Money Is Not The Most Important Thing In life, But It Reasonably Close To Oxygen On The Got To Have It Scale.
Be an Investor
Use Money in Order to Make More Money follow the Cash Flow Quadrant.
There are four types of income generators in the world
1.The Employee safe and secure job.
2.The Self -Employed own their own job.
3. Business owner why to do it yourself if you can hire someone to do it for you like Tata, Birla etc.
4.investor who makes money with money.
AS SAID RICH V/S MIDDLE CLASS
Rich Earns – 30% from E or S and 70% from I,Others Earns – 80% or more from E or S and 20% or less from I
Let’s resolve in 2010 to be an INVESTOR: The Must Haves!
Health is wealth Absolute Truth; when it comes to health. Remember, for yearly executive health check up. Cover your family under Regular Mediclaim/Family Floater Plans & enjoy tax benefit u/s 80D. Sec 80D allows deduction of max limit of 15000, additional limit of 15000 for coverage of dependant parents and for senior citizen the limit is 20000.
Opt for LIC’s Health protection plus alongside and enjoy tax benefit of Rs 15,000 from 2 different files. Sec 80DD allows deduction of max amt of 50,000 or Rs 1, 00,000 for treating maintenance of severe disability for dependent family members. Sec 80DDB includes deduction of medical expenditure on treatment of prescribed ailments.
Review Liability Portfolio – when Too Much is Dangerous clear all your liabilities especially when we are not getting tax benefit out of it e.g. personal loan, car loan other than business loans and education loan so that we have complete financial independence. Sec 80E includes tax relief of interest payment on education loan for higher studies of child, spouse & self.
Home Loan – Let You Family Inherit the House Not the Home Loan; owing a house is not just a dream but a necessity and there are several tax benefits as well. We can always opt for housing loan as interest paid on home loan can be deducted up to 1.50 lacs, it can be doubled in case of joint borrowers.
Further there is no cap on deduction of interest if the house is either let out or deemed to be let out u/s 24 as this can be worked out as a good tax planning tool at the same time it creates asset for you.
Life Insurance is a plan that exalts life and defeats death; At any time human life value in society is far greater in magnitude than value of all property put together. Life insurance plans not only gives peace of mind, but also help us in securing our liabilities. Premiums paid also qualify for sec 80C & 80 CCC. The maturity proceeds are tax free u/s 10(10D)
Ready to retire rich? Chase your passion, not your pension; With stretched work hours and strenous routines, saturation level are setting in earlier for the youth today. In such a scenario, early retirement has become more a need than desire. Remember, the later you start for your destination, the faster you have to travel the later you start saving for retirement, the more you have to accelerate your rate of saving You can earn tax free monthly income per month by investing monthly from today. Retirement planning assures dignified and independent life.
Key Person Insurance; It is an old clich but a true one nevertheless, that one of the most essential elements in the success of any business is the quality of people working within it. As a business owner you are a valuable asset to the company ensuring yourself can ensure your company’s future and protect the future of your business. Cost (premium) under Key man Insurance is 100% exempt from business income u/s 37(1).
Prepare for Education and Childs Marriage through mutual funds. With higher appetite to take risk at younger age we can consider investing in mutual funds or unit linked policies with respect to short term planning. Investing amounts is SIP’s can lead to better results than having lump sum in traditional bank by taking advantage of the volatility in the market. ULIP and few mutual fund schemes are eligible for deduction u/s80C.
Note;The premium can be paid upto Rs 1,00,000/-to avail deduction u/s 80C, 80CCC. However the limit of 1 Lac can be exhausted by paying premium under any of the said section
Succession planning the key to better planning; Succession Planning combines elements of business design, ownership/management succession, wealth accumulation, retirement design, and estate planning.
For further reference we have added the factor on our website www.bharatparekh.com at InstaWILL
New Direct Tax CodeIn this budget finance minister is planning to introduce the DTC code which is believed to more simplified and easy but lets talk abt it once it comes.
Please check if you’ve taken the benefit
Sec 80C/80 CCC Investments upto Rs 1.00 Lac in Life insurance, ULIP, NSC, tax saver – bank deposits, mutual funds, post office schemes, EPF, PPF, Prin. Payment -home loans & children’s tution fees.
Sec 24 – Upto Rs 1.5 Lacs on home loan interest payments – For joint borrowers Rs 3.00 Lacs. For let out property, no limit on deduction of interest
Sec 80E Interest payments on education loan taken for higher studies.
Sec 80D – Deduction upto Rs 15,000 under mediclaim/health insurance policies. Additional Rs 15,000 for cover of dependent parents. Sr. Citizens limit is Rs 20,000
Sec 80 DDA – Upto Rs 50,000 for treating maintenance of a handicapped dependent/ Rs 1,00,000 for treating maintenance of a dependant family member with severe disability. E.g. amt deposited with LIC under Jeevan Adhar plan.
Sec 80 DDB – Deduction on medical expenditure on prescribed ailments
Sec 37(1) – Cost(premium) under Key person Insurance is 100% exempt from business income u/s 37(1)
Last but not least the Right Choice: choose your financial advisor with
Thorough knowledge in his domain
Strong client base.