How To Control Spending Habits And How to Budget and invest accordingly

People's income has increased in the last few years. High income people in the lifestyle and spending habits have changed too. Due to the growing habit of spending bucks in the habit of saving and investment is declining.

Advertising and marketing has undergone drastic changes and these are touching new dimensions. Every brand claims that he is the best in the market. In the circumstances, the willingness to take control of your expenses is essential. Rubbish spending habits can be quite harmful. In both the short and long term habit can be harmful for you.

While you may not like it but your budget is crucial for accurate financial planning. Can keep an eye on expenses through the budget, you can avoid wasteful spending and save more money. A perfect budget, prioritize your expenses and helps to avoid unnecessary expenses. Create a list that contains your important expenses such as victuals, Grocery, essential goods and transport costs are included, as well as the less important expenses such as entertainment, meals out, etc. are included. The first step to controlling your spending budget. If you do not see your expenses when you are spending excessively.

Avoid shopping in spirit:

The costs are those costs which are under the impulse and which are not under the plan. This leads to a reduction in your monthly investment. Such expenses are out of your budget and financial goals have come in the way.

Save Tax With U L I P How To Choose The Best ULIP Plan Unit Linked Insurance Plan (ULIP)

Under section 80C of the Income Tax Act, Life Insurance Unit Linked Insurance Plan (ULIP) of Rs one lakh on investment income can be exempted. In accordance with the provisions of the Income Tax Act ULIP is required to be invested for at least five years.

ULIP products are quite popular in the insurance market. Due to the popularity of these plans teasers and agents receive commission is sturdy, not the interest of investors.suffers heavy losses. Therefore, before taking the plan is essential to understand correctly.

How to work ULIP Plan: ULIP Plan benefits of investment to get insurance cover. These plans lock in five years - would be. Generally meets five times the annual premium for insurance cover. ULIP plan premium allocation charge from the premium fund monies remaining after the cut is made. There are various options in the Fund which may be invested in dept and equity in proportion to various risks and policyholders - based on the ability of the Fund may elect. Also from time to time can Switching various fund options. Returns of these policies depends entirely on the performance of fund and insurance companies do not guarantee that any of these plans.

ULIP plan, policy administration charges each month, Mortality charges, fund management charges, switching charges etc. are charged by fund units canceled.



If you are planning to invest more than 10 years.

. Even before you have adequate insurance cover for long-term and medium-term goals you only want to increase the cover.

. Insurance and you are not able to invest separately.

. You do not understand the various investment instruments.

. The market fluctuation risk reduction in equity from the dept or different fund options without switching to the tax burden.

The proposed Direct Tax Code: Direct Tax Code is proposed to be implemented from April 1, 2012. The proceeds will be received up to Rs 1.50 lakh. The lower limit is set to 2 all.

All limit -1. Up to Rs one lakh, Approved Funds (New Pension Scheme, Provided Fund, Super anutation gratuity etc.) may be obtained on the investment.

All Limit 2. The remaining discount of up to 50 thousand rupees, Life Insurance premiums (premiums, the insurance amount is not more than five per cent), health insurance premium and children's tuition fees will be obtained. So the Direct Tax Code is similarly applied all discount on the insurance premium - would find a limit on the basis of -2.

The obligation to get rid of long-term investments, return on investment and the necessary investment will be redeemed.He is able to.

You should also avoid over the years so that if you have selected the best of ULIP funds do not want to, you can not change it.

ULIP plan for tax savings, so if you're planning to deliberately make the decision. Lest you repent later?



First select your appropriate ULIP plans of various insurance companies individually expenses such as premium allocation charges schemes, Mortality harges, policy administration charges, fund management charges, switching charges, surrender charges etc. should compare. Additionally, various companies in the fund risk and returns of that fund should select the appropriate ULIP.

Tax Saving Tips For Every One Who Lives In India

Tax exemption under Section 80C can total up to 1 million. Life Insurance Premium 80C, Providet fund, PPF, NSC 8/9 tax on ULIP issue and may be exempt. Pension fund on its side, home - expenses of buying and investing in ELSS, Senior Citizens Savings Scheme is a tax deduction.

5 years or more term deposits / Fiskd tax rebate on tuition fee deposit and 2 children can be exploited. Self, spouse and children's insurance premium can get discounts of up to 20 per cent of the sum assured. But the grandchildren - a granddaughter named on the policy the premium will not be tax deductible.

Self, spouse and children PPF account opened in the name of tax can get up to Rs 1 lakh. HUF can not open a PPF account, but the name of HUF members can get tax exemption on investment.
 8.4 per cent interest in NSC 8 issue could get 5 years and 8.7 per cent in 10 years, interest in the issue NSC 9 is possible.
Tuition fee only two children can benefit from the tax exemption. In addition to tuition fees, development fees, donation, will not include the cost of books. Relatives of the children will not get a discount on fees. The only tax you can find at your children's school fees.

Where to invest to save tax,The benefits of tax exemption

Inter-disciplinary manner and meet its investment returns are linked. Failure to maintain discipline in your investment you may harm long-term financial goals. You should invest in a planned manner to avoid tax.



Financial Planning for portfolio investment are paramount. If you invest without Financial plannings It is quite likely that you may not receive financial goals. It can not bring you any Financial planner and quick hurry he will make in planning your whole Financial. This process also takes time. So to avoid such financial products which you are not aware.

There are many financial products in the market like the regular life insurance policy whose term of 15-20 years. Stay away from them for some time. You need time to understand about the product and will seek expert advice. If there is something wrong in your calculations, you can take a long time for the wrong product. Keep it simple to plan their investments and financial products that are easy to understand can leave whenever you want.
 Many people only think about one lakh live. Such people by investing Rs 1 lakh under Section 80C of the tax exemption should take. But often the reality is somewhat different. Please check all such investments and then see the final taxable income. Accounting for tax exemption amount you have to invest to take advantage of. Also you Rs 15,000 (Rs 20,000 senior citizens) can also take advantage of the tax rebate if you are paying a premium of health insurance.

Fixed Income

To save tax receipt at the Post Office in the National Savings Certificate can invest. The 8.6 per cent interest for 5 years you can get. So, just invest and save tax. Also you can invest in tax saving bank fixed deposits. The 5-year from 8.5 per cent to 9 per cent interest, you can achieve. If you are young, Public Provident Fund (PPF) account can also open. One thing to keep in mind that the PPF account should be opened for at least 15 years. It is a good choice for investors with low risk. If you can afford then you can invest in mutual funds.

Equity

Decline in the stock market for some time and have become an attractive valuation for investors. These schemes have had a 3 year lock in period and invest in equity.

April 2014 to your tax planning for the next year is the perfect time. So do not delay and tax saving investment immediately Here are some of the options to choose.

Tax Saving Donation

The aim of the charity is a social as well as economic one. However, if you want to pay a tax benefit in the process should take care of certain things.

Donation

Beautiful Bollywood actresses must first understand the meaning of the word charity is determined further processing. It also comes under donate what things are and what things should have this information out there. This money should be given voluntarily and not forcing anyone to be. These should take into account this fact, based on the definition of charity is understood.



Donation receipt must be

The person must ensure that the charity received donations in exchange for a receipt to be evidence. The receipt contains the information such as the total number of donations from charities seeking to be written. Besides, who donated the Permanent Account Number (PAN) with a description of payment information such as the Czech number or receipt number must be in the drafts. Income tax exemption for the taxpayer when filling out tax returns will get the benefit.

Frequent natural disasters that collects donations from employees, employers and various special funds such as the National Defense Fund, Prime Minister's National Relief Fund or the Chief Minister's Relief Fund deposits. In this case the tax benefits do not need to take some extra effort.




Some other information connected with Dan

Although at times it is necessary that the amount being donated to being in your taxable income. If it does not waive the income tax exemption on how it can be used. It is not necessary that the donation was received in the current year will be donated by the amount of. In any given year depending on your vantage person can donate.

Buy and then sell the home to save tax

If you buy a property and want to sell, so do not forget to think of capital gains tax.

There are several ways of dealing with capital gains and other taxes. Now let's see what that means.

Then you pay tax based on your tax bracket.

The applicable tax rate of 20 per cent after indexation. On long-term capital gains tax discounts are available. The way tax is:

• Within two years from the sales tax rebate if you buy one-get. The same amount invested in the new property is equal to the sum of the capital gains tax exemption is granted. If the balance is left on the Long-term capital gains tax.

• Rural Electrification Corporation or National highways Authority of India issued capital gain by investing in bonds within six months from the date of the capital gain.

Note that the limits for investment in any financial year is Rs 50 lakh. Institutions to issue bonds is the limit. The Bond first-come, first-served basis are issued.

Buy plot of building a house, you will get another year, but the construction work should be completed within three years of the sale.



Whatever benefit, the date of filing of returns of capital gains within the bank account deposit. With accumulated interest amount to be invested within two years of the date of sale.

This amount of Rs three million returns filed before capital gains will have to deposit savings account. Which will be invested on the capital gains tax is Rs 1,108,501. Tips

Maximum discount is dependent on capital gains from the sale.

Sales of new houses, old houses within a period of two years from the date of purchase.

Otherwise Before getting into capital gains tax exemption will be taxed. You will have to pay interest and penalty.

How to save Tax? Tax Planing for better life without Tension , tax Saving Investments

Tax planning is an important part of your personal finance. It is often seen that many people consider investing for tax saving, so have a proof of tax breaks. At the same time, however, financial advisers, banks and financial institutions begin to tell you the tax saving tips. Such investments may incur losses in the future.

Tax saving options, which investors can choose.

Taking out life insurance is right for tax purposes, but also should not forget the insurance.

PPF: PPF is the better way to invest, the investor receives a positive return. Under this scheme the Government returns of up to Rs 1 lakh under 80C is free. So with tax saving - investment with long-term perspective is a better option for the PPF.

ELSS: Equity market moves slower than the past 5 years, investors have put in big trouble. ELSS which was once the first choice of investors, even today, is facing a slowdown. But the perception of risk and long-term investors who can opt for ELSS.

FD: FD is a good option to save tax. With the protection of the investor's investment - even with the tax benefit is received. Deposit to lower class tax payers currently remains the preferred option.

NSC: Old National Saving Scheme and the changes it has brought new scheme for the next 10 years. The investor to avoid the tax - with the return on investment is taken care of.

Section 80 D:

Under this section, the taxpayer Health Insurance Scheme Rs 15,000 to Rs 20,000 for himself and his parents can fill the premium. Under which the taxpayer with tax - even for someone with bad times, can protect themselves.

Section 80 CCD:

The new pension scheme is exempt under this section. Under this scheme to get tax exemption limit is Rs 1 lakh. It is also important to note.