 10,00,001 – Rs. 12,50,000
20.80% [tax rate 20% plus health and education cess 4% thereon] of income exceeding Rs. 10,00,000
Rs. 12,50,001 – Rs. 15,00,000
31.20% [tax rate 30% plus health and education cess 4% thereon] of income exceeding Rs. 12,50,000
Rs. 12,50,001 – Rs. 15,00,000
26.00% [tax rate 25% plus health and education cess 4% thereon] of income exceeding Rs. 12,50,000
Rs. 15,00,001 – Rs. 50,00,000
31.20% [tax rate 30% plus health and education cess 4% thereon] of income exceeding Rs. 15,00,000
Rs. 15,00,001 – Rs. 50,00,000
31.20% [tax rate 30% plus health and education cess 4% thereon] of income exceeding Rs. 15,00,000
Rs. 50,00,001# – Rs. 1,00,00,000
34.32% [(tax rate 30% plus surcharge 10% thereon) plus health and education cess 4% thereon] of income exceeding Rs. 50,00,000
Rs. 50,00,001# – Rs. 1,00,00,000
34.32% [(tax rate 30% plus surcharge 10% thereon) plus health and education cess 4% thereon] of income exceeding Rs. 50,00,000
Rs. 1,00,00,001# – Rs. 2,00,00,000
35.88% [(tax rate 30% plus surcharge 15% thereon) plus health and education cess 4% thereon] of income exceeding Rs. 1,00,00,000
Rs. 1,00,00,001# – Rs. 2,00,00,000
35.88% [(tax rate 30% plus surcharge 15% thereon) plus health and education cess 4% thereon] of income exceeding Rs. 1,00,00,000
Rs. 2,00,00,001# – Rs. 5,00,00,000
39% [(tax rate 30% plus surcharge 25%^ thereon) plus health and education cess 4% thereon] of income exceeding Rs. 2,00,00,000
Rs. 2,00,00,001# – Rs. 5,00,00,000
39% [(tax rate 30% plus surcharge 25%^ thereon) plus health and education cess 4% thereon] of income exceeding Rs. 2,00,00,000
Above 5,00,00,000#
5,00,00,001 and above 42.744% [(tax rate 30% plus surcharge 37%^ thereon) plus health and education cess 4% thereon] of income exceeding Rs. 5,00,00,000
Above 5,00,00,000#
42.744% [(tax rate 30% plus surcharge 37%^ thereon) plus health and education cess 4% thereon] of income exceeding Rs.5,00,00,000
Note(i)*:– Any resident senior citizen whose age is more than 60 years but less than or equal to 80 years has a basic exemption limit of Rs. 3,00,000 as mentioned in the above table. Further, any resident taxpayer who is a super senior citizen whose age is more than 80 years has a basic exemption limit of Rs. 5,00,000 instead of Rs. 3,00,000.
Note(ii)#:– Marginal relief is available to ensure that the additional income tax payable, including surcharge of 10%, 15%, 25% or 37% on the excess of income over Rs. 50,00,000, Rs. 1,00,00,000, Rs. 2,00,00,000 or Rs. 5,00,00,000 as the case may be, is limited to the amount by which the income is more than Rs. 50,00,000, Rs. 1,00,00,000, Rs. 2,00,00,000 or Rs. 5,00,00,000 as the case may be. However, no marginal relief shall be available in respect of the health and education cess.
Note(iii)^:- Maximum rate of surcharge on tax payable on income chargeable to special tax rate under section 111A, 112A, 112, 115AD(1)(b) and dividend income shall be 15%.
Note(iv)**:- Rebate u/s 87A is applicable in case of new tax regime and needs to be availed for the amount of tax payable or Rs. 12,500, whichever is lesser, resulting in NIL tax liability provided the taxpayers total income is upto Rs. 5,00,000.
Note(v):- Special income would be chargeable @ special tax rates mentioned in Section 111A, 112, 112A, etc.
Further, any taxpayer availing the concessional tax regime / new tax regime would not be eligible to claim the following deductions (which can be claimed in old tax regime):
· 10(13A) – House Rent Allowance
· 10(5) – Leave travel Concession
· 10(14) – Special allowance detailed in Rule 2BB (such as children education allowance, hostel allowance, etc. other than transport allowance, travel allowance, daily allowance).
· 10(17) – Allowances received by MP, member of state legislature, etc.
· 10(32) – Clubbing benefit of Rs. 1500 per minor child
· 10AA – Deduction for SEZ unit
· Section 16 – Standard Deduction of Rs. 50000, Entertainment Allowance, Professional Tax
· 24(b) – Interest on borrowed loan for a Self Occupied property or Vacant Property u/s 23(2)
· 32(1)(iia) – Additional Depreciation
· 32AD – Investment Allowance for investment in Andhra Pradesh / Telangana / Bihar / West Bengal
· 33AB – Tea / Coffee / Rubber Development
· 33ABA – Site Restoration Fund
· 35(2AA) – Deduction for Payment to National Laboratory or University or IIT
· 35AD – Deduction in respect of specified business
· 35CCC – Expenditure on agricultural extension project
· 57(iia)- Family pension
· Any provision of chapter VI – A – section 80C, 80D etc. However, Section 80CCD(2) (employer contribution on account of employee in a notified pension scheme) can be claimed.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
The NPS is an excellent investment vehicle for employees across sectors, private and government. The NPS is one of the retirement-focused products in the market. It provides a gamut of offers and benefits. For example, your money compounds after certain years of your investment.
What does the NPS do for its investors or subscribers? It is a reliable pension source. This is best suited for those subscribers who are unable to generate regular income from their retirement funds.
Sadly, many investors invest in the scheme only to get a tax deduction of ₹50,000. This is the wrong approach if you want to invest for long-term capital gain. Moreover, asset allocation is also crucial to maximizing the NPS investment yield.
How to Choose the Right Asset Allocation for Your NPS Tier 1 Account?
NPS is a clear fund contribution scheme. Here you make regular contributions to the fund. The returns on investment generated during the NPS withdrawal depend on the portfolio asset allocation.
1. Active and Auto Choices
In Active Choice, the subscribers choose their asset allocation with certain limits – A maximum of 75% in equity till 50 years. The upper limit tapers by 2.5% each year till 60 years (up to 50% of the funds).
In Auto Choice, the subscribers don’t make any asset allocation decisions. There are three investment Life Cycle Funds choices:
Aggressive Life Cycle Fund (LC75) – These funds have an upper limit of 75% equity up to 35 years. Afterwards, it reduces down to 15% by 55 years.
Moderate Life Cycle Fund (LC50) – These funds have an upper cap on 50% equity up to age 35 years. Afterwards, it reduces down to 10% by 55 years.
Conservative Life Cycle Fund (LC25) – These funds have an upper limit on Equity of 25% up to 35 years. Afterwards, it tapers down to 5%.
Know How You Should Select the Asset Allocation for Your NPS savings
NPS should be a portion of your retirement savings portfolio. It should not be the only standalone investment. It will be wiser to invest for your retirement in EPF, PPF and equity funds also.
Choosing the Right Allocation
Here are a few tips to help you make the right asset allocation:
1. For younger people up to 40 years, be aggressive with your retirement savings. Allot copiously to equities. Include NPS in the investment mix.
2. The mid-40s or higher age group should allot a bigger portion of the funds to debt savings (EPF plus PPF). In NPS, invest largely in equities.
3. If your PF corpus isn’t chunky and you have invested heavily in equity funds, then be conservative with NPS for the safety of funds.
Conclusion
These are some normal approaches to having the right mix of investments. You have unique requirements as an individual investor. It makes sense if you take your own decision. If you feel nervous about making a decision alone, take investment advice from a good investment advisor.
Time after time, gold has proven to be one of the best investment options especially when there is high inflation. The yellow metal is seen as a haven to hedge funds against inflationary pressure in the economy because stock markets do tend to correct heavily when consumer prices increase. Not just that, gold itself has the potential to protect investment during economic uncertainties. There are many options to invest in gold either in physical or electronic forms. Some of the online gold investment schemes are gold ETFs, sovereign gold bonds, and gold mutual funds among others. But what is the best way to invest in gold?
Nidhi Manchanda, Certified Financial Planner, Head of Training, Research & Development at Fintoo said that the best way to invest in gold for a short to medium-term investment horizon is by taking exposure to Gold ETF or Gold Mutual Funds as they offer good liquidity, low cost, and less volatility.
In regards to the long-term, Manchanda said, one should invest in Sovereign Gold Bonds as they offer an additional 2.5% interest semiannually over and above the capital gains.
Further, Manchanda explained that SGBs have a tax advantage that if held till maturity i.e. for 8 years, capital gains will be exempt from tax. However, it is to be noted that if an investor wishes to sell SGB bonds after the lock-in period of 5 years, then proceeds will be taxable. Also, interest received will be taxable as per the individual’s tax slabs.
Also, Manchanda suggested investors to have around 5-10% exposure to Gold in their portfolio for hedging purposes and as a diversifier in their portfolio.
According to AMFI, a gold ETF is aimed to track the domestic physical gold price. They are passive investment instruments that are based on gold prices and invest in gold bullion. In simple words, buying gold ETFs mean you’re purchasing physical gold in electronic form. Further, gold ETFs combine the flexibility of stock investment and the simplicity of gold investments. In November month, gold ETFs saw an outflow of ₹194.74 crore.
Meanwhile, sovereign gold bonds are issued by RBI on behalf of the government. This gold bond scheme is available to resident individuals, HUFs, Trusts, Universities, and Charitable Institutions. The tenure of the scheme is eight years with an option of premature redemption after the 5th year to be exercised on the date on which interest is payable.
Under sovereign gold bonds, the minimum permissible investment will be One gram of gold, while the limit for a subscription can go a maximum of up to 4 Kg for individuals, 4 Kg for HUF, and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time. Payments for the gold bonds can be made through cash (up to a maximum of ₹20,000) or demand draft or cheque or electronic banking. The investors will be compensated at a fixed rate of 2.50% per annum payable semi-annually on the nominal value. These gold bonds are also eligible for trading. Further, they can be used as collateral for loans.
Currently, gold prices are picking up globally as investors pin their hopes on a much softer approach in December policy from FOMC which led to a pulling back in the dollar. Indian bullion also witnessed an upside.
On Friday, spot gold rose to $1,800.22 per ounce, while US gold futures rallied to $1,812.80 per ounce. Investors are keenly awaiting next week when US Federal Reserve will announce its December policy outcome between December 13 to 14th. After a fourth 75 bps rate hike, the street is expecting a much softer hike at least by 50 basis points as inflations have shown signs of easing. Generally, lower interest rates are beneficial for bullion as they lower the opportunity cost of holding the non-yielding asset.
Back at home, at MCX, gold futures maturing February 3rd ended at ₹54,307 up by ₹256 or 0.47%.
While providing a 35 bps hike in repo rate to 6.25% in December policy, RBI also announced that resident entities will now be allowed to hedge gold price risk on recognized exchanges in the International Financial Services Centre (IFSC).
Earlier, an Emkay Wealth Management report stated that gold demand is reported to have been on a firmer footing in Q3 of this year. The demand came mainly from central bank buying, amounting to 400 tonnes for the quarter, and retail consumers. The easing of covid related restrictions in China helped push up demand in China and retail jewellery demand in India too supported the markets. Jewellery consumption rose to 523 tonnes, a 10 % year-on-year rise despite the adverse sentiment. Overall demand growth was 28% on a Y-o-Y basis.
One big problem remains: Many sorting centers around the US don’t accept them.
The gap between Colgate’s engineering success and the practicalities of where-do-we-toss-our-empties underscores a persistent challenge for corporate America: Switching to packaging that can bypass landfills isn’t enough if there is no easy way to recycle it. In Colgate’s case, that is 9 billion tubes a year requiring extra effort to avoid the trash heap.
The new tubes, which currently cover 78% of the company’s US toothpaste lineup, are made with HDPE, the recyclable plastic used for products such as milk jugs. But in the fragmented US system, companies making recyclable products have to persuade a wide range of stakeholders, from local governments to private companies, to accept the items, sort them and turn them into something new. It’s a process that can take years. The tubes still aren’t classified as recyclable by How2Recycle, an organization that issues standardized labels with instructions on how to dispose of packaging.
Goods eligible for collection vary by community, and an estimated 40 million households don’t have access to recycling services from their homes. This all means that plastics get reclaimed at rates of only 8% to 28%, depending on the type. In light of the challenge, Colgate said it has engaged players across the supply chain for years. It has also shared its new tube design with other companies and says competitors will adopt similar recyclable plastic tubes by 2025.
“It is not easy work, given the many aspects of the process, but we are committed, and we believe we are on the right path,” Colgate said. The company has pledged to shrink its plastic waste and use “100% recyclable, reusable or compostable plastic packaging by 2025.” Sarah Dearman, chief innovation officer at the Recycling Partnership, an industry-funded group working to improve the system, said the new tubes are “a great step.”
But consumers must also have access to collection systems that accept the tube. It’s not clear how many do, according to a country-wide assessment by the Sustainable Packaging Coalition, an industry working group.
Colgate said the tube has a third-party certification showing it can be processed alongside HDPE bottles, which 87% of Americans can put in recycling bins. That type of plastic ends up being recycled nearly 30% of the time, one of the highest rates among recyclable materials in the US. However, Colgate says that acceptance may still be limited and advises consumers to check with local community programs. The company started updating the artwork on its boxes to provide more information.
Some consumers are taking note. Ethan Helvering, a tech worker living in Los Angeles, said he was looking for sustainable toothpaste alternatives when he stumbled upon Colgate’s new tube. He sees recyclability as a selling point and is glad to see the company’s efforts, though he has questions about what ultimately happens.
“If there’s an option to put something in the recycling, I’ll do it,” Helvering said. “Hopefully processes improve and at some point it becomes an actual reality.”
Colgate’s new tubes usually get sorted to the correct group once they reach plants that recover materials and bundle similar plastics together, according to a test the company commissioned. But most US recovery facilities don’t take tubes because the recyclable and traditional versions are so similar, said Sandeep Kulkarni, a technical consultant at the Association of Plastic Recyclers, a trade group.
The old tubes could cause contamination if consumers put them in the recycling bin, he added, so it’s still easier for recycling facilities to reject toothpaste tubes across the board. Waste Management Inc., which offers recycling and disposal services, said the tubes aren’t in its list of acceptable items.
Another concern is leftover toothpaste causing contamination, said Pete Keller, an executive at waste disposal company Republic Services Inc. It’s another area that seems to have discrepancies: On its website, Colgate says any residual toothpaste in the tubes is removed during the rinsing process at recycling facilities.
Together, Waste Management and Republic Services run about a quarter of the US materials-recovery facilities tracked by the Recycling Partnership, which said processing capacity is also an important factor.
Sander Defruyt, who leads a plastics-reduction initiative at the Ellen MacArthur Foundation, said that given the challenges of recycling, companies should invest more in alternatives such as reusable containers and packaging. Colgate sells toothpaste tablets in glass bottles, but has said consumers are more likely to gravitate toward the tubes they’re used to.
If more companies that turn plastics into feedstocks for new products start accepting the tubes, then acceptance rates at recovery facilities could jump, according to Stina Inc., which leads a tube recyclability project funded in part by Colgate. That would encourage more municipalities to collect them. But first, a higher percentage of toothpaste tubes must have the right design, Stina said.
Colgate said that’s the plan — and reaching that critical mass helps explain why it made the design available to competitors. Companies representing 90% of the US toothpaste market have committed to making the switch by 2025, according to Colgate. For example, Procter & Gamble Co. in 2020 unveiled new recyclable packaging for its toothpaste brands, including Crest and Oral-B, and said it’s targeting full conversion in the US and Europe by 2025. The new tubes use HDPE plastic, P&G said.
CBSE Exams 2023 date sheet will be announced by the Central Board of Secondary Education soon. Once released, the Class 10, and 12 date sheet can be checked on the official site of CBSE at cbse.gov.in and also on cbse.nic.in. The admit card will be released in due course of time.
Here is how to check the date sheet:
CBSE releases the date sheet on cbse.gov.in and cbse.nic.in
Class 10 students can check the same on CBSE Date Sheet 2023 for 10th standard to know subject-wise exam dates.
Class 12 students can check the same on CBSE Date Sheet 2023 for 12th standard to know subject-wise exam dates.
Meanwhile, the Board has annouced the CBSE Class 10, 12 practical exams. The CBSE practical exams will begin from January 1, 2023 onwards. As per the official notice released, schools have been directed to start the internal and practical exams on January 01, 2023.
The examination for Class 10, 12 will be conducted from February 15, 2023 onwards.
With Board Exams 2023 approaching, all boards across the country have started their preparations. Many of them have already released datasheet and admit cards and other required documents linked to exams, while few are still left.
The boards that have already announced their exam dates are CISCE, PSEB, MPBSE, Karnataka, Kerala, Assam. Meanwhile, UPMSP, BSEB, Andhra Pradesh, West Bengal and some other boards have still not released the time table for Class 10, 12 exams. The students have been advised to keep an eye on n the website of the boards for datesheets.
Most of the board exams will begin in March 2023 and will conclude in April 2023.
Kotak Mahindra Bank is among the latest to join the bandwagon of revising fixed deposit interest rates after RBI’s 35 basis points hike in policy repo rate to 6.25%. The leading private banker now offers a maximum 6.50% rate to the general category, while senior citizens are in for a treat as they will get to earn interest rates on their FD accounts to as high as 7%. The interest rates for elderlies are inflation-beating currently. Notably, the rates are revised on both FDs below ₹2 crore and bulk deposits with effect from December 9.
FDs below ₹2 crore:
General Category:
The maturity period from 390 days to less than 2 years has an interest rate of a maximum of 6.50%. While the bank is offering 6.40% on 2 years to less than 3 years tenures; 6.30% on 3 years and above but less than 4 years tenures; 6.25% on 4 years and above but less than 5 years tenures; and 6.20% on 5 years and above and inclusive of 10 years.
The interest rate of 6.25% is also applicable for 365 days to 389 days of tenure. While the rate is at 6% on 364 days tenure; 5.75% on 271 days to 363 days tenure; 4.25% on 121-179 days; and 4% on 91-120 days. The bank offers an interest rate of 5.50% on FDs maturing from 180 days to 270 days tenure.
On shorter tenures, such as 46 – 90 days, the rate is 3.50%, while the rate is 3.25% on 31 – 45 days; 3% on 15 – 30 days; and 2.75% on 7 – 14 days.
Senior Citizens:
The highest rate offered to Senior Citizens by Kotak Bank would be 7% on tenures from 390 days to less than 2 years. While the interest rate is 6.90% on 2 years but less than 3 years tenure; 6.80% on 3 years and above but less than 4 years tenure; 6.75% on 4 years and above but less than 5 years; and 6.70% on 5 years and above up to and inclusive of 10 years. An interest rate of 6.75% is also applicable for 365 days to 389 days of tenure.
The bank is offering a 6% rate on tenures from 180 days to 270 days. The rate is higher at 6.25% on 271 days to 363 days tenure and at 6.50% on 364 days tenure. On shorter tenures, the rate is 4.75% on 121 – 179 days; 4.50% on 91 – 120 days; 4% on 46 – 90 days; 3.75% on 31 – 45 days; 3.50% on 15 – 30 days; and 3.25% on 7 – 14 days.
Bulk FDs:
The bulk FDs range from ₹2 crore to ₹25 crore and above. While the tenures start from 7 days to inclusive of 7 years.
Kotak Bank is offering 3.75% to 6.80% on FDs from ₹2 crore to below ₹5 crore, while the interest rate from 4.25% to 7% on FDs from ₹5 crore but below ₹25 crore.
On FDs from ₹25 crore and above, the interest rates vary from 4.25% to 7.20%.
Under the bulk deposits, Kotak Bank said, the senior citizens’ rate is not applicable on NRO/NRE deposits, while no interest will be payable for NRE TDs staying less than 1 year.
For FDs with tenure below 181 days, the interest will be calculated at maturity as simple interest. The calculation of interest is basis 365 days in a non-leap year and 366 days in a leap (calendar) year.
