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Dhanteras 2021: What are investment options that can earn profit, save tax this Diwali? Know expert advice
Chadha shares tax-benefit investments such as Public Provident Fund, National Pension Scheme, Employees Provident Fund, Sukanya Samridhi Schemes, Senior Citizens Saving Schemes
How to enter 'Lakshmi' in the portfolio? On what to invest that can earn profit, save tax? How to balance debt and equity? In the show MoneyGuru, Zee Business' Swati Raina talks to Tax Expert Gauri Chadha about the investment options that can bring happiness and prosperity this Diwali.
Chadha shares that if we talk about tax-benefit investments then there are a lot of options such as Public Provident Fund (PPF), National Pension Scheme (NPS), Employees Provident Fund (EPF), Sukanya Samridhi Schemes, Senior Citizens Saving Schemes and in equity, Equity Linked Savings Scheme (ELSS), equity mutual funds can be considered. In these schemes, we can invest for long term, earn good returns and save tax as well.
Investment in PFF
She added that if we talk about the PPF scheme, then the returns and interest are tax-free. The investment amount is up to Rs 150,000, and the deduction can be claimed in 80C. The overall limit of 80C is Rs 150,000. PPF is considered one of the safest investments till date.
Investment in ELSS
Similarly, if you are young and can take risk, and understand equity, then one can invest through mutual funds in ELSS. In which, one can pay 10 per cent tax. But 2 years back, there was no tax on this. However, I feel, the government may remove this tax if you are investing in the long term, Chadha said.
"There is a tip, which I would like to share, for investors trading in the markets and mutual funds. Whatever investments you are making, if you are withdrawing or redeeming Rs 1 lakh profit then reinvest that same amount within the 1–2-day time then your cost of acquisitions will increase and when you will actually redeem that amount then there will be no tax or will have nominal tax," she added.
Investment in Gold
"There are two primary ways in which one can invest in gold. And the best is Sovereign Gold Bonds (SGB) and second is the traditional way, which is still being preferred by our senior family members - physical gold," she added.
पोर्टफोलियो में कैसे हो 'लक्ष्मी' का प्रवेश?
निवेश वही जो मुनाफा कमाए, टैक्स बचाए
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There is a risk of theft and purity issues for physical gold, along with deduction in the making charges. Also, there is a storage issue in physical gold. Whereas these are not the case of SGB. SGBs offer guaranteed periodic interest payments @2.5% p.a. along with the return of principal to the investors at maturity. Maturity period for SGB is 8 years. "If you are holding this for 8 years then after 8 years, the profit is tax-free. However, this 2.5% interest is fully taxable," she added.
(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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