Your last chance to avail these Tax Benefits

Tax planning image by RightHorizon Bangalore

Your last chance to avail these Tax benefits

You are aware of the deadlines for submitting investment proof to the employer. You’re also aware that failing to submit proofs can result in greater TDS and lower take-home pay. Still, procrastination is a hard habit to break, and you may find yourself in the same scenario as last year.

We agree that performing all the math and making tax-saving investments is not fun. Leaving tax preparation to the last minute, on the other hand, may lead to costly investment mistakes.

Take heart if you’re one of the people reading this who hasn’t yet prepared their taxes. YOU ARE NOT ON YOUR OWN.

In this blog, we’ll share with you four basic yet effective methods that Right Horizons Suggest its clients to help them finish their tax planning quickly while also avoiding costly blunders. So get a cup of coffee and continue reading…

Tip #1: Make sure you know how much tax you owe for the year.

The first step is to figure out how much income tax you owe for the year. Only if you owe a net tax will you be faced with the issue of tax planning.

When computing your income tax due, you must take into account all of your earnings as well as all of the deductions available to you under the tax code. The following are some of the common deductions that people overlook:

Tuition fees must be paid. Premiums for life and medical insurance Allowance for House Rent Donations to vetted organiz

Make sure you have adequate proof/documentation for the deductions you want to claim, such as a lease agreement, gift receipts, premium certificate, and so on. This will assist you in the event of a future tax assessment.

Tip #2: Examine the differences between the old and new taxing regimes.

You have an optional new tax framework in place, which is a substantial departure from last year’s Budget. What Right Horizons suggest is take new regime calls for a lower tax rate and fewer deductions. You can make the necessary calculations and select the most favorable regime for you.

Let’s say you’re a somewhat inexperienced investor with insufficient capital to make new investments. In that situation, the new tax system may be beneficial.

Assume, that you are a seasoned investor who has been making tax-saving investments every year and has a current home loan. In that instance, you may find that the old government is more helpful to you than the new regime.

Remember: If you are new to investing and taxation & this analysis seems too much work for you, Right Horizons can help you do your last-minute tax planning 

Tip #3: Fill in the gaps in your insurance coverage first.

Assume you need to make new investments in order to lower your tax liability. Here, you should make sure you have enough insurance protection in the form of the following policies:

Term life insurance is a type of life insurance that lasts for

Self-insured, family-insured, and parent-insured

Preventive health examination

For young investors, making insurance a top concern is critical. If a breadwinner dies unexpectedly or a medical emergency strikes the family, the wealth corpus will not be adequate to safeguard the family’s future. Insurance acts as a solid foundation upon which you can construct your money castle.

Tip #4: Conduct a comprehensive analysis before making an investing decision:

It’s not only about saving money on taxes when it comes to tax-advantaged investments. It should also assist you in building long-term wealth and meeting your financial objectives comfortably. Consider the following variables before making a tax-saving investment:

Determine your financial objectives and when you will require funds – The longer you have before you reach your goal, the more risk you can accept.

Decide how much risk you’re willing to take. Simply put, this is the percentage of your investment you’re willing to keep in equity in order to sleep soundly at night.

To acquire a holistic view of the investment, consider the risk, lock-in time, liquidity, taxation, and other factors, as well as if the investment is consistent with your financial goals. Don’t be swayed solely by profits.

If you don’t have enough time to perform all of the above, consider investing in ELSS and PPF. Keep in mind that ELSS is a long-term investment, therefore don’t cash it out before 5 years. PPF, on the other hand, has a 15-year lock-in period.

Conclusion

Tax planning ahead of time can help you prevent a slew of costly financial blunders that can’t be reversed. Even if you’ve left it too late to arrange your taxes, there are still simple last-minute financial steps you may do. The procedures will assist you in reducing your risks and ensuring that your investments are in line with your financial goals.

New Taxation Regime – Budget 2022-23

Portfolio management services in India

This year’s budget has not introduced any major changes but there are a few changes that we have to look out for and we will be looking at a few of those here.

The Budget 2020 introduces a new regime under section 115BAC giving individuals and HUF taxpayers an option to pay income tax at lower rates. The new system is applicable for income earned from 1 April 2020 (FY 2020-21), which relates to AY 2021-22.

In her Budget 2022, Finance Minister Nirmala Sitharaman did not mention any changes to tax slabs or rates. The diligent salaried taxpayer’s high hopes have been dashed. As a result, if the income tax rates and slabs remain unchanged, an individual taxpayer will continue to pay the same tax rates regardless of the tax regime adopted for FY 2022-23. If we talk about tax planning, Right Horizons are well updated with the new taxation slabs and can help you in your tax exemptions. 

Talking about crypto currency and its taxations, which has also raised a little debate in the market after the budget. Many people have breathed a sigh of relief after hearing something from the authorities on crypto. Trading and transacting in crypto-currencies, NFTs, and other digital assets is now formally legal. Taxation, on the other hand, is a source of concern. Cryptos have been declared as a virtual or digital asset, and will be taxed at 30% on income arising from such transfers, with no deductions or allowances except the cost of acquisition. Losses from such transfers will also not be allowed to be set off against any other income under any head, and gifts of digital assets will be taxable in the hands of the recipient, with a 1% TDS. To summarize, whatever you do with cryptocurrency, you must pay a piece of it.

Surcharge on long-term capital gains on any asset is restricted at 15%, which essentially implies that the surcharge cannot exceed 15% of the total net tax liability.  Similar to income tax and surcharge, health and education cess will not be allowed as a business expense.

Now coming on to the government employees, state government employees can guarantee exclusion of NPS at 14% of manager’s commitment which earlier was just 10%. The custom obligation on cleaned jewels and gemstones are decreased by 5%. This essentially implies soon the costs of a similar will be a lot of lower. There is likewise an obligation concession on import of parts of telephone chargers, transformers, calfskin, bundling boxes, and so forth which additionally thus will diminish the costs of these products. While the costs of Umbrellas will increment as the obligation on umbrellas has been expanded by 20%.

For NRI's

Non-residentials getting Income from seaward subordinate instruments or subsidiaries gave by an offshore banking unit, pay from sovereignty and premium because of rent of the boat, and pay got from portfolio the executives administrations in IFSC will be absolved from charge.

Other Points

These are the amazing presentations by the finance ministry in the current year’s financial plan, the market during the spending plan responded reasonably decidedly shutting in sure of +1.31%. Hopefully that the ricochet back proceeds and markets rise much higher.

The financial budget had more accentuation on the long future that is in front of us. It has additionally presented a battery trading strategy, for setting up EV stations. Movement, special visualizations, gaming and funnies area offers gigantic potential to utilize youth.

About Tax Planner:

Timely tax planning helps to avoid many costly financial mistakes which cannot be undone. Right Horizons helps you for your tax planning and make sure that you can get as much benefit as possible but however if you are a bit late in planning your taxes, you can take some simple last minute financial steps by consulting us. Our these steps will help you minimize your risk and will ensure that your investments are aligned with your financial requirements. 

This 20th Century formula still works, try it…

financial risk management | Right Horizons

This is the digital age. The transaction on money – savings, investment, shopping, payments, loans and salaries are all now happening via electronic medium. This has also led to consolidation of information, which was once dis-aggregated and difficult to track. Now we would be able to track ALL of our transactions that we have made during the past several years via a click of the button. The transaction trail can give insights into what we earned, spent, shopped for how much or invested how much and when. Better still, we have live information via apps about how much is the bank balance, investment account balance, spending limits, credit limits and due dates of all payments via smart apps that enable us to track the universe of our financial footprint via single or multiple digital interfaces.

As a result, most of the analytics and information dashboards; if used to the full potential may become a boon to get personal finances in shape and help become financially secure. Alas, this information overload has also worked against the individual since dealing with so much information on a day to day basis and working to keep it consolidated and makes sense of it most of the times takes a toll on the individual mentally. Above, all it requires a lot of discipline on the part of the individual to stick to the plan that was formulated despite making or knowing it through smart apps.

Though these smart apps allow for functions such as budgeting and planning via different tools, in practice it never materializes due to lack of discipline and inability to stick to the same due to impulses / over information on account balances or simply easy credit facilities availed.

Spending curbs and budgeting

The need for today, whether for individuals or families is to keep spending under check and not to shoot the budget that was planned (if at all) for the year. Getting a budget at the beginning of the year for spending on essentials and discretionary items is doing the basics right. Now while all the smart apps might make it easy to roll out a yearly budget, sticking to it while juggling between apps, account, keeping a track and above all having the discipline to not use / ignore the alarms might make the most efficient budget planning exercise seem useless.

Doing it the 20th Century style

20 or 30 years ago, family budgets were done yearly with monthly spending planned during the month, usually at the beginning of the month. This was done by allocating the planned expenditure for the month and all expenses anticipated (essential and / or discretionary) and allocation done before. There used to be a small buffer for unforeseen over budget items during that month, but this could be by a small percent of that period budget. If the spending for that month exhausted the limit, then there was no further spending on that line item or that spending could be rolled over to the following month.

So visualize a typical household budget on a monthly basis with – Food/groceries, staff payments, medical, school payments, travel & transport, communication and many such as being essentials and followed by a list of discretionary spending such as dining & entertainment, short vacations, weddings/parties, shopping nick-knacks etc.

Now imagine there are monthly / annual spending limits on each of these items. The essentials would normally take a uniform run-rate for the entire period however, the discretionary items are the ones that need the regulation / budget on a monthly / annual period.

The traditional way to do this would be to allocate an envelope to each of the expenditure at the start of the month and spend only that which is allocated to that expenditure item. If the envelop goes dry before the end of the month then no further spending occurs and if the there is balance in that then it goes into the emergency envelope that is not to be touched come what may except for emergency.

This method was practiced widely and still is done by many families but due to rapid digitization and quick payment systems, this method is less prevalent. This method might be useful for individuals / families that are struggling with issues of discipline or ones that need to get habituated to such form of spending. It is very rewarding method that helps keeps budgets in control and provide for the ability to get all your spending needs address, however big or small.

If you have not tried this yet or have heard of this right now, it might be time to start on with this without further delay at least for 1 yearly budgeting cycle.

How to spend your month-end happily?

Spend month end happily guide by Right Horizons

Have you ever reached the end of the month with almost nothing in your pocket and bank account? If so, you’re not alone. In fact, many Indians, often with large families, are living pay cheque-to-pay cheque. It can be one of the hardest cycles to break. Below are some tips on how to spend your month end happily and without worries.

Know Your Exact Budget

The biggest trick to help you spend less than you earn is to know exactly what you are earning and exactly where are you spending. It sounds simple, but

What should I keep in mind while going in for home loans?

Home loan tips by Right Horizons


When taking home loan one should keep in mind while going in for home loans
* – Decide how much loan you wish to borrow.
* – Pick between Floating Rate and Fixed Rate.
* – If interest rates are likely to go up in fixed, they are t come down in floating.
* – Benefits
* o 80C – 15 Lakhs
* o Sec 24 – 2 Lakhs.

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How do I plan for my child’s higher education?


– For most parents giving your child a good education is a priority.
– You need to have an estimate of the possible requirement.
– It is good to start early, you van look at approximate cost and inflation.
– If you plan for a course like Medical, the amount is much higher.
– Look at how much you need after inflation. Start investing if its higher inflation.
– Use a combination of products and Invest. Eg, Long term risk reduces as you come closer to the end date.

Not sure how to save for your child’s higher education? Anil Rego, Founder and CEO of Right Horizons Financial Services, talks about how you can plan for your child’s higher education.

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Common mistakes in managing money


There are many mistakes people make when it comes to managing their money. Watch Anil Rego, Founder & CEO of Right Horizons Financial Services, give his expert views on these mistakes and how to avoid them.

Talk to our certified “Senior financial planning advisors and wealth managers”.
Common mistakes people make while managing their money

* – In the long term, equities give you the best returns.
* – However, we compare it with fixed deposits, look at it in very short intervals.
* – Buy high, sell low.
* – Goals
* – Understanding risk and return
* – Too conservative, too aggressive
* – Very low risk you may not be able to beat inflation and achieve your goals.
* – Too high risk leads to loss of money.

Know more about how do we deal such problems in easy ways

Talk to our certified “Senior financial planning advisors and wealth managers”.

Call us +91 98453 99780

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What is the ideal retirement corpus one should have?

ideal retirement image


What is the ideal retirement corpus one should have?
– The retirement corpus that you require at retirement would differ from person to person.
– The corpus required would depend on several factors. It would depend on what is the monthly income that you need at retirement. We have clients whom we support with Rs 50K a month and we have customers whom we support with an income of Rs 5 lakh a month. One way to do it is to look at your current monthly expenses and adjust that for inflation.
– The other factors that go into computing your required retirement corpus is the tenure to retirement. Some of us may want to retire early, and if the tenure for which you require monthly income goes up, it again increases the corpus required. Many clients of ours choose to retire early to either pursue their interest which could range from entrepreneurship to working for social impact.
– There are other assumptions like inflation rate and the rate of return that would impact your inflation. What most people miss out is the impact of inflation post inflation. If you need Rs 1 lakh per month as of today, in the next 8 years that is likely to be Rs 2 lakh per month. At the 16th year, it is a staggering 4 lakh a month.
– Let me give you an example- a 40 year old person looking to retire at 60 years would require about Rs 3.5 to 4 crore.
– Since most of the time, this is a long term plan with many assumptions, we normally review where we stand against our goal every 2-3 year. As we come closer to the need, this helps us refine our assumptions.

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Golden days for Gold

Golden price in India

Golden days …

I remember those days,?

One day I was just searching for something like a letter in the cupboard of my bedroom.

Suddenly I found that something has fallen from the top of the shelf.

It was old & covered with dust.

I cleared the dust on my dress and observed it clearly.

An instant smile lit my face,

And a pleasantly surprised look too.!

It was my mom’s wedding photos

I forgot what I was looking for, and got immersed into these photos.

As I kept turning the album, I noticed the date 5/1976

I was so surprised.

My mom looked so beautiful in her bridal saree,

She had worn beautiful traditional earrings complemented with a beautiful necklace and adorned with hands full of jingling bangles,

Mom “Pawan what are you doing up there? “

ME: nothing mom, I just found some treasure!

No reply from mom

I found a paper and realised it is an old bill

The bill was dated with 5/76 (i.e. May 1976)

source Image is capture with 2 MP camera phone

But honestly, most of us don’t know how much the price when our father and mothers purchased gold in those golden days

Gold prices are expected to increase going ahead. The price of 24-carat gold has dropped by Rs 430 today.

Currently, 10 grams of gold in Hyderabad is priced at Rs 36,160. Market experts say that despite the strong trend internationally, demand from jewellers and retailers has slowed and the price has been adversely affected. At the same time, the price of 22-carat gold also fallen by Rs 230 to Rs 33,150.

The silver price, on the other hand, has remained steady. The price per kg silver is stable at Rs. 44,965. This is due to the lack of demand from industrial units and coin makers.

How many of you know the gold rate in golden days

For my readers here it is:

From 1925 to 2014

10 grams of Gold Price in Golden era

I hope Now we know the value of Gold
Let me give my conclusion

Going by the above data and past trends, How many of you expect the the “Gold Price” to Increase the cost ?

Based on these images can you imagine in the next financial year or next upcoming quarter?

The answer is “NO”

Not only in Gold prices
We have so many platforms which are gradually changing the graph every day/month.
Like Mutual Funds, Economy, Real Estate, Portfolio management services, Financial Planning etc.,

Likewise, in the market there are only a few companies who had more than 15 years of experience in the same domain and having the customer’s satisfaction rate more than 95%+

Ex: Right Horizons Financial Services Pvt Ltd.

Talk to our certified “Senior financial planning advisors and wealth managers”.

Bring back this beautiful smile in your golden years. Start planning for your retirement now.

Talk to our certified “Senior financial planning advisors and wealth managers”.

Call us +91 98453 99780

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Follow us
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Email : contactus@righthorizons.com

Whatsapp : +91 9148096684