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  • Answer Upon - Should we Pay 33.3% Tax or 14.5 % Tax ?

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    n dividend pay out option of the Mutual fund. He prefers to have tax free dividend income as cash flow. As per current tax law some of the balanced mutual fund is considered as Equity Mutual fund.

    3. Rahul invested in Growth option ( Mutual Fund ) and withdraws Rs. 0.12 million. His withdrawals attracts Short
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    The financing world can be intimidating for most. By understanding the different types of loans available, you will not only have more confidence going into the deal, but more importantly you will get the loan that is perfectly suited to your needs.FINANCING OPTIONS
    Investments Mutual Funds


    Mutual Fund Investment can be Growth, Dividend or Dividend Reinvestment. It is quiet tricky to judge which one is best option for you.

    In general, during extreme bear period you should invest in growth oriented Mutual fund with Growth option. You should invest capital through Systematic Invest Process ( SIP ) Route. Predefined money will be invested regularly through auto debit from your account. Investment horizon must be more than 5 years.

    While market is trending and your capital grows substantially. You can change to Dividend Pay out option. In this case you are taking out your profit.

    Mutual fund investment tips is for high return high risk fund, use dividend pay put and for conservative equity fund use Growth fund. You should have well chosen 4 or 5 mutual fund.

    All these decisions has also dependency on tax deduction.

    Here is a sample report on investments mutual fund in one of the hottest emerging market- India

    Should you pay 33.6% income tax or 14.5% tax?

    Lets consider the case of Mr.Dinesh and Mr.Ram's investment of Rs. 1 million after Finance Bill 2006.

    Assumption:

    1. Both of them fall into 33.6% income tax zone.

    2. Dinesh has chosen dividend pay out option of the Mutual fund. He prefers to have tax free dividend income as cash flow. As per current tax law some of the balanced mutual fund is considered as Equity Mutual fund.

    3. Rahul invested in Growth option ( Mutual Fund ) and withdraws Rs. 0.12 million. His withdrawals attracts Short

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    ystematic Invest Process ( SIP ) Route. Predefined money will be invested regularly through auto debit from your account. Investment horizon must be more than 5 years.

    While market is trending and your capital grows substantially. You can change to Dividend Pay out option. In this case you are taking out your profit.

    Mutual fund investment tips is for high return high risk fund, use dividend pay put and for conservative equity fund use Growth fund. You should have well chosen 4 or 5 mutual fund.

    All these decisions has also dependency on tax deduction.

    Here is a sample report on investments mutual fund in one of the hottest emerging market- India

    Should you pay 33.6% income tax or 14.5% tax?

    Lets consider the case of Mr.Dinesh and Mr.Ram's investment of Rs. 1 million after Finance Bill 2006.

    Assumption:

    1. Both of them fall into 33.6% income tax zone.

    2. Dinesh has chosen dividend pay out option of the Mutual fund. He prefers to have tax free dividend income as cash flow. As per current tax law some of the balanced mutual fund is considered as Equity Mutual fund.

    3. Rahul invested in Growth option ( Mutual Fund ) and withdraws Rs. 0.12 million. His withdrawals attracts Short
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    rofit.

    Mutual fund investment tips is for high return high risk fund, use dividend pay put and for conservative equity fund use Growth fund. You should have well chosen 4 or 5 mutual fund.

    All these decisions has also dependency on tax deduction.

    Here is a sample report on investments mutual fund in one of the hottest emerging market- India

    Should you pay 33.6% income tax or 14.5% tax?

    Lets consider the case of Mr.Dinesh and Mr.Ram's investment of Rs. 1 million after Finance Bill 2006.

    Assumption:

    1. Both of them fall into 33.6% income tax zone.

    2. Dinesh has chosen dividend pay out option of the Mutual fund. He prefers to have tax free dividend income as cash flow. As per current tax law some of the balanced mutual fund is considered as Equity Mutual fund.

    3. Rahul invested in Growth option ( Mutual Fund ) and withdraws Rs. 0.12 million. His withdrawals attracts Short
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    In order to bring targeted and effective traffic one needs to use the great flexible features Google AdWords gives you.When going into a AdWords Google account , one of the features Google gives you is adding negative keywords. These keywords gives the opportunity to get the traffic to be more targeted.fund in one of the hottest emerging market- India

    Should you pay 33.6% income tax or 14.5% tax?

    Lets consider the case of Mr.Dinesh and Mr.Ram's investment of Rs. 1 million after Finance Bill 2006.

    Assumption:

    1. Both of them fall into 33.6% income tax zone.

    2. Dinesh has chosen dividend pay out option of the Mutual fund. He prefers to have tax free dividend income as cash flow. As per current tax law some of the balanced mutual fund is considered as Equity Mutual fund.

    3. Rahul invested in Growth option ( Mutual Fund ) and withdraws Rs. 0.12 million. His withdrawals attracts Short
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    n dividend pay out option of the Mutual fund. He prefers to have tax free dividend income as cash flow. As per current tax law some of the balanced mutual fund is considered as Equity Mutual fund.

    3. Rahul invested in Growth option ( Mutual Fund ) and withdraws Rs. 0.12 million. His withdrawals attracts Short term Capital Gain Tax

    4. The scheme has earned 12% as distributable profit.

    Dinesh's tax liability with Mutual Fund Dividend Pay out Option

    12% of Rs. 1million is 1.2lah (0.12 million).

    Dinesh will get dividend of Rs. 105240 only. This is because Mutual Fund house pays dividend distribution tax Rs. 14760.

    Rahul's tax liability with Mutual Fund Growth Option

    After one year, NAV became11.20.He redeemed 10714 units to get Rs.120000.

    The Capital portion is 120000 (10/11.2) i.e. Rs. 107140.

    Capital gain is Rs. (120000 - 107140) i.e. 12860 .

    Short term capital gain tax is 33.6% of 12860 i.e. Rs.4330

    Hence, Growth option is better from Income tax planning and deduction perspective.

    Tax planning should be done before any taking any investment decisions.

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