Anytime is a good time to invest when it comes to SIP. By investing in SIPs with tax benefits in February you will be able to enjoy the benefit for the two remaining months of the current financial year. You would be investing in SIP for several years, so by investing in equity-based SIPs, your tax benefit will spread across the years. Having said that, in 2018 we did see a surge in the sale of SIPs in the early months (56% increase in the year to year comparison in January 2018).
It is a good idea to have a look at the economy and the stock market, buy when the share prices are low and exit the market when they reach a good “high”. To know more about the basics of investing in SIPs refer this piece.
2. What are the best ELSS in which one should invest before this financial year ends?
Axis long term Equity fund is a perennial favourite among ELSS investors because it has been performing well ever since its launch in 2009. Reliance Tax Saver Fund is another solid ELSS option in present-day context. Both these funds have a massive asset under management. It is, however, important to note that the past performance of the fund is only an indicator but may not be sustained in the future. So the wise thing to do is to split between multiple funds and diversify the market risk.
If you are looking to know more about how to invest in ELSS and make the most out of it, spend 3 minutes to read this article.
3. What is the income tax slab rate for AY 2019-20?
A very relevant question, as the financial year 2018-19 ends. One thought that will soon be on your mind is filing income tax returns. The income tax for the last financial year will be charged on the basis of the income tax slab decided for the assessment year 2019-20. Income tax slab is different for people falling under the age group, (i) up to 60, (ii) 60 to 80 and (iii) above 80. If you are below 60, your income is tax-free up to Rs. 2.5 lakhs. This becomes 3 lakhs in case of the age group 60-80 while 5 lakhs in case of people above 80.
You can learn all about the income tax slab of this AY and also get guidance on tax calculation here.
4. What are the best investments, in 2019–2020?
The best investment is one which fits your risk appetite and your expected rate of return. Safe options like bank fixed deposit and short-term debt funds are good investment options for the new financial year while precious metals like gold and silver and large-cap mutual funds are other great investment options for the New Year. Get detailed guidance on financial planning in our link.
5. What is the income tax slab for FY 2019-20 in India?
The income tax slab for the financial year 2019-20 will become applicable only after March 2020. It was part of the union budget presented earlier this year in February. The tax slab remains the same as previous years - If you are below 60, your income is tax-free up to Rs. 2.5 lakhs. This becomes 3 lakhs in case of the age group 60-80 while 5 lakhs in case of people above 80. However, one major change is the rebate under section 87A according to which income up to Rs. 5 lakhs becomes tax-free. Learn more about all the income tax related proposals in this year’s interim budget here.
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