Finance Buddy

Starting a mutual fund for your child no longer requires the cumbersome process of opening a bank account in their name. According to a recent circular released by the Securities Exchange Board of India (Sebi) on May 12, 2023, investments can now also be made from the bank account of the parent or legal guardian of the minor, or a joint account of the minor with a parent or legal guardian. This new rule will be effective from June 15, 2023. The recent change in rules is a positive development as it simplifies the investment process. Moreover, having a mutual fund in a child's name provides a stronger sense of commitment for parents to continue the investment. On the other hand, if the investment is in an individual's name, there is a higher probability of withdrawals during emergencies, for purchasing luxury items like the iPhone 14 Pro, or during market downturns.  However, it's important to note that the redemption proceeds of the investment will still be credited to t...

  Taxpayers must submit an income tax return to the government, commonly once a year, in order to disclose their earnings, deductions, and tax liabilities. Filing ITR allows you to calculate the amount of tax due to the government or the prospective tax refund from tax-saving investments. After filing your income tax return, you can employ the following tactics to maximise your tax returns, according to different tax experts. Sujit Bangar, Founder, Taxbuddy.com 1. File income tax returns on time to avoid late filing fees which will reduce your refund amount or can add an additional tax liability. 2. Before filing your tax returns, make sure to verify your personal and income details with 26AS & AIS/TIS. Check if all the TDS are reflected in 26AS so that full TDS can be claimed or adjusted against the tax liability and flag any incorrect information or income added to your PAN on AIS/TIS. 3. You have the option to switch your tax regime at the time of filing your returns. If yo...