Overnight Funds

Overnight Funds are the debt funds that invest in bonds, money market instruments that mature in one day. Overnight Funds are introduced under debt funds by SEBI in new categorisation of mutual funds. Overnight Funds are the best avenue for parking your idle money, where investor can earn better returns with low risk or with even no risk.

Overnight Funds invest collateralised borrowings and lending obligation (CBLO), bonds, repo, corporate bond repo, short term borrowings backed by government, money market instruments like treasury bills, CD, CP with one day maturity. When securities mature, fund reinvestment the proceeds in next set of one day instruments. At the beginning of everyday, overnight mutual fund will have new portfolio.

Returns from the overnight for will reflect the overnight lending and borrowings rates in the market. Investor can purchase the units of overnight funds in previous day NAV if invested before 1PM of the day. Overnight funds doesn't carry any service tax, transaction tax, brokerage etc.

Mentotax recommends to utilise Overnight Funds to park your Emergency corpus with very merger risk and to invest your idle money to earn better returns even for one day.

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How to select financial advisor?

How to select financial advisor?

Financial advisors play a pivotal role in investment and financial journey of individuals. They help in acheiving life goals of the person by selecting accurate product based on the risk profile. Choosing a best financial advisor can change your finances. Financial advisors suggest you how to best save, invest, and grow your money.

Mentotax suggests you look for a professional with the following certifications. Financial advisors may have different certifications and experience but the following are considered to be best in the industry.

AMFI Registered Mutual Fund Advisors: Assocoation of Mutual fund in india in order to promote best practices and ethical standards in the business of sale of Mutual Fund scheme has formulated  guidelines to financial advisors. These code of conduct and best practices ensure high standards of services to investors. AMFI Registered mutual fund advisor is qualified person to distribute mutual funds.

SEBI Registered Investment Advisor (RIA): Market Regulator -Securities and Exchange Board of India (SEBI) has taken various steps to segregate distribution and advice. SEB has rolled out with Investment Advisers Regulations in 2013. RIA registered with SEBI is compensated only through the fee paid by the investor. This ensures that the RIA protects the interest of the investors. Financial Advisor needs to complete any certification prescribed by SEBI to register as RIA.

CFP (FPSB): Certified Financial Planner Certification is granted to individuals who meet the stringent standards of education, examination, experience and ethics set by FPSB India. FPSB India is the principal licensing body that awards CFP Certifications. CFP (Certified Financial Planner) is generally considered the gold standard in the industry.

Mentotax recommends to choose your financial advisor with these professional qualifications and select wisely for financial independence.

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How to Open NPS Account Online??

How to open NPS account online?

Mentotax is here to help you out with step by step process to open NPS account online using your PAN card.

Step-1: Visit eNPS Portal:

The first step is to visit eNPS portal
https://enps.nsdl.com/eNPS/NationalPensionSystem.html

Click on National Pension System and select “Registration” to open NPS account

Step-2: NPS subscriber registration:

New registration -> Individual subscriber -> Citizen of India and Tier-I only will be selected automatically and proceed to enter your PAN card and then select your bank.

Step-3: Subscriber registration core details:

Subscribers need to enter his or her personal details. Details like Email ID, Mobile number and Date of Birth, Proof ID etc. are mandatory fields. Click on “Generate Acknowledgement No” after filling all mandatory fields.

Step-4: Acknowledgement Number Generation:

If your name provided for NPS registration matches with name as per PAN records. It will allow you to proceed. You will get “Acknowledgement Number”

Step-5: Update contact details:

Complete FATCA details, second is correspondence Address and the third and final one is permanent address details. Click on “Save and Proceed”

Step-6: Update Bank and other details:

Select occupational details, fill bank details and then proceed

Step-7: Update Nomination and Scheme Preference Details:

Step-7.1.1: Update Scheme Preference Details

There are two sub-sections. First is Fund manager selection and second Investment choice.

Firstly, you have to choose your pension fund manager from the list of 8 fund managers.

Step-7.1.2 After selecting fund managers, choose your choice of investment: There are two choices of investment, Active Choice and Auto Choice

ACTIVE CHOICE:

Subscribers can decide allocation of money for investment in 3 assets classes. There classes are E (Equity), C (Corporate debt), G (Government Bonds)

AUTO CHOICE:

This is “Life Cycle Fund” and a very easy option for subscribers

There are three sub-choices: Moderate, Conservative and Aggressive. Allocation of fund for equity is highest in “Aggressive” and lowest for “Conservative”

Step-7.2: Update Nomination details:

Fill nominee details, like name, DOB, relationship and proceed

Step-8: Documents upload:

Upload scanned copy of PAN card and cancelled cheque. Maximum allowed size of file is 4 MB and minimum is 4 KB.

Step-9: Photo and signature upload:

Upload your photo and scanned copy of your signature. File size must be in the range of 4 KB to 12 KB.

Step-10: Payment Details:

You must make the first investment in your NPS account to get the PRAN number. Minimum investment amount is INR 500 for Tier-I and INR 1000 for Tier-II account. Payment Confirmation along with PRAN (Permanent Retirement Account Number) will be sent to mail.

You need to download the form. Print and stick your photo, sign the form and then send it to NSDL within 90 days.

Mentotax recommends you to Invest in NPS to save tax and create to retirement corpus. Mentotax advises to invest via auto choice for risk mitigation and better returns.

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NSDL / CSDL Consolidated Account Statement

NSDL / CSDL Consolidated Account Statement (CAS) is single statement of all Investments in securities market. CAS includes Investments in equity markets, preferential shares, Mutual Funds, Bonds, Debentures, Securitized Instruments, Money Market instruments, and Government securities held in various demat accounts.

CAS is part of vision to bring overall financial assests held in demat accounts, mutual fund folios in single view. SEBI has introduced CAS after the directions by Finance Ministry in the Interim Budget 2014. CAS helps you to monitor the Investment portfolio, Value and Composition.

CAS gives dynamic, detailed and graphical representation of Investment. CAS will show the various demat account held by you , secondly portfolio value trend implies your monthly movement of values then CAS provides you with holding in various asset classes with value. If you have e-insurance account for health and life insurance, that will also reflected in you CAS. Single statement of all your financial products.

Mentotax recommends you to activate and receive your Consolidated Account Statement. CAS helps you to monitor performance of Investments. CAS supports in rebalancing and restructuring of Investment.

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#Mentotax #NSDL #CSDL #CAS

Are You Keeping Track Of Your Money??

Are You Keeping Track Of Your Money??

Tracking your money is foremost important like earning it. Tracking of money will help you to identify the spending patterns and assist you in exploring deeper issues with finance.

Tracking Expenses may be boring, monotonous and time consuming. If you move ahead and track you expenses it will bring changes to your finances. Tracking with purpose helps you to bring decipline.

Why you should track money??

* To know where your money goes

* Identify spending patterns and problem areas

* To align your money with financial goals

* Help you to know your priorities

* Assist you in monitoring your progress

Tracking boosts you to identify reality of money and makes you set acheiveable goals and bring permanent changes to your finances.

Mentotax recommends you to budget your finances and keep track of all your expenses.

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#Mentotax #Money

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Form 16

Form 16

Need To Exempt Rs 20000 From Taxable Income?

Need to exempt Rs 20000 from Taxable Income?

Infrastructure is the back bone of the Nation. Government and Other Institutions requires huge sum for investing in infrastructure activities and growth. To raise the funds from public for infrastructure development of the nation, government and other institutions float bonds. Bonds are good instruments to borrow capital from public.

Section 80 CCF of Income tax act is a special provision enacted by government in 2010 benefiting the investors and to promote investments in Infrastructure bonds scheme. Section 80CCF provides taxpayers with a deduction on the amount invested in specific government or approved infrastructure bonds up to Rs 20000 per year on total taxable income.

Infrastructure bonds will be issued with a minimum tenure of 10 Years with mandatory lock in period of 5 years. Interest from the infrastructure bonds are taxable as per the slabs under Income from other sources. To avail the tax benefits under section 80 CCF investor should be an individual or HUF.  Only residents can enjoy the benefits.

Mentotax recommends you to utilise the opportunity to reduce taxable income by investing in the Infrastructure bonds. Maximum deduction of Rs 20000 of invested amount is exempted from taxable income under section 80 CCF of Income tax act..

Individuals in 5% tax slab can save Rs 1040/- Taxpayers in 20% tax slab can save Rs 4160/- and Assesse in 30% tax slab can save up to Rs 6240/- by investing in infrastructure bonds.

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#Mentotax #Infrabonds #Tax #80CCF

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