Tax Ready Reckoner for Investments for FY 2015-2016

Tax Ready Reckoner for Investments - FY:  2015-16:

EQUITY:

Stocks:

1. If you hold on to them for a year, the long-term capital gain is tax free
2. Short-term capital gain is taxed at 15%
3. Dividends are tax free

DEBT FIXED INCOME INSTRUMENTS:

Savings a/c:

1. Interest up to Rs 10,000 is tax free, taxed at slab rate after that
2. TDS not deducted on savings interest.

Fixed deposits:

1. Full interest taxed at slab rate
2. TDS of 10% if interest in any financial year crosses Rs 10,000

Recurring deposits:

1. Full interest taxed at slab rate
2. TDS wef. this FY, the interest on RD is also subject to TDS like F.D.

Tax-free bonds:

1. Full interest is tax free
2. The long-term capital gain (after holding for 1 year) taxed at 10%
3. Being interest bearing instruments, no indexation benefit allowed
4. Short-term capital gain taxed at marginal rates.

Normal bonds and debentures:

1. Full interest taxed at slab rate TDS of 10% if interest in any financial year crosses the Rs 5,000 mark
2. The long-term capital gain (after holding for 1 year) taxed at 10%
3. Being interest bearing instruments, no indexation benefit allowed
4. Short-term capital gain taxed at marginal rates.

MUTUAL FUNDS:

Equity funds:

1. Long-term capital gain (after holding for 1 year) is tax free
2. Short-term capital gain is taxed at 15%
3. Dividends are tax free

Arbitrage funds:
(Provided they maintain equity fund status)

1. Long-term capital gain (after holding for 1 year) is tax free
2. Short-term capital gain is taxed at 15%
3. Dividends are tax free

Equity oriented balanced funds:

1. Long-term capital gain will be tax free
2. Short-term capital gain taxed at 15%.
3. Dividends are tax free

Debt funds:

1. Long-term capital gain (after holding for 3 years) is taxed at 20% after indexation
2. Short-term capital gain taxed at marginal rates
3. Dividends are tax-free in the hands of the investor, but scheme pays a very high dividend distribution tax of 28.32%

Debt-oriented balanced funds:

1. Long-term capital gains (after holding for 3 years) taxed at 20% after indexation
2. Short-term capital gain taxed at marginal rates
3. Dividends are tax-free in the hands of investors, but scheme pays a very high dividend distribution tax of 28.32%

Gold funds:

1. Long-term capital gain (after holding for 3 years) taxed at 20% after indexation
2. Short-term capital gain taxed at marginal rates.

GOLD:

Gold bullion and ornaments:

1. Long-term capital gain (after holding for 3 years) taxed at 20% after indexation
2. Short-term capital gain taxed at marginal rates.

Gold bonds:

1. Small interest received in the middle will be taxed at slab rates
2. Long-term capital gains (after holding for 1 year) taxed at 10%
3. Being interest bearing instruments, no indexation benefit allowed
4. Short-term capital gains taxed at marginal rates.

INSURANCE:

Endowment policies
1. Final proceeds tax free if premium in any year did not exceed 10% of the sum assured
2. TDS of 2% if the total receipt crosses Rs 1 lakh in financial year
3. Investors should consider service tax paid on premiums also while calculating returns
4. For endowment plans, it is 3.5% for first year's premium and 1.75% for the renewal premium.

ULIPS:

For ULIPs, service tax is 14% on all charges (like mortality charges, AMC fees, switch fees, etc)

REAL ESTATE:

1. Rent received (or notional rent for the locked up second home) are taxed at slab rate
2. Deductions available for rent includes property tax, repair costs, home insurance, etc
3. The long-term capital gain (after holdiing for 3 years) is taxed at 20% after indexation
4. Short-term capital gain is taxed at the marginal rates.

REAL ESTATE INVESTMENT TRUST (REIT):

1. Long-term capital gain (after holding for 1 year) from REIT units listed and traded in stock exchanges will be tax free 2. Short-term capital gain from REIT units listed and traded in stock exchanges will be taxed at a lower rate of 15%
3. REIT will be pass- through vehicle and is not liable for any income received by it
4. Rents received by REIT and distributed will be taxed at the hands of investors as rental income
5. Interest received by REIT and distributed will be taxed at the hands of investors as interest income
6. Dividends received by REIT and distributed will be tax free in the hands of investors.

Securities Transaction Tax (STT): STT is levied on stocks and equity mutual funds in lieu of tax-free dividends and also lower capital gain taxes. Equity mutual funds are defined as schemes that maintain more than 65% equity exposure and because of that, equity oriented balance funds and arbitrage funds also comes under this category.

Dividend distribution tax (DDT): The mutual fund dividends are tax-free, but there is a dividend distribution tax (DDT) applicable for debt mutual funds. The high DDT (works out to be 28.32% now) has taken the sheen out of the dividend options in debt mutual funds.

Indexation benefit: While computing long-term capital gain (LTCG), indexation benefit is provided as compensation against inflation. For example, if the LTCG is 10% p.a. and the inflation is 7% p.a., you need to pay tax only on 3% additional gains. Indexation benefit is not available for instruments that have interest components.

Body Pain and Linked Emotional States

12 Types Of Pain That Are Directly Linked To Emotional States

According to some doctors, psychologist emotions do affect chronic pain.
They say that chronic pain, beside physical injury, may be caused by stress and emotional issues.

Let’s take a look what does the pain say about person emotional states?

✨Head

Headaches can be caused by stress life. If someone has chronic headaches she/he needs to grab some time for themselves on daily basis. Relaxing may help you to relieve your body from the head pain.

✨Neck

Neck pain implies the need to forgive. It may be to forgive yourself or to forgive to some other person. It is very important to focus on things that you love about yourself or what others love in you.

✨Shoulders

Pain in the shoulders is sign that person carries a heavy emotional burden. Shoulders carry everything. To solve this problem share the load with friends or family.

✨Upper Back

Upper back pain manifests lack of emotional support. Probably the person is holding back feelings or doesn’t feel appreciated. Just talk about your feelings with your partner or close friend.

✨Lower Back

Pain in the lower back shows that person has financial worries. Sit down and focus on managing money.

✨Elbows

Elbow and arm pain signifies a lack of flexibility. Try not to resist the natural changes in your life.

✨Hands

Pain in the hands may be caused by a lack of friends. Try to meet new people.

✨Hips

Fear of change, moving or waiting on a big decision can cause the hip pain. Make the changes step by step.

✨Knees

Pain in the knee is a sign of high self-esteem. Maybe you should try to do some volunteering work and remember no one is perfect.

✨Calves

Calf pain is caused by stress, emotional tension or jealousy. Maybe it is time to let go the jealousy or any big stressor in your life.

✨Ankles

Pain in the ankle means that you need more pleasure in your life. Try to enjoy the little things and every moment in your life.

✨Feet

Foot pain occurs if you fight with depression. Depression is a specific disease, but for a start try to find a new hobby or just adopt a pet.

Source : multiple web sources